The 12th District Legislators today unveiled a ten-point economic stimulus package for New Jersey at a press conference at the State House. The initiatives includes bills that will spur economic growth in the real estate and retail industries, to create a friendlier atmosphere for businesses, and to strengthen the overall budget planning in the State of New Jersey.
Senator Jennifer Beck, Assemblyman Declan O’Scanlon and Assemblywoman Caroline Casagrande have been working diligently to create and support legislation that will assist New Jersey in emerging from this economic downturn successfully.
“The state of the economy in New Jersey has been poor for quite sometime,” said Beck, “and if we don’t make serious changes in the way we think about budget planning and fiscal responsibility, when this recession ends, New Jersey will be left in the dust.”
O’Scanlon, a member of the Assembly Budget Committee, said that many of the bills included in the package will encourage businesses to make New Jersey the home for their headquarters.
“It’s vital that we understand that if companies aren’t interested in doing business in New Jersey,” he said, “we won’t have the job market we need in order to survive. I have no doubt that a big reason New Jersey’s unemployment rate is the highest in the Northeast region is because New Jersey’s high taxes and unfriendly businesses practices have driven companies out of the state.”
“In addition to making New Jersey better for business,” Casagrande continued, “we have to make it family-friendly as well. We do need to get people out there, stimulating the economy. When sales in big ticket items, like cars and homes, fall severely, we have to make changes. Qualified people should be encouraged to buy their first homes, and that will only happen if the banks are solvent. These bills work together, to touch on many aspects of the economy. I encourage my fellow Legislators to support them.”
The measures include:
1.) First Time Homebuyer 2009 thru 2010
Provides a gross income tax credit of up to $7,500 for qualified home purchases made by certain first-time homebuyers in the remainder of the taxable year 2009 and taxable year 2010. The purpose of this is to encourage first-time homebuyers to venture into the housing market and spur the economic activity generally associated with home purchases.*
2.) Sales Tax Exemption for fuel efficient vehicles and energy efficient appliances
Exempts from sales tax for two years certain hybrid and highly fuel efficient vehicles and energy efficient (energy star-rated) appliances. The purpose of this bill is to encourage people to purchase big ticket items (such as cars and appliances) to help stimulate the economy, while taking environmental interests into consideration.*
3.) CBT Reduction
Reduces the corporation business tax rate and provides an additional reduction for taxpayers that relocate a corporate headquarters to New Jersey.
Overall CBT reduced from 9% to 8%, businesses with a net income of less than $100,000 CBT reduced from 7.5% to 6.5%, businesses with a net income of less than $50, 000 CBT reduced from 6.5% to 5.5%. Businesses moving HQ’s to NJ receive an additional 1% deduction for the first three years. The purpose of this measure is to encourage more business-friendly practices in New Jersey that will encourage job growth.*
4.) Savings Incentive
Provides gross income tax deduction for certain savings deposits and interest accrued thereon in the remaining portion of taxable year 2009, 2010 and 2011. The purpose of this bill is to inject liquidity into New Jersey banks and encourage New Jerseyans to amass greater personal savings. More liquidity in banks encourages banks to lend money and provide mortgages to qualified homebuyers.*
5.) Two-Year State Budgeting
Proposes a constitutional amendment to require the Governor to annually present to the Legislature a conceptual State budget plan covering two subsequent State fiscal years. All too frequently, New Jersey State budgets have relied on budgeting practices that result in revenues disappearing or expenditures spiking in the subsequent budget year. Because this bill will require that the subsequent year is always taken into account, it will bring about more foresight and responsibility in budget creation.
6.) Repeal Non-Residential Portion of COAH:
Repeals “Statewide Non-Residential Development Fee Act”; prohibits COAH from basing prospective need portion of fair share obligation on commercial development.
S-2685 – In Committee. Sen. Beck is Prime.
A-3714 – In Committee. Asm. O’Scanlon is Prime.
7.) Eliminates Pre-School Expansion Program
Eliminates expansion of preschool education program in “School Funding Reform Act of 2008.” Former Abbot school districts and five additional school districts that received approval for their pre-school expansion plans from the Commissioner of Education during the 2008-2009 school year will still provide the expanded pre-school programs. All other school districts would receive pre-school aid based on the amount of pre-school funding received in previous years.
S-2466 – In Committee. Sen. Beck is Co-Prime.
A-3622 – In Committee. Asw. Casagrande is Co-Sponsor.
8.) Delay Paid Family Leave
Delays implementation of paid family leave for two years. The payment of benefits for family temporary disability leave under that act would commence on July 1, 2011, instead of July 1, 2009, and the collection of taxes to fund those benefits will not take place until January 1, 2011. This will provide New Jerseyans with a stay on paying additional taxes during the worst of the economic downturn.
S-2686 – In Committee. Sen. Beck is Prime.
A-3466 – In Committee. Asm. O’Scanlon and Asw. Casagrande are Co-Sponsors.
9.) Restructure BEIP (Business Employment Incentive Program)
Reintroducing the original BEIP bill, crafted by Asm. Joseph Azzolina in the 1994-95 Session (A-3210). This bill will provide real incentives for business and employment growth. The purpose of this program is to make direct payments in the form of grants to businesses creating new jobs in the State. The amount of the grant would be between 10% and 80% of the total amount of State income tax withheld by the business during a calendar year for the new employees hired.*
10.) Eliminating Realty Transfer Fee
Eliminates the general purpose fee and the supplemental fee. The legislation maintains the basic fee, the additional fee, and the fee imposed on transfers of title to residential property whose transaction price is at least $1 million. As a consequence of this bill, property sellers would have to pay a diminished amount in realty transfer fees, for example, the legislation would lower the fee liability about 44% for a real property selling at $350,000.
S-954 – In Committee. Sen. Beck is Co-Sponsor.
A-1823 – In Committee.
* = Bills crafted by 12th District Legislators and introduced June
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March 10, 2010
