N.J. Business Could Get Sales Tax Break by ProQuest


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									N.J. Business Could Get Sales Tax Break                                                                                                                      initiative to give a $3,000 tax credit to the same-
                                                                                                                                                             sized companies for every new job they create.
                                                                                                                                                                   The Corzine administration has said the
                                                     Zaro, Corzine’s chief of Economic Growth. The            “And it puts money in the economy,” Zaro       cost of the economic package is $150 million, but
               By Scott Goldstein
                                                     Department of the Treasury, however, said a        added. “Hopefully, they buy these things from        has yet to offer a detailed financial breakdown.
                                                     minimum purchase dollar figure to qualify for      other New Jersey entities. It allows us to boost           Philip Kirschner, president of the New
TRENTON — Small and mid-sized businesses             the exemption has yet to be settled. The tax       the economy twice with one discount.”                Jersey Business & Industry Association, said
won’t have to pay the state’s 7 percent sales tax    break would last for two years.                          The details of the program are expected        the tax break “will get people’s attention.”
                 when making capital purchas-              “What we are trying to do is stimulate       to be part of the bill, dubbed the “Invest in              Builders also would benefit, said Gil Med-
 STATEHOUSE es of furniture, computers and           spending,” Zaro said. “It allows them to buy       New Jersey Tax Benefit Act.”                         ina, head of Cushman & Wakefield’s state
other material under an overlooked part of Gov.      machinery, equipment, furniture and fixtures             The bill will be guided through the Legisla-   operations. “Right now, you pay sales tax on
Jon S.Corzine’s plan to weather the economy.         for a project without [paying] tax. It obviously   ture by Senate President Richard J. Codey (D-        capital investments and construction materi-
     This tax break is for companies with            makes it cheaper for the companies that are        Essex) and Assembly Speaker Joseph J.Roberts         al for expansion,” he said. The tax break “can
between five and 500 employees, and would            acquiring these things and induces them,           Jr. (D-Camden). Both men say they support the        be pretty significant.” ◆
apply to purchases of at least $3,000, says Jerold   through the discount, to spend now.                sales tax incentive, as well a companion Corzine                         E-mail to sgoldstein@njbiz.com

                   Anything but business as usual.                                                                                                           SHIFT Changing Focus
                                                                                                                                                             ➤➤ Continued    from page 5

                                                                                                                                                             are working to contain the damage,” he said.
                                                                                                                                                                   It’s a smart tactic in difficult economic
                                                                                                                                                             times because “it’s easier to get companies to
                                                                                                                                                             grow than to get a company to uproot,” said
                                                                                                                                                             Jim Leonard, legislative lobbyist for the New
                                                                                                                                                             Jersey Chamber of Commerce.
                                                                                                                                                                   In the past, particularly under the policies
                                                                                                                                                             of former Gov. Jim McGreevey, small and mid-
                                                                                                                                                             sized companies felt “neglected,” Leonard
                                                                                                                                                             added. Tax breaks primarily focused on large
                                                                                                                                                             companies that relocated to or expanded in
                                                                                                                                                             New Jersey, and part of the reason was politics,
                                                                                                                                                             Leonard said. “A groundbreaking gets more
                                                                                                                                                             publicity than a company adding more jobs,”
                                                                                                                                                             he said. “You get the political focus on more
                                                                                                                                                             positive press.”
                                                                                                                                                                   Treasurer David Rousseau insisted,
                                                                                                                                                             however, the new tax breaks doesn’t mean the
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