E-commerce has been an economy-saving sector in the state for the past decade.
So, it only makes sense … to tax it more.
Such appears to be the case. On Tuesday, Gov. Phil Murphy’s proposed budget includes a $2 truck excise fee that would be imposed on warehouses throughout New Jersey based on the number of truck trips.
The state expects the fee will raise an additional $20 million of revenue.
David Greek, chair of Circulate NJ, an industry advocacy group, questioned the logic.
“The logistics industry supports over 400,000 jobs,” he said. “These hard-working New Jerseyans provide the essential services of ensuring shelves are stocked, medicines delivered, and packages arrive at your door on time and undamaged.
“Unfairly punishing one of New Jersey’s fastest growing job sectors, along with the millions of residents who would ultimately bear the cost of this fee, does not seem like the best approach.”
The numbers don’t add up, Greek said.
“The governor’s proposal would barely raise enough revenue – less than .1% of the state budget – to make the cost of directly hurting so many everyday New Jerseyans even close to being worth it,” he said.
Dan Kennedy, the CEO of NAIOP-NJ, said the tax will be felt by everyone.
“Practically everything bought in New Jersey is first stored in a warehouse in New Jersey,” he said. “In fact, Cushman & Wakefield research shows that 67% of our warehouse inventory ties to everyday consumer needs including food and beverage, cold storage, retail/wholesale and 3PL/fulfillment. This fee will force prices for groceries, prescription medication, baby formula, diapers, clothes, books, school supplies and more to climb even higher in our state.”
Kennedy thinks people don’t fully understand the beneficial impact the warehouse industry has.
“While a vocal minority of the Governor’s supporters oppose warehouses, the truth is that warehouses subsidize property taxes for millions of New Jersey homeowners,” he said.
“Without the tax revenue towns receive from warehouses, most homeowners would likely be paying significantly more each year for property taxes.”
Eric DeGesero, a lobbyist for the New Jersey Motor Truck Association, agreed.
“It’s hard to know which Gov. Murphy to believe – the one who talks about the high cost of eggs and housing, or the one who will assess a $20 million tax on the facilities that store eggs and lumber – and everything else – before we buy them.
“The Legislature needs to stop the warehouse tax, also known as the tax on everything.”
To be sure, there is more.
The budget also is proposing a new excise tax on the purchase of “certain unmanned aircraft systems” – better known as “drones.”
Other potential revenue raisers are an increased social equity excise fee on cannabis (from $2.50 an ounce to up to $30), which is projected to raise an additional $70 million.
An increase on taxes on firearms and ammunition sales is projected to generate an additional $7.8 million.
