Christie to Give Keynote Address at ELC Dinner

Voice
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Editorial Contact
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Advertising Contact
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y
New Jerse
Christie to Give
Keynote Address
at ELC Dinner
Page 8
HIGHLIGHTS
The Latest on
Regulatory Reform
Page
2
NJBIA Urges Committee
Not to Weaken UI Reforms 3
Bill Would Prevent
$750M UI Tax Hike
on July 1, 2011
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est. 1910
New Jersey Business &
Industry Association
B
ARY
Celebrating a
f Service to
Century o s i n e s s
NJ Bu
100THA
NNIVERS
3
MEET THE DECISION MAKERS:
Treasurer Says Christie
Committed to Tax Cuts 4
ASK THE EXPERTS: New UEZ Sales-Tax
Exemption Procedure
6
Calendar of Events
7
Vol. 14, No. 4
April 2011
Legislature Passes Two Tax-Reform Bills
To Improve State’s Tax Climate
Legislators on March 3 unanimously
gave final approval to two key business
tax-reform bills that would improve New
Jersey’s business tax climate—single-salesfactor tax reform and loss carry-forwards
for businesses that pay income taxes instead
of corporate taxes. NJBIA has long been an
advocate for these tax changes.
Senate President Stephen Sweeney,
Assembly Speaker Sheila Oliver, Senate
Republican Leader Tom Kean, and Assembly
Republican Leader Alex DeCroce are to be
commended for their leadership in ensuring bipartisan passage of these bills. Both
measures have been sent to the Governor for
his consideration.
The single-sales-factor bill, S-2753
(Whelan, Madden)/A-3869 (Greenwald,
Milam), would level the playing field
between New Jersey companies and out-ofstate companies. Currently, New Jersey’s
corporate business tax is based on
three factors—a company’s in-state
sales, facilities and employment. As a
result, a New Jersey company with a
significant in-state employee base and
in-state facilities pays more in taxes
than an out-of-state company that
has the same level of in-state sales,
but little employment or property
here.
S-2753/A-3869 would base the
tax solely on in-state sales. With
the elimination of the payroll and facilities
factors, New Jersey companies will no longer
be hit with what amounts to a tax on their
investment in New Jersey.
This reform, which would be phased in
over three years, would make the way New
Jersey taxes multi-state businesses comparable to what is done in New York and
Pennsylvania.
Under the business income bill, S-2754
(Buono, Greenstein)/A-3535 (Greenwald,
Barnes), businesses such as LLCs, partnerships, S corporations and sole proprietorships would be able to write off losses in
one year from income in future profitable
years. These companies pay gross income
taxes, and this type of loss carry-forward is
currently available only to companies paying
corporate business taxes.
In addition, the measure would allow
these businesses to offset a gain in one
income category from a loss in another
income category. For instance, (cont’d on pg. 6)
Made in New Jersey Day
Seen here with owners Dean and Christina Serratelli, Lt. Gov.
Kim Guadagno (right) displays one of the cowboy hats made
by the Serratelli Hat Company in Newark at NJBIA’s Made in
NJ Day. See page 5 for more.
Business Voice
Regulatory Reform Update
New Jersey Seeks to Adopt Federal
Wage-and-Hour Standards for Exempt Workers
Under a rule proposed March 21,
New Jersey employers would no
longer have to abide by different
and tighter state standards governing when they must pay their
employees overtime.
The proposal would make
New Jersey’s wage-and-hour
regulations identical to federal
requirements in determining when
an employee is exempt. (Exempt
employees do not have to be paid
overtime.)
Federal and state laws both
allow exemptions for executive,
professional and administrative
employees but differ in how those
exemptions apply. In New Jersey,
an exempt employee is prohibited
from spending 20 percent or more
of their workweek performing
non-exempt duties (40 percent for
retail and service employees.)
Federal regulations do not
specify a percentage of time. They
require only that an employee’s
“primary duty” is exempt work and
state that employees who devote
Regulatory Reform Bills
Become Law
Two new laws signed by Governor Chris Christie will ease the regulatory
burden in New Jersey. NJBIA supports the bills, which implement recommendations of his Red Tape Review Task Force.
A-2720 (Burzichelli, Rumana)/S-2014 (Oroho, O’Toole), will make it
easier to change regulations once they have been proposed. Currently, any
change to a proposed regulation requires the initiating agency to restart the
entire regulatory proposal process. As a result, agencies are reluctant to
accept changes proposed during the public comment period.
A-2853 (Burzichelli, Milam)/S-6 (Sarlo, Kyrillos) will streamline the
permitting process for certain economic development projects. The new
law requires state agencies to identify any permits that might be obsolete,
are no longer necessary or cost more to administer than the benefits they
provide, and could be eliminated without endangering public health,
safety, or general welfare.
For more information, contact Sara Bluhm at sbluhm@njbia.org. more than 50 percent of their
time performing exempt work will
generally satisfy the requirement.
NJBIA supports this change.
New Jersey’s existing regulations
have caused considerable confusion. For more information,
contact Stefanie Riehl at sriehl@
njbia.org.
DEP Proposes
Waiving Its
Rules in
Specific Cases
The NJ Department of Environmental Protection has proposed
a rule to allow the agency, in
certain cases, to grant waivers
to regulations. The proposed
waiver procedure would implement Governor Chris Christie’s
Executive Order to establish
“Common Sense Principles.”
The DEP would consider
a waiver application to resolve
differences over conflicting
rules, provide relief from unduly
burdensome rules or respond to
a public emergency. Applications must be site- and factspecific and cannot compromise
environmental protection or
public health.
Manage Your Business. We’ll Power It.
constellation.com/NJBIA
866.237.POWER (7693)
© 2011. Constellation Energy Group, Inc. The materials provided and any offerings described herein are those of
Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Brand names and product names
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2
April 2011
Legislative Update
Gov. Christie
to Deliver
Keynote
Address at
June 15
ELC Dinner
Governor Chris Christie will
deliver the keynote address at
the Employer Legislative Committee (ELC) Dinner June 15 at
the Westin Princeton at Forrestal
Village. The event begins with
a reception at 6:00 p.m. and
dinner at 7:00 p.m.
The ELCs are the grassroots
affiliate of NJBIA. There are 18
ELCs representing all 21 counties. The ELC dinner, held right
after New Jersey’s June primary,
is the kickoff to the fall election
season, when all 120 legislative
seats will be contested. This is
one of the key business events
of the year with hundreds of
business people and key government decision makers attending.
Those wishing to attend can
register online at www.njbia.org/
events or call Sherry Esteves at
609-393-7707, ext. 219.
Quote of
the Month
“We can only have the
government we can
afford.”
--State Treasurer Andrew Sidamon-Eristoff at
NJBIA’s Meet the Decision Makers event.
NJBIA Urges Senate Committee
Not To Weaken UI Reforms
The Legislature should not weaken a law approved by the Legislature and Governor in 2010 to help
stabilize New Jersey’s insolvent
Unemployment Insurance (UI)
fund, NJBIA told the Senate Labor
Committee at a March 3 hearing.
The law prohibits employees fired
for misconduct from collecting
unemployment benefits.
In her testimony, Senior Vice
President Melanie Willoughby
said: “These reforms put New
Jersey’s unemployment insurance
system in line with 40 other
states.”
The current law, which is estimated to save $175 million annually, would return New Jersey’s UI
system to solvency more quickly.
It uses a three-tiered system to
deny or delay benefits to employees who are fired for misconduct.
After years of taking employers’ unemployment insurance
payroll taxes to pay for general
expenses, the state has a UI fund
that is broke and deeply in debt. For more information, contact
Stefanie Riehl at sriehl@njbia.org.
Bill Would Prevent $750 Million
UI Tax Hike in 2011
In the first steps to avoid a $750 million Unemployment Insurance
(UI) payroll tax increase on July 1, 2011, lawmakers have introduced
legislation to phase in the increase over several years. The bills, S-2730
(Madden, Doherty) and A-3819 (Egan), would also change the level of UI
reserves required to prevent dramatic tax increases in the future. The bills
have been referred to their respective labor committees.
NJBIA strongly supports the measures, which would implement
recommendations from the state Unemployment Insurance Task Force.
Under state law, if the UI fund does not have enough money to pay
benefits, payroll taxes on employers increase automatically. The fund has
been broke since last March, forcing it to borrow $1.75 billion from the
federal government. If the Legislature does not act, New Jersey employers would be hit with a payroll tax on July 1, 2011, costing an average of
$300 per employee.
A-3819 and S-2730 would provide a graduated phase-in of the
increase in UI tax rates in fiscal years 2012 and 2013. These bills would
make the July 1 increase, which would average about $130 per employee,
more manageable.
The legislation would also raise the UI fund reserve ratios to allow the
fund to accumulate a large enough balance so that future recessions will
not trigger large, automatic tax increases.
The new reserves would still permit the fund to reduce UI taxes on
employers as reserves accumulate, but they would be less subject to fluctuation. The new reserve ratio triggers would have no effect on tax rates
until the UI fund has a positive balance. For more information, contact Stefanie Riehl at sriehl@njbia.org.
3
Business Voice
State Treasurer Tells NJBIA Members that
Growing the NJ Economy is a Top Priority
Taxes definitely have an impact
on businesses and the economy,
and the Christie Administration
is determined to lower them even
though New Jersey faces tough
challenges in the upcoming budget, Treasurer Andrew SidamonEristoff told NJBIA members at
a March 23 Meet the Decision
Makers event.
The Treasurer said the Christie
administration wants to make New
Jersey more competitive. “In order
to do that, we have to change the
negative perception of New Jersey,
and we have to cut taxes.”
The Administration understands that high taxes discourage
business investment and are a drag
on the state economy.
Despite the current fiscal challenges facing New Jersey, Governor
Christie’s Fiscal 2012 budget proposes $200 million in business tax
relief.
Included in the tax-reform
package is single-sales-factor
reform, which would change how
the corporate business tax is calculated. The new formula would
no longer penalize businesses that
invest and have employees and
facilities in the state.
The Governor also proposed
a 25 percent reduction in the
minimum tax on S-corporations.
Other tax changes in the Governor’s budget would give related
businesses the ability to offset
business income with losses from
different business entities and carry
forward unused losses for 20 years
for businesses that pay the gross
income tax. These tax changes
will send a positive message to the
business community.
“It is long past time for New
Jersey to get serious about economic growth,” Sidamon-Eristoff
said.
To relieve tax pressure,
Sidamon-Eristoff said, New Jersey
Profiles
also had to get its fiscal house in
order. “We can only have the government we can afford,” SidamonEristoff said.
NJBIA thanks its
Meet the Decision
Makers Sponsors
Partner sponsor
NJM Insurance Group
Premier sponsors
Connell Foley LLP
Verizon
Grand sponsors
AT&T
Horizon Blue Cross
Blue Shield of NJ
United Water Event sponsors
New Jersey Society of CPAs
KPMG LLP
6th Annual
in Success
An Advertising Section with a special rate for NJBIA members
In August 2011, NEW JERSEY BUSINESS, the monthly magazine
of the New Jersey Business & Industry Association, will publish the
sixth annual Profiles in Success. This special section provides you
with the opportunity to present your company’s story to the complete
membership of the NJBIA and the magazine’s 102,000* readers.
NEW JERSEY BUSINESS magazine will format your story in an
attractive full-color layout. You’ll be able to use this advertorial to
market your organization to a key audience of business and government
leaders who want to know what makes your company a success.
For rates and additional information, call Vincent Schweikert at 973882-5004, extension 110. Closing date for space reservations is June
24, 2011, with copy and photograph due by June 30, 2011.
*Based on a pass-along readership of 4.01
4
August 2011
NEW JERSEY BUSINESS MAGAZINE
310 Passaic Avenue, Fairfield, NJ 07004
Tel: 973-882-5004 Fax: 973-882-4648
info@njbmagazine.com
43% DISCOUNT
Off Our 4-color Page Rate
Based on advertiser supplying editorial and photograph
April 2011
NJ Manufacturers Show How They Stop Planes
from Crashing and Satisfy Our Sweet Tooth
NJ manufacturers stop airplanes from skidding off runways.
They help power the space shuttle. They satisfy our sweet tooth,
furnish our offices and help us clean our homes. They even
make cowboy hats! Twenty-two New Jersey manufacturers were
present at the State House on March 14 for NJBIA’s Made in New
Jersey Day where legislators and the public got to see how these
and other products are made right here in the Garden State.
Made in New Jersey Day, organized by the New Jersey
Business & Industry Association (NJBIA), celebrates New Jersey’s manufacturing industries and their importance to the state
economy. The 22 manufacturers exhibiting their products told
their stories to Lt. Governor Kim Guadagno, Senate President
Stephen Sweeney, State Treasurer Andrew Sidamon-Eristoff and Senate President Stephen Sweeney (right) hears about manufacturing in New Jersey from Cliff Lindholm III, president and CEO
many state legislators. State officials also learned about the chalof the Falstrom Company in Passaic.
lenges manufacturers face doing business in New Jersey.
“Manufacturing in New Jersey has a great story to tell, and
Made in New Jersey Day is our chance to tell it,” NJBIA President Philip Kirschner said. “In the face of fierce
global competition and a really difficult recession, our manufacturers continue to provide good jobs and benefits.
They are incredibly important to this state and its economy.”
New Jersey manufacturers currently employ 253,900 workers in New
Jersey and directly support more than 100,000 jobs in other industries.
NJBIA thanks its
Companies exhibiting and/or contributing
products to a sample products bag were:
Made in NJ Day
Sponsors
Partner sponsor
Adantex USA, Inc.
Maywood Furniture Corp.
NJM Insurance Group
ConocoPhillips Bayway Refinery
Metaline Products Co. Inc.
Premier sponsors
Concord Products Co., Inc.
McCain Foods USA – Ellio’s Pizza
Cowabunga Ice Cream
National Manufacturing Co., Inc.
Connell Foley LLP
Verizon
Dr. Pepper Snapple Group
NuStar Energy, LP
Platinum sponsor
Engineered Arresting Systems
Corp.
Pacor, Inc.
Paris Business Products
Event sponsors
EVS Metal
Power Magnetics Inc.
Falstrom Company
Reckitt Benckiser, Inc.
General Magnaplate Corporation
Sea Breeze Fruit Flavors, Inc.
General Mills
Serratelli Hat Company
General Pencil Company
Kontos Foods, Inc.
Sunny Delight Beverages
Company
Kraft Foods
TDK-Lambda Americas
LaMonica Fine Foods LLC
V.E.P. Manufacturing
Lee Linear
Widmer Time Recorder Co., Inc.
ConocoPhillips Bayway Refinery
Engineered Arresting Systems
Corp. (ESCO)
Falstrom Company
General Magnaplate
Corporation
Hermitage Press Inc.
McCain Foods USA –
Ellio’s Pizza
NuStar Energy L.P.
TDK-Lambda Americas Inc.
Gibbons P.C.
55
Business Voice
ASK THE EXPERTS!
By David Brogan,
Vice President, Taxation & Economic Development
New Sales Tax Rules for Companies in UEZ Zones
Q.
As an Urban Enterprise
Zone (UEZ) business, do I still
have to apply for a rebate to get a
sales tax exemption for purchases
used in my business?
A.
No. Governor Chris
Christie recently signed a bill
eliminating the burdensome rebate
program for certain purchases
made by qualified UEZ businesses.
It took effect April 1.
The sales tax exemption
applies to goods and services
Tax Reform Bills
purchased for consumption exclusively at qualified UEZ businesses.
Thanks to the new law, all
qualified UEZ businesses will
now get the point-of-sale sales tax
exemption on the tangible personal
property purchased for use by their
businesses in the UEZ, regardless
of their size. Specific exclusions
are still in place for most businesses, such as the purchase of
motor vehicles, energy, telecommunications and utilities. Under the new law, the rebate
(cont’d from pg. 1)
a company could offset gains in
an LLC from losses in a partnership. Under current law, losses
can only be used to offset income
generated from the same business
entity.
The Governor has proposed
similar changes in his FY 2012
budget.
Other tax changes have been
included as well. Christie has
proposed lowering energy bills
by eliminating TEFA (Transitional Energy Facilities Assessment), an outdated tax on energy
costs that was supposed to have
expired years ago.
The Governor also proposed
reducing the minimum S
corporation tax by 25 percent
and increasing the estate-tax
exemption from $675,000 to
$1 million. Both changes would
put New Jersey tax policy more
in line with policies in other
states. His budget also calls
for larger corporate tax credits
for research and development
expenditures. NJBIA supports all
these proposals.
For more information, contact David Brogan at dbrogan@
njbia.org or Jaime Reichardt at
jreichardt@njbia.org.
process is
eliminated
for nearly all
UEZ businesses. The refund process will
still apply to established businesses
in UEZ zones that have not been
qualified as a UEZ business by the
state. Until a business is certified
as a qualified UEZ business, the
refund process still applies. In addition, the point-of-sale exemption
cannot be applied retroactively.
Visit www.nj.gov/treasury/
taxation/uez.shtml to get more
information from the NJ Division
of Taxation.
Q.
What do I have to do to
take advantage of this benefit?
A. Under the new law, all
UEZ businesses will be eligible for
a sales tax exemption; however,
you will need to be certified by
the state as a “qualified” UEZ
business. Existing “small qualified
businesses” may continue to issue
valid UZ-5-SB certificates to their
suppliers until such certificates
expire.
Contact David Brogan at
609-393-7707, ext. 236 for more
information.
NJM’s VIP (Visiting Insurance Professionals) Program
A FREE value-added benefit from NJM available to NJBIA members!
Representatives can assist your employees with their Auto and Homeowners insurance needs.
3 Benefits fairs
3 Informative seminars for large groups
3 Staff a table in your cafeteria or employee lounge 3 One-on-one employee meetings
3 Free on-the-spot quote comparisons
3 Flexible hours available
Call today to schedule a visit! 1-800-232-6600 Ext. 2046 or e-mail hjones@njm.com
6
April 2011
NJBIA Programs & Benefits
Tuesday, April 26
Hot Legal Topics: Rules Every Business
Needs to Know
• Location: The Wilshire Grand Hotel,
West Orange (Exit 7, Rt. 280 West)
• Time: 8:30 a.m. – 1:00 p.m.
• Cost: $129 pp for NJBIA members /
$169 for nonmembers
• Contact: Katie Wittkamp, ext. 239
Protect your business! At this
seminar, find out about regulating
employees’ use of social media,
what you need to know about
disciplining and dismissing employees, and the new crackdown
on misclassifying employees. The
rules have changed. Find out how
from these top HR attorneys: Carolyn Buccerone of Genova, Burns &
Giantomasi; Kathleen Connelly of
Lindabury, McCormick, Estabrook
& Cooper; M. Trevor Lyons of
Connell Foley; and Susan Nardone
of Gibbons PC.
Wednesday, May 4
Meet the Decision Makers: Transportation
Leaders
• Location: Forsgate Country Club, Monroe
Twp. (Exit 8A, NJ Turnpike)
• Time: 7:45 a.m. – 10:00 a.m.
• Cost: $79 pp for NJBIA members /
$129 for nonmembers
• Contact: Katie Wittkamp, ext. 239
Learn about the Governor’s plan
for the Transportation Trust Fund
from James Simpson, Transportation Commissioner; Bill Baroni,
Port Authority Deputy Executive
Director; John Wisniewski, Assembly Transportation Committee
Chairman; and Sean Kean, Senate
Transportation Committee Member.
Registering couldn’t be easier!
Visit www.njbia.org/events to register online or
call the NJBIA contact listed at 609-393-7707.
Friday, May 13
What You Need to Know About Federal
Healthcare Reform
• Location: Forsgate Country Club,
Monroe Twp. (Exit 8A, NJ Turnpike)
• Time: 8:30 a.m. – 12:30 p.m.
• Cost: $129 pp for NJBIA members /
$169 for nonmembers
• Contact: Katie Wittkamp, ext. 239
This seminar will discuss how
the federal healthcare reform
law will affect your business and
employees. Find out from a panel
of experts what the law’s impact
will be on New Jersey’s healthcare
system and business community,
and what you need to be doing
now to comply.
Tuesday, May 17
Meet the Decision Makers: Majority and
Minority Leaders
• Location: Forsgate Country Club, Monroe
Twp. (Exit 8A, NJ Turnpike)
• Time: 7:45 a.m. – 10:00 a.m.
• Cost: $79 pp for NJBIA members /
$129 for nonmembers
• Contact: Katie Wittkamp, ext. 239
Senate Majority Leader Barbara
Buono, Senate Republican Leader
Tom Kean, Assembly Majority
Leader Joe Cryan, and Assembly
Republican Leader Alex DeCroce
have been invited to speak about
the state’s top business issues and
the upcoming election.
Wed., June 15 ELC Dinner
Governor Chris Christie
Keynote Speaker
Friday, June 3
New Good Neighbor Awards Luncheon
• Location: The Pines Manor, Edison
(Route 27)
• Time: 11:45 a.m. – 2:00 p.m.
• Cost: $79 pp (tables of 10 available)
• Contact: Katie Wittkamp, ext. 239
At this luncheon, awards will
be presented to New Jersey
companies that have recently
built outstanding commercial or
industrial facilities, improving the
economy as well as the landscape
of New Jersey. Don’t miss this
opportunity to network with New
Jersey’s top builders, developers,
architects and contractors!
Tuesday, July 19
Golf & Tennis Day
• Location: Forsgate Country Club,
Monroe Twp. (Exit 8A, NJ Turnpike)
• Time: 8:00 a.m. Shotgun Start
• Contact: Katie Wittkamp, ext. 239
This major business outing, which
attracts 200 golfers each year,
will feature a morning shotgunscramble. Continental breakfast
will begin at 7:00 a.m. followed by
the 8:00 a.m. tournament start, a
1:00 p.m. cocktail reception, and
lunch from 2:00 – 3:00 p.m. A
round-robin tennis tournament
will be held at the East Brunswick
Racquet Club starting at 8:00
a.m. The cost per person is $270
for golf and luncheon, $160 for
tennis and luncheon, and $89 for
luncheon only. Don’t miss this fun
networking event!
See page 8 for details!
7
New Jersey Business & Industry Association
Presents the
Employer Legislative Committees of New Jersey
2011 DINNER
Sponsored by NJM Insurance Group
Featuring keynote speaker
Hon. Chris Christie
Governor of New Jersey
Wednesday, June 15, 2011
Westin Princeton at Forrestal Village
Route 1, Princeton, NJ
Cocktails 6:00 p.m. — Dinner 7:00 p.m.
$150 per person
$1,500 for reserved tables of 10
Sponsored by:
Stewardship, Integrity and Service.
ELC DINNER REGISTRATION
Wednesday, June 15, 2011 • Westin Hotel, Route 1, Princeton, NJ • 6:00-9:00 p.m.
1 Registration Information:
Yes, I would like to attend. Send me ________ tickets for $150 per
person. $1,500 for reserved tables of 10.
______________________________________________________________________
Name
______________________________________________________________________
Title
______________________________________________________________________
Company
______________________________________________________________________
Address
______________________________________________________________________
City
State
Zip + 4
(________)________________________ (________)__________________________
Phone
Ext.
Fax
______________________________________________________________________
E-mail
2 Registration Fee: $150 per person
$1,500 per reserved table of ten
3 Payment Options:
❐ Check enclosed for $__________, made payable to NJBIA.
Credit Card: ❐ AMEX
❐ MasterCard ❐ VISA
Account #___________________________________________________________
Dollar Amount $_________________
Expiration Date_________ / __________
____________________________________________________________________
Name of Cardholder (print)
____________________________________________________________________
Signature (required)
____________________________________________________________________
Credit Card Billing Address (required)
•Payment is required in advance.
•Fax registration to 609-503-9105.
•Mail to NJBIA, Attn: Sherry Esteves, PO Box 230, Trenton, NJ 08602-0230.
•Cancel by June 8, 2011, to receive a refund. Substitutions welcome.
•Register online at: www.njbia.org/events.
•Information: Call Sherry Esteves at 609-393-7707, ext. 219.