STATE'S ECONOMY WILL NOT IMPROVE WITH A $10,000 THRESHOLD FOR SALES TAX RELIEF

Legislation recently introduced in the General Assembly by Democrat Assemblymen Nelson Albano and Matthew Milam, who represent Cape May, Atlantic and Cumberland counties, that would reduce the sales tax rate on the purchase of certain goods and services over $10,000 by half between October and December will have little impact on turning around New Jersey’s economy said Assemblyman Vincent Polistina, R-Atlantic.

Polistina is a prime sponsor of the Consumer Relief Act legislation that was introduced last February which would reduce the rate by half on any item subject to the sales tax. The bill, which is also sponsored by Assemblywoman Caroline Casagrande, R-Monmouth and Mercer, was referred to the Assembly Appropriations Committee but has yet to be heard.

“The number of consumers who would benefit from the bill proposed last week would be minimal,” stated Polistina. “During the holiday season, most shoppers are buying multiple gifts. Not too many are making a purchase on one item for that amount. I don’t believe this legislation will provide an incentive that will spur shopping, and it certainly will only help a finite amount of retailers.

“In the interest of fairness, the Appropriations Committee should consider both bills and debate which one will be most helpful and incentivize consumers,” continued Polistina. “New Jersey has a long way to travel until it reaches an economic recovery, and I am confident that the Consumer Relief Act is a better route to take than what was recently offered.”