Follow NJGCA:
   

Sal Risalvato
Executive Director
 

 

9/1/20
Small-Business Failures Loom as Federal Aid Dries Up
The United States faces a wave of small-business failures this fall if the federal government does not provide a new round of financial assistance - a prospect that economists warn would prolong the recession, slow the recovery and perhaps enduringly reshape the American business landscape. As the pandemic drags on, it is threatening even well-established businesses that were financially healthy before the crisis. If they shut down or are severely weakened, it could accelerate corporate consolidation and the dominance of the biggest companies. . .Now that aid is largely gone, even as the economic recovery that took hold in the spring is losing momentum. The fall will bring new challenges: Colder weather will curtail outdoor dining and other weather-dependent adaptations that helped businesses hang on in much of the country, and epidemiologists warn that the winter could bring a surge in coronavirus cases. As a result, many businesses face a stark choice: Do they try to hold on through a winter that could bring new shutdowns and restrictions, with no guarantee that sales will bounce back in the spring? Or do they cut their losses while they have something to salvage?

8/31/20
Ciattarelli Hits Murphy Over Gas Tax Hike
Republican gubernatorial candidate Jack Ciattarelli launched an attack at Gov. Phil Murphy after the incumbent said he was unaware of a 9.3 cent increase to the state's gasoline tax announced Friday when he delivered his revised budget address last Tuesday. "When asked if he was aware of the gas tax increase when he presented his budget, his response was: '... I knew of it sometime - maybe a day or two - before, I can't actually recall, but it has nothing to do with the budget. It's not in my control. I have literally nothing to do with it,'" Ciattarelli said. "This is outrageous."

8/31/20
California Bans Menthol Cigarettes
The California legislature Friday passed a ban on the sale of menthol cigarettes following a 34-0 vote in the state Senate, the Wall Street Journal reports. The ban also covers all other flavored tobacco products, including e-cigarettes. Gov. Gavin Newsome has until Sept. 30 to sign or veto the bill. The ban would take effect on January 1. In June, Massachusetts became the first state to prohibit the sale of flavored tobacco products at convenience stores, gas stations and other retailers. The products can only be purchased for on-site consumption at licensed smoking bars. The U.S. House of Representatives in March passed a bill banning traditional flavored tobacco products-menthol cigarettes, flavored cigars and smokeless tobacco. But the Republican-controlled U.S. Senate hasn't introduced a companion bill. "The more of the U.S. population already under a menthol ban, the more political cover for Congress to do the same-which I think could happen in 2021 if the Senate flips," Stefanie Miller, managing director at investment adviser FiscalNotes Markets, told the Journal.

8/30/20
Why Your Gas Tax Will Rise 9.3 Cents A Gallon -- And N.J.'s New Ranking Compared To All The States
In just over a month, drivers will shell out more than 50 cents for state taxes on every gallon of gasoline they pump in New Jersey. Only three states charge more. . . Sal Risalvato, executive director of the New Jersey Gasoline, C-Store, Automotive Association, warned the 9.3-cent increase will devastate station owners, particularly those along the border with New York. "We have zero competitive advantage over New York," he said. "We've already lost enough gallons to them from previous increases." Risalvato has warned the state is caught in a loop wherein higher gas taxes here depress consumption, which then forces state officials to levy fresh gas taxes each fall. "It is costing New Jersey $190 million a year in revenues that we've lost because of gallons that are going to, mostly New York, but New York and Delaware," he said.

8/30/20
Oroho Tells Murphy To Use His Executive Power To Stop Gas Take Hike
The top Republican on the State Senate Budget and Appropriations Committee wants Gov. Phil Murphy to use his vast executive authority to stop a gas tax increase his administration announced on Friday. . . "It's almost unbelievable for the governor to now suggest that preventing a gas tax increase when many families are in economic crisis is the one thing he can't do by executive order," Oroho said.  "Considering his own executive actions kept people home and off the roads artificially depressing gas consumption, drivers shouldn't be penalized."

8/28/20
Treasury Announces Change in Gas Tax Rate Effective October 1
After a thorough review of fuel consumption statistics and consultation with the Legislative Budget and Finance Officer, the Department of the Treasury announced on Friday that lower fuel consumption trends, which have been exacerbated by the COVID-19 pandemic, will necessitate a gas tax increase of 9.3 cents per gallon in order to ensure compliance with the 2016 law that requires a steady stream of revenue to support the state's Transportation Trust Fund (TTF) program. Under the 2016 law (Chapter 57) signed by Governor Christie, New Jersey's TTF program is required to provide $16 billion over eight years to support critical infrastructure improvements to the state's roadways and bridges.  In order to ensure the state has the funds necessary to support these projects, the law dictates that the Petroleum Products Gross Receipt (PPGR) tax rate must be adjusted accordingly to generate roughly $2 billion per year. 

Each week, the Energy Information Administration publishes a list of average gasoline prices for the previous three weeks. NJGCA will begin including this list with the Weekly Road Warrior. Remember, these prices are reflective of self-serve everywhere except NJ.