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October 29, 2010 I have been getting a stream of phone calls from members concerned about a notice you’ve received on a new tax law. While the idea of following yet ANOTHER regulation may give you a headache, I assure you there’s nothing to this. In fact, for once it seems that Trenton has actually made things a tiny bit EASIER for you (don’t worry – they’ll do something else soon enough to screw it up, so enjoy the reprieve while you can). Essentially the new law does two important things: First, it will move you from your current motor fuel license to a new motor fuel license in 2011. Unless you get a special notice from the Division of Taxation, your license will be converted automatically. However, the expiration date of that license will remain the same. That means that when you get the actual license please make sure that the expiration date is identical. That’s right – this isn’t a license renewal, it’s merely a migration from one type to another. The only hiccup in this is for any member who sells liquefied petroleum gas (LPG). If you sell LPG at your station, you must file an MFA-3 form to revise your status and refuse the license conversion. Secondly, the new law will streamline the method by which taxes are collected on diesel fuel. As NJGCA has previously reported in past editions of the Road Warrior, diesel fuel will now be taxed at the rack, just as gasoline is. This will not only help save you the headache of a monthly submission to the Division of Taxation, but will be one less expense you have to put out each month. In addition, you won’t need a separate license to sell diesel fuel (or any other special fuels) like you did in years past. Nevertheless, in converting from one tax scheme to another, you have some leg work to do. Your license to sell diesel will expire on December 31, 2010 and you are required (that means you have NO CHOICE) to file a final Seller User of Special Fuels Report before January 20, 2011 for any diesel or special fuel sold in December. You are also required to file a MFA-10 form one time to pay taxes on any left over, untaxed diesel or special fuels you have left in your tanks. The form is due no later than January 31st, 2011. Yes, those taxes are due in June, but if you pay the amount when you send the form in before January 31, 2011, you will receive a 10% discount. Even if you have no untaxed diesel left, you still must send a MFA-10 form; just mark ‘ZERO’ in the appropriate spaces. MAKE SURE TO TAKE YOUR DEAD STORAGE SPACE INTO ACCOUNT! Don’t get taxed on fuel you don’t have. The Division of Taxation will send you all the required documents, but if documents don’t arrive by the beginning of December, please give NJGCA Government Affairs Assistant Jim McCabe a call so he can assist you. Recently those of you participating in the vehicle inspection program should have received a VID message regarding the implementation of the biometrics system. Officially known as the ‘Authentication Device’, this technology was delivered with your new inspection equipment but hasn’t been activated. The purpose of the biometric system was to prevent fraud and insure that only the shop’s licensed inspector was doing the inspection. Unfortunately, every PIF location had to purchase this device in March 2010 and has been paying a monthly fee every since – while it sits collecting dust. Of course, Parsons and SGS’s are at fault since the device hasn’t worked since the day it was delivered. In an ironic twist, the device is so ‘advanced’ it cannot read inspectors’ fingerprints if your hands are too cold – or too hot n’ sweaty or anything in between. And you thought Goldilocks had it bad, eh? She obviously never worked with SGS’s equipment before! To overcome this debacle, MVC went back to using PIF license numbers while working out the kinks in the system. However, MVC now insists you use the biometric scanner immediately. As outlined in the VID message, MVC advises you that it may take a few extra minutes to scan your fingers with the colder weather ahead. If you have any problems with the scanner, call SGS at 1-888-665-2009. For shops with new inspectors, you will need to be fingerprinted in order to gain access to do inspections. Please contact Parsons at 1-888-NJMOTOR and a representative will provide the locations/times for fingerprint collection. No fee is required, but you MUST bring a valid photo driver license AND your original NJ State Inspector's License.
You may also contact the regional PIF offices with any additional questions at: Advancements in automotive technology are ever changing, and new developments today will help the industry meet the needs of tomorrow. No matter it’s hybrid cars, fuel celled vehicles or electric transportation, no one denies tomorrow’s motorists will drive a differing array of vehicles. But what about changes to the internal combustion engine (ICE) and your ability to service your customers’ motor? If the news out of Detroit and Tokyo are any indication, your job may have just gotten a bit harder. Just as we have fought automakers to pass Right to Repair in Trenton to help you gain access to needed technical information, a new battle against the industry is about to begin. Under the guise of squeezing more fuel economy, better protecting engine wear, and increasing power out of the ICE, automakers will begin to use a new generation of oil to lubricate their engines. Known as GF-5 or SN, these new semi-synthetic oils are now being used in 2011 GM and Honda vehicles. In fact, GM has gone so far as to create its own variant that it has trademarked as Dexos1. Industry leaders say that this new types of oil is essential as engine size shrinks and automakers use superchargers or turbochargers to get more power from smaller engines. They also claim that these new oil blends will last longer and are more environmentally sensitive. It all sounds very impressive, but how will this hurt you? For starters, the new types of oil may stretch oil changes to every 10,000 miles, which means your customers will be frequenting your shops less. Secondly, some of these new blends such as GM’s Dexos1 (Dexos2 is used for light-duty diesel engines) will be proprietary. Honda, on the other hand, is encouraging its customers to stay away from ‘aftermarket parts and products’ and threatens that if they are not used, warranties may be voided. That means that, just as with the case for Right to Repair, many of your customers will be forced to go back to dealers for servicing. Thirdly, the price of oil changes will rise due to the new formulation – which means you may have a problem explaining why more expensive oil is needed for the typical oil change. Click HERE to read a recent Detroit News article on this. The bottom line is that this is a threat to your business. If oil changes become more expensive, happen less frequently, and proprietary licensing prevents customers from visiting your shops, many small establishments will go out of business. We will update you as more information becomes available, but it is important for you to be aware of what’s going on and to educate yourself on how this may affect you in the very near future. Keep in mind that any efforts or strategy we employ in combating this problem will be hyper sensitive to the public. If you were to ask the average motorist to pony up a few more dollars but get three times the life out of an oil change, chances are they’ll readily agree. A recent poll conducted by NJBIZ, a statewide business publication, found that nearly half of readers supported raising the gas tax to pay for infrastructure repairs. Only 3% favored additional borrowing as a solution. While Governor Christie has stated that he does not support a gas tax increase, there are many who feel that this will be the only alternative to increasing tolls or borrowing money to pay for repairs. And with the state’s fiscal crisis and job losses looming large in the eyes of residents, there will undoubtedly be a renewed push to increase the tax. In fact, illustrating this new found sense of fiscal discipline and responsible spending, reader Kathy Janton stated, “Five cents more on all the fuel purchased can add up to a lot of finished roads. But it has to be for funding roads that we drive on, tunnels we drive through, bridges we drive over — not higher salaries, more benefits or pensions.” And that’s the kind of public opinion we will have to fight against if we are to stop any Gas Tax increase. While it has been long recognized that state officials have robbed the Transportation Trust fund over the years to pay for other projects, current residents will ultimately pay the price. The average resident polled isn’t a zealot or ideologue, but someone who maybe willing to sacrifice a little up front to solve an alarming problem. That doesn’t make them bad or good, but merely uneducated as to how a Gas Tax increase may inadvertently hurt them in the long run. You can see the poll results for yourself by clicking HERE Lastly this week, we have learned that MVC is stepping up enforcement on handing out penalties to Emission Repair Facilities and Technicians that have expired licenses. As for June 30th, there are 1287 expired Emission Repair Technician licenses. If you are one of these technicians and doing emission repairs, there’s a very good chance you’ll be caught by MVC and fined heavily. Please stop and take the proper steps to re-authorize your license or run the risk of getting a violation.
Furthermore, 254 Emission Repair Technicians will have their licenses expire on December 31, 2010. Those of you who will be affected still have the opportunity to be recertified for Section 6 “OBD II Monitoring Failures”, Section 7 “Light-Duty Diesel Vehicle Technologies and Testing” and New Jersey State Specific Informational Course.
Regards,
Contact us and use our easy contact form to request the complete
1-800-440-8265
NJGCA WANT AD CLASSIFIEDS If you have at least 2 bays available, please contact Jerry at 973-252-5151 or email him at Sweetmotors@optonline.net
NEW TRAINING CLASSES ADDED!!
CALL FOR FUTURE CLASS SCHEDULE INFORMATION
ERT Re-Certification Class In order to re-certify, ERTs must complete Section 6 “OBD II Monitoring Failures”, Section 7 “Light-Duty Diesel Vehicle Technologies and Testing” and New Jersey State Specific Informational Course. NJGCA will be scheduling day and evening courses to address the needs of the ERT community. NJGCA Members will receive a reduced class price for attending, but we must hear from you to guage interest and set up a class schedule. Take advantage of this great opportunity to save money and re-certify for ERT License TODAY!
**To Register call Debbie Hill 973-376-0066 x 203 or debbie@njgca.org**
POLITICAL PARTICIPATON: THE NJGCA PAC
Ensuring our friends in the legislature are re-elected and advocating for our agenda in Trenton are of utmost importance to the agenda of NJGCA. It is for this reason that your Association has established the NJGCA PAC. For too long, the weight of funding our Political Action Committee, the arm of the Association responsible for political donations, has rested upon the shoulders of a few. This is not fair to them, and it is not fair to many of you who are relying on the benefits of good legislation being passed in Trenton. To truly understand the importance of fundraising for our allies, let’s look back upon the overwhelming successes of the last year: NJGCA successfully lobbied against BELOW COST SELLING. If approved, BELOW COST SELLING would have cost each of you thousands of dollars and put many of you out of businesses. NJGCA leaned on some of our friends in the Assembly and literally had the bill pulled off the floor on the day it was scheduled to be voted on. Our friends in the Legislature helped us get this accomplished. NJGCA made history and led the charge to pass the most comprehensive protection of franchisees in decades with FIRST RIGHT OF REFUSAL legislation. FIRST RIGHT OF REFUSAL passed only because NJGCA and dealers throughout the state were able to lean on several friends in the Assembly and the Senate. NJGCA has been rallying support for RIGHT TO REPAIR over the last two years among key legislators. This would end the practice of car manufacturers denying you the codes necessary to complete the repairs you make on your customers cars. Every state has tried to pass RIGHT TO REPAIR and no state has even been able to get the legislation out of committee. Because of our friends in the Legislature, NJGCA has been successful in getting this bill passed by the Assembly and now awaits a vote in the Senate. I am asking some of you as individuals to make a contribution and attend a fundraising event sponsored by one of our friends in the Assembly. However, we will not be able to host events for all of our friends, so the NJGCA PAC will have to make contributions. You will be receiving letters soon from the NJGCA PAC asking you to make contributions. If every member contributes just $100.00 we will be able to provide the help necessary to ensure victory for our allies.
PLEASE SEND YOUR CONTRIBUTIONS TO: I understand that times are tough for all NJGCA members, but this is just as important as any battle we have fought in the past. We have made great progress in Trenton. I hope that you will answer the call.
NEWS AROUND THE STATE
10/28/2010:
10/21/2010: |
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