VAN DREW BILL TO EXEMPT OUT-OF-STATE TOUR BUS OPERATORS FROM BUSINESS TAX ADVANCES : News Room : The Van Drew Team for Change : Jeff Van Drew, Bob Andrzejczak and Bruce Land
VAN DREW BILL TO EXEMPT OUT-OF-STATE TOUR BUS OPERATORS FROM BUSINESS TAX ADVANCES
TRENTON – Legislation sponsored by Senators Jeff Van Drew and Jim Whelan to exempt from corporate business taxes out-of-state bus companies that bring tourists to destinations within New Jersey – such as Atlantic City casinos – was unanimously approved yesterday by the Senate Budget and Appropriations Committee.
The idea behind the bill (S-1124) is to exempt bus companies that carry passengers, such as senior citizens, from Philadelphia, New York City or Virginia to Atlantic City. The legislation is intended to encourage more business, travel and tourism to Atlantic City.
“The out-of-state buses which carry casino patrons to Atlantic City represent a vital part of our local economy, bringing thousands of tourists to the resort each year,” said Senator Van Drew (D-Cape May/Atlantic/Cumberland). “We need to do our part to make sure the buses continue to run, and that bus companies aren’t hampered by New Jersey’s tax structure when they’re delivering much-needed patronage to our casinos.”
“Out-of-state bus companies bring tourists into our city, where they spend money at our shops, our restaurants and our casinos,” said Senator Whelan (D-Atlantic). “Especially given the competition Atlantic City is experiencing from neighboring states, we should be incentivizing these kinds of businesses, not making it more costly for them to operate here.”
The “Corporation Business Tax Act” was updated in July 2002 to extend the reach of the New Jersey corporation business tax to companies that derive income from New Jersey sources – which included out-of-state tour bus companies.
Since then, due to a range of factors, visitors to Atlantic City by charter bus have each year declined. From 2008 to 2009 alone, visitors by charter bus dropped 12.8 percent, from 4.9 million to 4.3 million, according to statistics from the South Jersey Transportation Authority’s 2009 Annual Report. By comparison, in 2001, about 8 million people traveled by bus to Atlantic City, according to the SJTA.
The bill would limit the corporation business tax so it is not imposed on a corporation whose only connection with the state is the delivery of passengers to a New Jersey location.
The committee approved the measure by a vote of 13-0. It now heads to the full Senate for consideration.