New Jersey - Digital Publishing

oUr poinT of VieW
film, UeZ
cuts come
as no shock
Recommendations made
to the Chris Christie
team on tax incentives,
and their responses, are telling
for New Jersey businesses —
particularly those in fi lm or in
one of the state’s urban enterprise
zones, which the administration
wants to end.
That’s hardly a surprise:
The fi lm tax credit, in particular,
has been spotted walking
around with a bull’s-eye on its
chest. The report found the program
paid for itself, though the
state contests the fi ndings, saying
an end to tax credits won’t
end fi lming in New Jersey. But
studio owners say business has
been much quieter since the
state froze the credits, and the
program was credited with creating
more than 900 jobs, paying
an average of about $47,000, in
2009. But it’s best to judge the
credits closer to 2015, when the
program sunsets.
The UEZ program, on the
other hand, was labeled a complete
bust in the report. The
major attraction — allowing
retailers to charge half the sales
tax — gives an unfair advantage
to these cities, which invest the
difference in sales tax collection
into local restoration work. Suburban
downtowns do this sort
of work without getting a break
on the sales tax. And there are
now nearly three dozen UEZs in
the state, including tiny Hudson
County, which has seven
UEZs in its 12 municipalities.
Why not just waive the sales tax
outright for the entire county?
■ ■ ■
In January, responding to
Christie’s ill-advised decision
to recruit executives from Illinois,
we wondered: “What
would Honest Abe say?”
Well, the Land of Lincoln
has responded, with an ad campaign
in New Jersey media touting
the Garden State’s horrid tax
climate — which is really going
to give pause to the two business
owners who were thinking
of relocating here for the taxes.
Continuing its rub-your-nosein-it
campaign, Illinois is set to
follow that with commercials
on NJN listing the ways the
Bulls are better than the Nets.
OPINION
leTTerS To THe eDiTor
eDA is no rubber stamp
I applaud NJBIZ’s in-depth coverage of the
EDA’s award of an Urban Transit Hub Tax Credit
for Panasonic’s proposed move to a new offi ce
building in downtown Newark. New Jersey’s
business paper of record should keep close tabs
on the administration of this and other economic
incentive programs.
However, NJBIZ says this grant “… goes
against the mission of the Urban Transit Hub
program, which was designed to encourage urban
developers and tenants to make big capital
investments in long-suffering cities” (“A good
idea is becoming a giveaway,” Our Point of
View, Feb. 21).
In fact, this project fi ts that stated mission
like a glove: it is a major investment in
new construction, at prevailing wages, in a
city, and shifts commuting from cars toward
mass transit. This project creates signifi cant
new ratables for Newark and Essex County.
This project represents hundreds of well-paying
construction jobs desperately needed in
our still stagnant economy.
Moreover, the other objection expressed
by some — that the UTHTC program did not
envision moving jobs from one location to another
in the state — is dead wrong.
The Legislature revisited and substantially
revised the UTHTC in 2009, making
clear that a “credit shall not be reduced if [a
business] relocates to an urban transit hub
from another location or locations in the
same municipality.” The Legislature sought
to encourage existing in-state New Jersey
businesses to build new facilities in our cities.
Necessarily, they would move from elsewhere
in New Jersey.
My fi rsthand experience representing applicants
is that our EDA’s leadership does an
excellent job vetting applications to ensure
New Jersey jobs truly are at risk of being lost to
other states, and take pains to ensure the project
will provide greater tax benefi ts to the state
than the amount being awarded. EDA board
members spend hours grilling EDA staff each
month on proposed incentive awards; they are
no rubber stamp.
Notwithstanding a still-soft economy,
the Legislature, the governor and the EDA
have fi nally convinced businesses and developers
to make huge investments in our
urban cores. The EDA is thoroughly vetting
applicants. NJBIZ should be applauding this
watershed moment.
Paul Josephson, partner
Hill Wallack LLP
Newark
Urban transit tax credit is brilliant legislation
One of the largest line items in the state’s overburdened
budget is aid to cities (“A good idea
is becoming a giveaway,” Our Point of View,
Feb. 21).
The Urban Transit Hub Tax Credit is designed
to get the cities back on their feet and
off the public’s back.
The UTHTC is a brilliant piece of legislation
and is critical to New Jersey’s economy
and future competitiveness. Anyone who feels
this tax credit is a giveaway either doesn’t get it
or is acting purely out of self interest.
Sab Russo, president
Mercer Oak Realty LLC
Ewing
panasonic credit worth it in long run
The Urban Transit Hub Tax Credit for Panasonic
is critical in keeping jobs in New Jersey.
In the long run, this will more than make up
We won’t
lose any
business to
Illinois as long as
Pat Quinn is the
governor. He’s
a disaster.
Chris Christie
on Illinois’ ads in New
Jersey media
for the $100 million, both in personal and corporate
tax revenues.
Regina Maurer, partner
Maurer & Maurer, CPAs LLC
Morristown
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Louis A. Tucci
L. Tucci Financial LLC
Little Falls
Quote
marks
12 March 7, 2011 ◆ njbiz www.njbiz.com