The Top Reform on One New Jersey Business Owner's Wish List

Date: May 05, 2015

Should the state really lower the sales tax to 6 percent?

Jim Oostdyk has been in business
since 1979. His company, OK4WD, specializes in four-wheel drive vehicles,
including repairs, accessory and equipment installation and a large retail
showroom where they sell parts, accessories, tires and wheels. OK4WD also
offers sales through its website, mail-order program and wholesale accounts.
Despite a tough economic climate, the business has grown into a
24,000-square-foot facility and employs 28 people. 

Doing business in New Jersey could
be a lot easier, however.

Oostdyk says one of the top issues
affecting his business is the sales tax, which at 7 percent is higher than
neighboring Pennsylvania and Delaware, making competing with nearby businesses
difficult.

To make matters worse, Oostdyk says,
New Jersey small businesses also have to contend with high real estate taxes,
high insurance costs and no help from the state to incentivize business growth.

Oostdyk believes lowering the sales
tax to 6 percent and making up the difference by taxing items that are shipped
by mail-order into New Jersey would go a long way toward lightening this
burden. NFIB is neutral on internet sales taxes per member ballots showing almost equal support and opposition to such a tax.

“We already have a use tax for this
purpose, so enforce it,” he says. “This would more than make up from going to 6
percent from 7 percent. Millions of dollars are shipped in here every day, and
it’s an unfair advantage over New Jersey’s brick and mortar businesses, which
are shutting down in towns all over the state. Also, putting the tax down would
drive business from New York to New Jersey, keep business from moving to
Pennsylvania to save 1 percent and bring us 1 percent closer to Delaware.”

Related Content: Small Business News | Economy | New Jersey

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