State Shutdown

Boyd

Boyd

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Well according to the news report I just heard, there's still some doubt as to whether they will get parks and beaches open on Saturday. The assembly is meeting tonight and going over the details of the bill, the parks are still closed today. Who knows how long it will take for them to get everything back up and running...

What a bunch of jackasses... there's plenty of blame to go around on all sides of this issue. As someone once said, in the end the people get the government they deserve...
 
entropysedge

entropysedge

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Apr 5, 2006
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central NJ - next to chaos
www.entropysedge.com
Boyd said:
Well according to the news report I just heard, there's still some doubt as to whether they will get parks and beaches open on Saturday. The assembly is meeting tonight and going over the details of the bill, the parks are still closed today. Who knows how long it will take for them to get everything back up and running...

What a bunch of jackasses... there's plenty of blame to go around on all sides of this issue. As someone once said, in the end the people get the government they deserve...
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Gotta agree with you on that one!
 
E

ebsi2001

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May 2, 2006
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southern NJ
bobpbx said:
<SNIP>...If Corzine had indicated the tax increase was temporary until he changed the system fundamentally, even if it took 4 years, it would be easier to swallow.
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Yes, it would be really great, if the Pols could design a fair budget and hold themselves to it!:v:

The really unfortunate thing about this tax is that it will have a much greater impact on "the working poor," low--wage earners, those that do not own property, retirees, Senior Citizens, and those on fixed incomes...:jeffd:

It was definitely short--sighted to cut the expenditures for tourism advertising by 3.5 mio. dollars, when it has been proven that each dollar spent on advertising brings back seven into N.J.'s coffers!:jeffd:

ebsi
 
bobpbx

bobpbx

Piney
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Oct 25, 2002
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BEHR655 said:
Well the way to win the hearts of the citizens is NOT to raise taxes, that's for sure. Florio tried it and it bit him in the ass.
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I really feel Corzine will be good for New Jersey and WILL come through for us in the end. He is just a very poor communicator is all. I am betting right now he is planning to make big, big changes down the road, and we will all be better off, regardless of the 1% increase in the sales tax. He is going to treat us as shareholders and work his butt off to ensure we get maximum value for the taxes we pay. The man knows how to make money work.
 
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ebsi2001

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May 2, 2006
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southern NJ
bobpbx said:
I really feel Corzine will be good for New Jersey and WILL come through for us in the end. He is just a very poor communicator is all. I am betting right now he is planning to make big, big changes down the road, and we will all be better off, regardless of the 1% increase in the sales tax. He is going to treat us as shareholders and work his butt off to ensure we get maximum value for the taxes we pay. The man knows how to make money work.
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I would really like to think you're right, Bob!

ebsi
 
Boyd

Boyd

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Me too... but the cynic in me says that it will just be more of the same old you-know-what....

This article implies that it will be Monday before parks and other state facilities re-open since the Governor is still reviewing the bill today:

http://hosted.ap.org/dynamic/stories/N/NEW_JERSEY_BUDGET?SITE=KYWAM&SECTION=HOME&TEMPLATE=DEFAULT

On Monday, 45,000 furloughed state workers could return to work, although exact plans were not immediately announced.
________________

Corzine said he hoped to sign the budget later Saturday, although he wanted to take some time to review it. "We're going to do a thorough and professional job - as good as anyone can possibly do operating on three hours sleep three nights in a row," he said.
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But does this make you think anything will really change?

About $300 million in special projects were added late Friday by Democrat legislators, including many that would help municipalities and organizations represented by Democratic leaders.
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Boyd

Boyd

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Be sure to write us from Mexico :)

Complaining about New Jersey is one of our constitutional rights (if not actually a duty), and I enjoy it as much as the next guy. But I'll stay here, thanks. If people are leaving then I hope the door doesn't slam too hard on their butts on the way out. With the highest population density in the nation it seems like some shrinkage wouldn't be all that bad.

BTW, as far as NJ is concerned, buying stuff by mail order/internet from another state doesn't let you off the hook for sales tax. According to the code, you must pay a "use tax" on all out-of-state purchases.

Will they catch you? Who knows? But with states like NJ getting desparate for money it's not inconceivable that they could somehow get ahold of records from larger companies like Amazon.com at some time in the future.

More info on use tax here: http://www.state.nj.us/treasury/taxation/

Whenever you purchase taxable items or services for use in New Jersey and the seller does not collect the appropriate sales tax, you are required to pay use tax to New Jersey. For example, if you purchase taxable merchandise from a mail order house and they don’t charge New Jersey sales tax, it does not mean that tax is not due; it means that the mail order house is not authorized to collect New Jersey sales tax. You, the purchaser, must pay 6% use tax directly to the Division of Taxation.
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Boyd

Boyd

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Unfortunately, no. NJ thinks you owe tax on out of state purchases; read the info on the taxation website I linked to above. The article you cited merely says that NJ has backed off on enforcment related to companies which sell over the internet. That doesn't mean they don't expect you to pay the tax.

Now if a business has a "bricks and mortar" presence in NJ it would be a moot point because then they would charge you NJ sales tax at the time of purchase anyway. For example, if I buy something from MacWarehouse and have it shipped to my home in NJ they charge tax because they have office in North Jersey. But if I have it shipped to my office in PA then they don't charge any sales tax. HOWEVER, NJ still expects me to "voluntarily" pay the NJ use tax on the purchase, as per the info I cited above.
 
Boyd

Boyd

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Hey, I'm no lawyer or accountant but I'm just going by what my accountant has told me, and what the state tells me in more than one place. I assume that you're refering to this quote in the article you linked:

The system is voluntary because the U.S. Supreme Court has ruled tax collections are prohibited unless the business being taxed has a presence in the state trying to collect the tax. Federal legislation can permit such taxation, but Congress hasn't acted on several proposed bills.
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I don't think that says anything about New Jersey's ability to tax its citizens. It just says that New Jersey can't make a business in Ohio collect sales tax for them. It doesn't say that you don't have to pay tax on things you import into New Jersey. I think there's a distinction between a business collecting tax on behalf of New Jersey and your liability for paying tax to New Jersey.

See page 44 of the NJ-1040 income tax return instructions, it spells this out very clearly and gives a couple of examples:

http://www.state.nj.us/treasury/taxation/pdf/other_forms/tgi-ee/2005/051040i.pdf

Line 42 - Use Tax Due on
Out-of-State Purchases

If you were a New Jersey resident and
you purchased items or services that were
subject to New Jersey sales tax, you are
liable for the use tax at the rate of 6% of
the purchase price if sales tax has not
been paid. If sales tax has been collected
out of state, use tax is only due if the tax
was paid at a rate less than 6%, based on
the difference.

etc...
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But hey - interpret it any way you want, that's completely up to you....
 
wis bang

wis bang

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Jun 24, 2004
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Will they catch you buying stuff 'out of state' and not reporting/paying the tax?

Most likely not.

Being raised in a boarder town; I remember several occasions where my parents purchased a few larger items, after retirement, cash & carry in PA using my NJ address, as well as, from NJ stores with their own address. PA"s income tax has the same clause...never had anyone checking on that. I bought a crate engine for my pickup truck from a PA dealer related to a co-worker without paying sales tax to PA or NJ!

NJ had been very successful chasing down internet cigarette purchasers. The internet removes the anonminity of making a 'cash & carry' purchase on your neighboring state. The electronic 'bread crumbs' from internet purchases might just cost you in the end. Cleanout your pickup and drive across the bridge 'N pay cash.
 
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foofoo

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Sep 14, 2003
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you know when i met doug back last summer and did hear him speak. i didnt get the feeling he was buying his way to the top though. i dont know if his plans were any better but its how you execute your plans after your in office.i feel corzine hurt many people in the wallet as i could see. to do so during a holiday week is just gomer like. its just not off to a good start from what i see. peoples have this vision that if you can run a business you can run a state. i dont know about that. bottom line i think is he is gonna be great or flat out bomb.
 
B

Badfish740

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Feb 19, 2005
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Copperhead Road
I'm confused. Math was never my strong suit, but if the sales tax is six percent or six cents on the dollar, then increasing it to seven cents on the dollar, or seven percent would be a one percent increase right? I mean regardless lets say you buy something that is $100, in NJ you'll have to pay an extra $7 as opposed to an actual $6. I'm not exactly rolling in it, but if it means that we'll have money in the budget, I'll deal with it. We still don't have a sales tax on clothing or food like most states.
 
Boyd

Boyd

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King had the right idea but his example was confusing. Try this math:

current sales tax = 0.06
new sales tax = 0.07
0.07 - 0.06 = 0.01
and
.01 / .06 = 0.167

Therefore this is, in fact a 16.7% increase. Of course the politicians would like to call it a 1 percent increase, but the new sales tax is actually 16.7% higher than the old tax.

Take another example which might be easier to understand... let's say they increased the sales tax from 6 cents on the dollar to 12 cents on the dollar (no doubt it will happen someday). Would that be a 6% increase? No! That would double the tax, which would be a 100% increase. Using the same math:

0.12 - 0.06 = 0.06
and
0.06 / 0.06 = 1.00, or 100%
 
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