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Albano & Burzichelli Bill to Encourage Out-of-State Tourism to Atlantic City via Tax Reform Signed into Law

(TRENTON) – Legislation Assembly Democrats Nelson Albano and John Burzichelli sponsored to encourage bus companies to continue taking passengers to Atlantic City and other New Jersey tourism locales has been signed into law.
The law (A-1887) prohibits the imposition of the corporation business tax on out-of-state corporations whose only contact with New Jersey is carrying passengers into the state in a motor vehicle or bus to a destination in the state, and the return of those passengers to a location outside the state.
A 2002 law extended the reach of the New Jersey corporation business tax to a corporation that derives income from New Jersey sources, explicitly expanding the reach of the tax to the full extent permitted under the United States Constitution and federal statute.
This new law limits 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 location in the state.
“Since the state began collecting taxes on tour bus operators, operators bringing visitors to New Jersey have suspended or threatened to suspend future trips into the state,” said Albano (D-Cumberland/Cape May/Atlantic). “The loss of tax revenues resulting from this new law would be offset by the sales and use tax and the casino revenue tax generated by tour bus visitors that spend money in this state.”
“Applying this tax this way has been bad for economic development, tourism and job creation in our state,” said Burzichelli (D-Gloucester/Cumberland/Salem). “It’s the complete opposite of what we should be doing, so this law is a long-needed step in the right direction.”