Legislation Would Prohibit Imposing Corporation Tax on Businesses That Store Property Temporarily
Assemblyman Ruben Ramos, Jr. (D-Hudson) introduced legislation last week to eliminate unnecessary taxes on imported goods.
“This legislation is designed to reduce the state’s overall tax burden on businesses,” Ramos said. “This is an actual tax cut that will make our state more competitive.”
Under A-3833, the state would no longer impose a corporation business tax on businesses that import goods and temporarily store them at a receiving facility before they go on to Customs.
“New Jersey has some of the most competitive ports on the East Coast,” Ramos said. “This bill makes our ports more competitive and we need that in this global market.”
Currently the state can impose taxes on businesses that import goods simply for storing their imports here temporarily before it goes on to clear Customs or make its way to stores. Right now the state can impose a tax for storing the good, and then charge another corporation tax after the import has cleared Customs.
“There’s no point in triple taxing these imports. These taxes directly translate into more expensive goods and consumers take the hit in the end,” Ramos added.
The bill has been referred to the Assembly Appropriations Committee and awaits a hearing.