NJ.COM – JANUARY 08: People wait in line for car seats at a gas station on January 8, 2019 in Newark, New Jersey.
A bill to increase vehicle sales tax was introduced in the state legislature.
(Photo by Joe Raedle/Getty Images) A bill that would increase vehicle vehicle sales taxes was introduced last week in the New Jersey state legislature, but the legislation has already been called a step back for the state’s auto industry.NJ.COM: New Jersey’s car industry has seen a huge surge in demand for new cars, and the state is losing $10 million in vehicle sales each month to lower tax revenue, according to the state Department of Revenue.
The state is currently in the process of adding new vehicles for sale in the next five years, but revenue projections have been cut.
The new bill, introduced by State Assemblyman Robert G. Bello, R-Sarasota, would raise the state sales tax from 8.75% to 9.25%.
The bill also would create a $50 million incentive program to help companies purchase new vehicles, but some lawmakers said it would take years to build up enough demand to generate significant revenue.
NJ.COAST: Car sales in New Jersey are up by 15% over last year, but many consumers are still buying cars, despite the state raising the sales tax.
A study conducted by the New York-based research firm IHS Automotive showed that car sales in the United States increased by 17% in 2017 compared to 2016.
Sales of new and used cars increased by 6.4% over that same period.
The study said that the new tax would have a significant impact on the economy in New York, as it would increase the cost of driving by more than $300 per vehicle per year, according the Times Union.
The study said the increase in sales taxes could have a negative impact on local businesses, which are also affected by the higher cost of gasoline.
The State Council on Economic Development, the state body that oversees the State Legislature, said the tax would negatively impact small businesses.
The Taxpayers Protection Alliance, an advocacy group, also said the new taxes would have an impact on low-income consumers.
The tax, which is a state property tax, is levied on most commercial vehicles, including vehicles with more than 20,000 miles on the odometer.
The Taxpayers Association of New Jersey, a New Jersey business group, has said the bill will be “another step backward” for the auto industry and has threatened to pull its members from the legislative session.
According to the Times-Union, the bill would impose a 4% increase in the vehicle tax, making the increase $3.9 million.
The New Jersey Taxpayer Association, a tax advocacy group that has a member count of about 1,000, said in a statement that the bill is “just another way to make New Jersey less competitive in the global marketplace for vehicle manufacturers.”