NJ – Unfriendly to all

From flora to fitness, business taxes are not the only way for New Jersey to apply their business unfriendly attitude.  There are other ways to increase dedicated sources of revenue to justify growth of government control and powers of our Governor.  What we have in the legislature is an array of bills that add even more pressure to businesses in the form of registration fees, educational mandates, administrative costs, and increased regulations.

Licensing of landscapers recently gained approval by Governor Corzine signing bill A-2146 into law, P.L.2008, c.77.   The state now requires Landscape Architects be certified by a respective board in the Division of Consumer Affairs, in the Department of Law and Public Safety.  For certification the applicant must have at least a bachelor’s degree in landscape architecture and work experience of four years.  The certificate must be renewed biennially and participation in continuing education is required.

Bill A-1355 (47 pages) is the ‘answer’ to issues outlined in by the State Commission of Investigation (SCI) 72 page report titled, “The Good, the Bad and the Ugly: New Home Construction in New Jersey”. The 4 page press release from the SCI includes key recommendations.  The bill, referencing the report states, “cited serious construction deficiencies in new homes built in New Jersey, including such defects as improperly installed walls, beams, roof trusses and foundations, as well as improperly installed vent systems and pipes”.  “The SCI attributed these deficiencies mainly to low-quality materials and inferior construction practices.”

The bill includes creation of a Construction Trades Licensing Board within the Division of Consumer Affairs in the Department of Law and Public Safety.  It covers an array of duties preformed by building contractors and contractors dealing with swimming pools and spas, specialty trades, heating ventilation, air conditioning and refrigeration, underground utility and excavation, and roofing.  Toward the bottom of this bill appears this statement:

 “49. The following statement shall be provided by the local code enforcing agency office to an owner requesting a construction permit for work on their residence without the services of a licensed contractor.”

“State law requires construction to be done by licensed contractors. You have applied for a permit under an exemption to that law. The exemption allows you, as the owner of your property, to act as your own contractor with certain restrictions even though you do not have a license. You must provide direct, onsite supervision of the construction yourself. You may build or improve a one family residence.  The building or residence must be for your own use or occupancy. It may not be built or substantially improved for sale or lease. If you sell or lease a building you have built or substantially improved yourself within one year after the construction is complete, the law will presume that you built or substantially improved it for sale or lease, which is a violation of this exemption. You may not hire an unlicensed person to act as your contractor or to supervise people working on your building.  It is your responsibility to make sure that people employed by you have licenses required by State law and by county or municipal licensing ordinances. You may not delegate the responsibility for supervising work to a licensed contractor who is not licensed to perform the work being done. Any person working on your building who is not licensed must work under your direct supervision and must be employed by you, which means that you must deduct F.I.C.A. and withholding tax and provide workers’ compensation for that employee, all as prescribed by law.  Your construction must comply with all applicable laws, ordinances, building codes, and zoning regulations.”

I find the contents of this 49-page bill most concerning.  Apparently the state failed in its duty to protect the citizens, and well-paid inspectors dropped the ball.  Now it will be on the back of businesses to take up the slack, which of course will create additional costs to consumers when buying or remodeling a home. Where were the state inspectors we paid preciously to oversee building compliance?

Another bill S-1240, “Creates limited licenses for general barbering and for barbering and hairstyling within the practice of cosmetology and hairstyling”.  General barbers, barber-hairstylists, licensed beauticians, and licensed barbers will have to undergo various requirements to obtain the limited license.

For jewelers, there is bill A-3337.  The applicant will have added costs of a background check and fingerprinting, an application fee, and yearly renewals.

Bill S-2164 is for the licensing of fitness professionals.  There are course requirements, continuing education requirements, and biennial renewal of the license through the Division of Consumer affairs in the Department of Law and Public Safety.

At a time when so many businesses and taxpayers are struggling to survive, our state continues attempts to add more burdens.  What this translates to is increased costs for the consumers and less desire for a business to continue or to open.  As costs escalate, and the economy tanks, there is a normal need for citizens to ‘do it your self’ or do without.   Less profit margin and less consumers equals less business.  Competition is a critical aspect that produces a healthy economic environment that benefits all.  When consumers stop spending, businesses crash.  Businesses crash and so go private sector employment.

Governments also rely heavily on the taxes from a robust business environment.  Public sector jobs are put at risk when government tax income declines.  We are all in this one together.

Above are just a few of the bills that could hit our businesses and personal pocketbooks.  One can review bills and monitor their activity on the New Jersey Legislative web site.  There is a wealth of information on this site, a ‘free’ college education.  To be vigilant we must explore our state and government and be proactive in our involvement.

Consider connecting to a good grassroots organization.  I recommend checking Americans for Prosperity (AFP), which is a national organization with many state divisions, including AFP-NJ.

Tax hangover

Many of us are experiencing the effects of tax hangover. Was feeling the increasing onerous duty of tax preparations a figment of our imagination, a sign of aging or inability to cope? As we awaken from the nightmare of paperwork the reality of truth confirms that it is indeed becoming more difficult and costly to crunch the numbers. The Daily Record has reported some Internal Revenue numbers related to the costs of tax collection.

Many small businesses must also file their returns at the same time, doing double and triple duty. Adding insult to injury, the federal employee taxes and reporting for the first quarter of the year is also due the same day, April 15. This is followed by NJ sales tax payment, due on the April 20. Relief does not occur until April 30, when the NJ first quarter state employee reports and taxes are due. In the midst of all this insanity businesses are sent the various yearly renewals such as workers’ compensation insurance that must be completed and paid.

There is no question why the employers have been united against any legislation that places increased ‘duties’ and costs on business. The cost of the responsible employees, accounting fees; along with the taxes themselves, are rolled up into product and service costs. The price you see at the register reflects not just the obvious overhead and inventory prices, but also a number of ‘hidden costs’ that may not be known to many consumers.

I’m glad April 15 has been crossed off my calendar.