New Jersey Food Council
30 West Lafayette St., Trenton, NJ 08608
Phone: 609/392-8899
Fax: 609/396-6571
Email: njfc@njfoodcouncil.com

Tax on S Corporations Set to Expire

The Corzine administration has announced that it has no plans to extend the Tax on S corporations, which is set to expire on June 30, 2007. The announcement by a Treasury Department spokesman is welcomed by business throughout the State, particularly small business owners who most often set up S corporations.

Traditionally, S corporations do not pay corporate income tax on profits but instead shareholders pay income taxes on their shares of the companyπs profits. Through the S corporation tax, New Jersey taxes both shareholders and corporate income resulting in a double taxation on small business.

Letting the tax expire would eliminate an estimated $40 million from State Budget revenues for the next fiscal year however, NJFC believes that elimination of the tax will increase revenues to the State in the long run by boosting the Stateπs economy and allowing business to thrive and expand.

NJ Among Worst States in Taxes

New Jersey continues to be one of the most expensive Stateπs in the nation to live and run a successful business. Much of this high cost of living can be directly attributed to the enormous tax burdens placed on taxpayers. New Jersey taxpayers pay the third highest in combined state, local and federal taxes per capita in the nation. Despite this fact, tax rates continued to climb in 2006.

In 2006, New Jersey raised the tobacco tax, yet again, to impose the highest tax on tobacco in the nation. The State also imposes one of the highest sales tax rates on retail sales in the country at 7 percent. In addition, New Jersey is subject to the highest property taxes in the nation followed by New Hampshire, Connecticut, New York and Rhode Island.

As we approach the Governorπs State Budget address scheduled for February 22, 2007, NJFC remains hopeful that lawmakers will not rely on tax increases to fund the $2 billion anticipated State Budget deficit for Fiscal Year 2008. Instead, the State should focus on the spending side of the ledger to balance the budget.

NJFC Safety & Risk Management Committee Meeting

The next meeting of the NJFC Safety Risk Management Committee will be held on Wednesday, February 21, 2007, 12:00 p.m., at the Crowne Plaza, Jamesburg, New Jersey (Exit 8A of the New Jersey Turnpike).

NJFC encourages all member company risk management personnel to attend this important meeting.

Night of Distinction to Be Held on March 22!

The NJFC Annual Night of Distinction event will be held on March 22, 2007 at the Sheraton Meadowlands in East Rutherford, New Jersey.

Each year, NJFC honors a distinguished class of food industry leaders who have made a meaningful contribution to advance the mission of the Food Council, have achieved a significant food business success and have a history of civic service within the New Jersey food community. This year, the New Jersey Food Council will be honoring Dean Durling of Quick Chek, Judy Spires of Acme and Joel Perlmutter of Perlmart ShopRites with Industry Achievement awards

NJFC is proud to pay tribute to these industry leaders who have helped NJFC to become one of the finest food trade associations in New Jersey and throughout the country.

This yearπs event will again feature a Texas Poker exhibition, which is quickly becoming a popular tradition at the event. Please join us in celebrating these fine industry achievers.

Photos Galore

Don't forget to check out our library page to view photographs from our events including our recent Loss Prevention Conference & Exhibition.