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Tuesday, December 10, 2013

SBOANJ - DANCER SPONSORS LEGISLATION TO REMOVE REGULATIONS IMPEDING THE VIABILITY OF NEW JERSEY'S HORSE INDUSTRY



TRENTON, NJ – December 11, 2013 -- Legislation introduced by Assemblyman Ron Dancer clarifies that the rental of certain stable stalls is an exemption from tax charges, a measure that is crucial to the viability of the state’s embattled horse industry.

“Confusion regarding the taxability of horse boarding and other services has placed North Jersey horse boarding businesses at a competitive disadvantage,” said Dancer. “This legislation is needed to level the playing field with our competing neighboring states of New York, Pennsylvania and Delaware.”

The bill is welcome news for New Jersey’s equine business segment, which not long ago was a $1 billion industry, providing 13,000 jobs to care for 42,000 horses on 7,200 farms across 176,000 acres of open space in the Garden State.

“Surrounding states do not collect tax on charges for boarding horses, but in our state, the failure to clarify tax collection responsibilities for horse boarding and other services has had a severe negative impact on business. Exempting these services from uncustomary taxation eliminates the confusion and reduce the higher cost of doing business in New Jersey as compared to our neighboring and competing states,” said Dancer.

The Division of Taxation in the Department of Treasury has not provided clear and consistent guidance on the taxability of horse boarding and other services provided to horses that are boarded for a variety of different purposes by a variety of different businesses. This confusion led to higher costs for New Jersey’s equine businesses attempting to maintain compliance with the current law.

“Lifting that cloud of confusion also removes a handicap that is making it difficult for New Jersey horse businesses to compete with out-of-state rivals who can offer lower rates for the same service,” said Dancer.


--Courtesy of New Jersey Assembly Republicans