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
