Washington DC, US Supreme Court rules states can collect sales tax for online purchases nationwide . Online shoppers could find costs going up after the Supreme Court did away Thursday with a decades-old precedent limiting the ability of states to collect sales tax on certain out-of-state Internet purchases.
The 5-4 ruling called the current rules “unsound and incorrect.” The Court shot down the “physical presence” required .Currently, businesses shipping a product to another state where it does not have a “physical presence” — a store, office or warehouse — are not forced to collect that state’s sales tax.
The high court said that rule is outdated, “When the day-to-day functions of marketing and distribution in the modern economy are considered, it is all the more evident that the physical presence rule is artificial in its entirety,” Justice Anthony Kennedy wrote.
The current regulation “allows remote sellers to escape an obligation to remit a lawful state tax is unfair and unjust,” added Kennedy. “It is unfair and unjust to those competitors, both local and out of state, who must remit the tax; to the consumers who pay the tax; and to the states that seek fair enforcement of the sales tax.”
Trenton NJ, Two California men who were arrested in Mercer County, New Jersey, with over 50 pounds of crystal methamphetamine and nine kilograms of heroin appeared Wednesday in Trenton federal court, U.S. Attorney Craig Carpenito announced, following a following a U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Newark investigation, which also included N.J. State Police, and Drug Enforcement Administration’s New Jersey Division.
Gabriel Acosta Villa, 29, of Lake Forest, California, and Oscar Perez Jr., 23, of Santa Ana, California, are both charged by complaint with one count of conspiracy to possess with intent to distribute methamphetamine and one count of conspiracy to possess with intent to distribute heroin. They appeared this afternoon before U.S. Magistrate Judge Lois H. Goodman and were detained.
According to the complaint:
On June 17, 2018, law enforcement officers received information that a commercial truck driver and his accomplice planned to sell approximately 50 pounds of crystal methamphetamine to a buyer in the Trenton area. Law enforcement officers set up surveillance near the parking lot of a Robbinsville, New Jersey, restaurant and observed Acosta walking through the parking lot with two large bags. After Acosta entered a nearby vehicle, law enforcement officers stopped the vehicle and discovered 51.31 pounds of a substance that tested positive for methamphetamine.
After detaining Acosta, law enforcement officers searched the area and discovered Perez walking alone near the loading docks of a nearby hardware store. A large white tractor trailer was parked nearby with the engine still running. A subsequent search of the tractor’s cab uncovered 9.5 kilograms of a substance that tested positive for heroin.
Both defendants face a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Carpentio credited special agents of HSI Cherry Hill, under the direction of Resident Agent in Charge Richard Reinhold, and overseen by Acting Special Agent in Charge Brian Michael of HSI Newark, and the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation. He also thanked officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan, for their assistance.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Trenton NJ, Lawmakers in New Jersey approved a bill Thursday that would slap a 5-cent fee on single-use plastic and paper bags.State lawmakers say it is a bill that both attempts to reduce waste, while bringing in revenue to the tackle specific environmental cleanup.
According to Northjersey.com, the A-3267/S-2600 bill, was first considered by legislative committees on Tuesday and approved by the full Senate and Assembly on Thursday. The votes were 23-16 in the Senate and 41-32 in the Assembly.
The New Jersey measure would impose a nickel fee on single-use plastic and paper bags at supermarkets, pharmacies, large retailers and chain restaurants. However, individuals who are over 65 years old or are using government assistance to pay for groceries are exempted from paying the fee.
Joe Sinagra chimed in , “I will guarantee you that plastic straws will be targeted next.
Either you will have to carry around a personal straw or be subject to paying a straw ‘fee’ . . . a Straw Tax.
The money collected will go towards a plastic awareness campaign.
After that the Democrats will create a Plastic Waste Commission with 6 figure salaries, and the state plastic coffers will have a ‘0’ balance . . . so naturally the fees will need to be increased.”
Trenton NJ, Following failed talks with Governor Phil Murphy, the state Senate this evening proceeded with passage of its own $36.5 billion budget as an alternative to Murphy’s version. The cornerstone of the budget would be a hike in corporate taxes .
The budget passed 21-17.Republican Senators Kristin Corrado and Kip Bateman voted yes on the budget and Democratic Senators Dick Codey, Nick Sacco, Nia Gill and Ronald Rice opposed it.
Assemblywomen Holly Schepisi summed it all up for New Jersey ,”Tonight the NJ Legislature passed a bill which increases our corporate business taxes to the highest in the nation. Here is a floor speech I gave highlighting some of the reasons I voted no. Representing a district that has recently lost Sony, Hertz and Mercedes, among other corporations, to more business friendly states I could not in good conscience vote to further eliminate our ability to compete.”
“This budget at the end of the day does nothing to make New Jersey more affordable,” said Senate Republican Leader Tom Kean, Jr. (R-21).
Trenton NJ, late afternoon meetings gave some hope that a budget deal would be reached , the Democratic controlled legislature will now move forward with its own budget.
Talks with the Governor appear to have collapsed for the moment.
“The Governor’s doing a press conference alone, that should tell you something,” a statehouse source said and at the press conference Governor Phil Murphy to blame the Christie Administration, saying ,”Unfortunately the legislature seems intent on keeping the legacy of Chris Christie intact in Trenton,”
Speaker Craig Coughlin went back to his caucus to report the news were he told his members he’s going forward with the alternative budget pushed by state Democrats .
For their part Assembly Republican Leader Jon Bramnick and Assemblyman Tony Bucco said , “Our caucus is united,We won’t vote for a tax increase. [They] can call it anything they want.
Will Urge Senate on Thursday to Exercise Its Constitutional Authority to Withhold Appropriation for Retroactive Raises.
Senate Republican Leader Tom Kean has introduced a resolution urging the Legislature to reject $100 million of retroactive back payments that Governor Phil Murphy is attempting to give to public employee union members.
Sen. Tom Kean will urge the Legislature to reject $100 million of retroactive back payments that Gov. Phil Murphy is attempting to give to public employee union members. (Pixabay)
“Governor Murphy’s plan to give $100 million of retroactive raises to public workers is obscene given his repeated statements that New Jersey is in such poor fiscal shape that we have no choice but to raise taxes by billions,” said Kean. “Thankfully the Governor has no ability to fund this giveaway to his union friends without legislative approval. As we debate the FY19 State budget tomorrow, I will urge the Legislature to exercise its constitutional authority to deny an appropriation for these unaffordable back payments.”
Kean’s resolution, SCR-127, disapproves of Governor Murphy’s proposal to award retroactive raises to approximately 32,000 Executive Branch employees in an amount totaling more than $100 million.
The Governor’s plan to provide the back payments follows his unilateral approval of a Memorandum of Agreement with the Communications Workers of America (CWA) that provides for the retroactive raises.
The resolution illustrates the excesses of the deal, highlighting the example of a public employee with a current salary of $70,000. Under the contract agreed to by Governor Murphy, that taxpayer-funded employee would receive an immediate windfall payment of $20,000 for retroactive pay increases. Further, the employee’s salary would immediately rise to approximately $87,000, representing a permanent pay increase of more than 23 percent.
“Middle-class workers in the private sector, employees of non-profits supporting our communities, and thousands of public servants who aren’t members of a politically influential union won’t get 23-percent salary increases or retroactive raises, but they’ll all pay through higher taxes for the massive checks that Governor Murphy wants to send to certain union employees,” said Kean. “For someone who talks a lot about fairness, the Governor’s giveaway to the CWA represents anything but a fair deal for New Jersey taxpayers.”
Kean said there’s no room for the lavish giveaway given the competing tax proposals being pushed by Governor Murphy and legislative Democrats.
“Governor Murphy is pushing a $1.7 billion tax increase plan, while Democratic legislators are offering a competing plan to raise taxes by $1 billion,” added Kean. “Given the severity of the multitude of tax raising proposals from Democrats, it’s shocking that none of them are looking for opportunities to eliminate unnecessary spending. This frivolous budget addition of $100 million to fund retroactive raises is a good place to start. I’ll urge the Senate to act tomorrow to cut off funding for the Governor’s excessively generous union agreement.”
Trenton NJ, Today, the respective Senate and Assembly Budget Committees passed S-2746/A-4202, which would drastically increase the corporate business tax rate. The New Jersey legislature will consider the measures on Thursday.
Lawmakers are considering raising the corporate tax rate between 11.5 and 13 percent based on the size of the local business. These drastic tax increases would make the Garden State the seemingly proud owners of the highest business taxes in the nation. Business tax rates addressed in this proposal are currently levied at 9 percent.
AFP-NJ State Director Erica Jedynak issued the following statement:
“We want businesses to set up shop and thrive in New Jersey. Our businesses are the life-support of the economy, and these jobs help local workers provide for their families. Dramatic tax increases will hurt the families, workers, and entrepreneurs that hope to make New Jersey home. Due to the nation’s highest property taxes, New Jersey families are already being taxed into exile and raising the corporate tax rate could very well serve as the death blow to the New Jersey economy. Now is the time for lawmakers in Trenton to ensure that our job creators remain hiring and open for business. Instead of maintaining the failed status quo, New Jersey lawmakers should work toward practical solutions that decrease taxes in our state and increase prosperity.”
Background:
AFP-NJ issues Action Alert to Activists
AFP-NJ’s Tax & Spending Reforms
For further information or an interview, reach Anna McEntee at [email protected] or (703)-674-9227.
Americans for Prosperity (AFP) exists to recruit, educate, and mobilize citizens in support of the policies and goals of a free society at the local, state, and federal level, helping every American live their dream – especially the least fortunate. AFP has more than 3.2 million activists across the nation, a local infrastructure that includes 36 state chapters, and has received financial support from more than 100,000 Americans in all 50 states. For more information, visit www.AmericansForProsperity.org
Trenton NJ, Assembly Republicans on the budget committee unanimously rejected a competing legislative tax plan today that raises taxes by $1.2 billion dollars. Legislative Democrats swapped Gov. Phil Murphy’s proposed millionaires tax and sales tax increase for a corporate tax hike and other tax increases.
“Legislative Democrats keep warning about how Murphy’s millionaires tax will drive high-earners and their businesses out but their plan taxes businesses at a much higher rate,” said Assemblyman John DiMaio (R-Warren), the Republican budget officer.
Under their plan, the top rate on corporations would jump from 9 percent to 13 percent. Murphy proposed raising the top income tax rate from 8.97 percent to 10.75 percent on income over $1 million.
“That is much more likely to make businesses move out, not the other way around,” concluded DiMaio. “Their own argument refutes their plan.”
The new rate would apply on corporations earning more than $25 million and would become the highest business tax in the nation. Businesses earning between $1 million and $25 million would also pay a slightly lower rate of 11.5 percent. That would only be exceeded by Iowa at 12 percent, which is in the process of lowering its top rate to 9.8 percent.
New Jersey currently has the sixth-highest corporate tax rate in the country, and has been rated the worst business tax climate for the past four years according to the Tax Foundation.
“Increasing corporate business taxes for even two years to what is already one of the highest rates in the nation will slow already lagging job growth,” added Nancy Munoz (R-Union), a member of the budget committee.
New Jersey has lost nearly 15,000 jobs since January, according to the Bureau of Labor Statistics, while the labor force has decreased by 30,000 people.
“Democrats claim they want to help those who are struggling but they make it harder by increasing the cost of doing business,” continued Munoz. “When jobs are being lost, the poor get poorer and the middle-class shrinks.”
Trenton NJ, just days after Governor Phil Murphy signed six new major gun control measures into law, giving the the Garden State the strictest gun control in America , a dispute between rival gang members may have led to a shooting that erupted in the early-morning hours of a popular all-night arts festival in Trenton, killing one, injuring 22. None of those laws stopped a mass shooting this weekend at a Trenton, or saved a single person .
Just four days ago Governor Phil Murphy on Twitter outlined some of the changes that would take place following the enactment of what he called “landmark legislation,” including requiring background checks on private gun sales, the reduction of magazine capacity, a ban on armor-piercing bullets, and keeping “guns out of the wrong hands.”
According to Mercer County Prosecutor Angelo Onofri the deceased suspect has been identified as Tahaij Wells, 33. Wells was released from prison and on parole since February on homicide-related charges.
The one man in custody is Amir Armstrong, 23, who has been charged with a weapons offense. Armstrong remained hospitalized in stable condition.
A third unidentified suspect was hospitalized in critical condition.
Ridgewood NJ, New Jersey is one of the most unappreciated states in the whole United States. People who live in New Jersey are proud of their state. What makes New Jersey ,is truly a riddle. Everything bad that is usually said about New Jersey can be blamed on New York City in the north and Philadelphia in the South .
New York city one of the world’s greatest and biggest cities full of energy and drive and a huge international destination for business and tourism . Philadelphia is a city of great historical importance ,central to the founding the United States.
New Jersey with its sprawling suburbs is often viewed as a bed room community for New York City and Philadelphia . Where many commuters head to the cities for work and retire to the quite low crime suburbs at night.
New Jersey is officially called the garden state. New Jersey’s biggest city is Newark. The capital city is Trenton. There are many attractions to see in New Jersey. The Paterson Falls and historic district, the Ironbound Section of Newark ,the Jersey Shore , gambling in Atlantic City, Historic Cape May, Six Flags Great Adventure ,Met Life Stadium , Thoroughbred Racing at Monmouth Park , the Pine Barons and there are also many far more rural and farm like settings to visit .
There is easy access to both New York and Philadelphia via Mass Transit . You can even visit the statue of Liberty and Ellis Island via ferry from Jersey City. There can be heavy traffic for drivers but you never have to pump your own gas.
Another reason to visit New Jersey is its beautiful and plentiful beaches . In New Jersey the beach is called “the shore” . People from New York and Philadelphia come to New Jersey for a swim , enjoy and sunbath.
Coastal Living magazine ranks the best small waterfront communities for its annual “Happiest Seaside Town in America” issue, and for 2018, the happiest of them all is Ocean City, N.J. In the report Coastal Living calls out the classic Jersey Shore town for its “Residential Historic District full of Victorian bungalows and beach cottages making year-round life feel like an old-fashioned vacation.”
The biggest museum in New Jersey is the Newark Museum. It has a large collection of American and, surprisingly, Tibetan art. The Newark museum is a cultural cornerstone of New Jersey. It has different sections devoted to history, natural sciences, art, music, etc. It doesn’t have so many rarities like the museums in New York but it definitely has its own heart.
In New Jersey they debate “Taylor Ham” vs “Pork Roll “, the pizza is excellent and good food is plentiful . The State is filled with shopping malls and an American classic , “Diners” stand at every cross road.
Don’t hesitate to visit New Jersey with your girlfriend(which you can find on https://mariadating.com) . There are many benefits waiting for you that you can enjoy visiting the garden state as well as easy access to both Philadelphia and New York City.
Trenton NJ, The New Jersey State Police is aware of unknown actor(s) spoofing one of our phone lines. The suspect(s) has been calling people, telling them that they have active arrest warrants. The caller requests victims make payment via credit card or risk going to jail.
The New Jersey State Police does not call people to solicit funds over the phone for an outstanding warrant or any other purpose. If you are called by someone stating they are from the State Police asking for your credit card information, do not engage in conversation. Simply hang up the phone. The matter is currently under investigation.
Trenton NJ, Attorney General Gurbir S. Grewal and the Division of Consumer Affairs announced that the Bureau of Securities (“the Bureau”) today revoked the registrations of a Morris County investment advisory firm and its owner, and assessed them $500,000 in civil penalties for fraudulently selling at least $6.1 million in unregistered securities to elderly and retired New Jersey investors.
Richard Belott, the managing member and investment adviser representative of Financial Planning Advisors, LLC (“FPA”), sold unregistered securities to at least eight investors, including elderly and retired clients of FPA, then used at least $1.55 million of investors’ funds on personal expenses, including his daughter’s college tuition, extravagant trips for himself and his wife, and mortgage payments on the couple’s beach house.
The Bureau’s action comes on World Elder Abuse Awareness Day, a day when individuals and organizations from around the globe participate in activities and events to raise awareness about the physical, emotional, and financial abuse of elders.
“Preventing the financial exploitation of seniors is a top priority for New Jersey’s Bureau of Securities, not just on World Elder Abuse Awareness Day, but every day,” Attorney General Gurbir S. Grewal. “The enforcement action announced by the Bureau today underscores our ongoing efforts to protect elder investors from financial predators in the securities market.”
In a Summary Penalty and Revocation Order issued today, Bureau Chief Christopher Gerold found that between 2008 and 2015, Belott and FPA offered and sold at least 24 promissory notes purportedly issued by local diners and a developer. Belott represented to investors that their funds were investments in those businesses.
In reality, instead of receiving promissory notes from the diners or developer, investors received personal promissory notes from the owners of those businesses, who had
undisclosed business relationships with Belott. In at least one instance, the promissory note was issued by Belott.
The promissory notes had a term of one year or more with stated interest rates ranging from 5 percent to 18 percent annually. Interest and principal payments to the promissory note investors were paid from the bank accounts of various entities, including the diners, developer and FPA, Gerold found.
In offering and selling the promissory notes, Belott failed to disclose to investors that: the diners and developer purportedly issuing the promissory notes were clients of his accounting firm, that he had outside business relationships with the owners of the businesses, or that he was a co-owner of some of the diners. Belott also failed to disclose that he received a commission on the sale of certain promissory notes he sold, or that he would use the investors’ funds for his personal benefit.
“Elderly clients of FPA trusted Belott, as their financial advisor, to guide them in making wise investments. Instead, he lured them into a fraudulent investment scheme to enrich himself,” said Paul Rodríguez, Acting Director of Division of Consumer Affairs. “These investors, some of whom risked their entire retirement savings on Belott’s scheme, had no idea that he was using their funds to subsidize his lavish lifestyle.”
As set forth in the Summary Penalty and Revocation Order, Bureau Chief Gerold found that:
Belott and FPA violated New Jersey’s Uniform Securities Law through the following activities, among others:
offering and selling unregistered securities;
engaging in fraud or deceit upon FPA’s advisory clients and others;
engaging in dishonest and unethical practices in the investment advisory business; and
failing to maintain written investment advisory contracts.
Belott violated New Jersey’s Uniform Securities Law by:
acting as an agent without registration;
making untrue statements of material fact and/or omitting to state material facts; and
making false and misleading statements to Bureau investigators during an investigative deposition.
FPA violated New Jersey’s Uniform Securities Law by:
failing to make and keep required books and records;
failing to maintain minimum capital or the required bond while having custody of clients’ funds.
The Bureau’s action was handled by Deputy Bureau Chief Amy Kopleton, Director of Examinations Stephen Bouchard, and Investigator Theresa Hendricks, within the Division of Consumer Affairs.
Deputy Attorney General and Section Chief Victoria Manning and Deputy Attorney General Katherine A. Gregory of the Securities Fraud Prosecution Section in the Division of Law represented the Bureau in this matter.
More information for both elderly investors and their caregivers can be found on the Bureau’s website at www.njconsumeraffairs.gov/bos/Pages/investormaterials.aspx or at www.ServeOurSeniors.org.
The Bureau is charged with protecting investors from investment fraud and regulating the securities industry in New Jersey. It is critical that investors “Check Before You Invest.” Investors can obtain information, including the registration status and disciplinary history, of any financial professional doing business to or from New Jersey, by contacting the Bureau toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at 973-504-3600, or by visiting the Bureau’s website at www.NJSecurities.gov.
Lake Hopatcong, N.J Attorney General Gurbir S. Grewal announced that a Mercer County man was sentenced to a lengthy prison term today for running a drug network that marketed cocaine and designer drugs online and distributed them through the mail. He was charged along with 11 other alleged ring members and associates in an investigation by the Division of Criminal Justice called “Operation Skin Deep.” He and the two other top members of the ring have all pleaded guilty to first-degree charges.
Luke A. Atwell, 37, of Hamilton (Mercer County), N.J., was sentenced today to 19 years in state prison, including 16 years of parole ineligibility, by Superior Court Judge Bernard E. DeLury Jr. in Atlantic County. He pleaded guilty on April 27 to a first-degree charge of leader of a narcotics trafficking network. Atwell acted as managing partner of the drug ring.
Atwell’s partner, Christopher Castelluzzo, 33, of Lake Hopatcong, N.J., who formed the enterprise, also pleaded guilty to a first-degree charge of leader of a narcotics trafficking network on May 24. He faces a recommended sentence of 21 years in prison, with 18 years of parole ineligibility. He is scheduled to be sentenced on June 21. The third top ring member, Aldo T. Lapaix, 31, of Absecon, N.J., was sentenced by Judge DeLury on March 23 to 10 years in prison, including 8 ½ years of parole ineligibility. He pleaded guilty on Aug. 28, 2017 to first-degree charges of racketeering and distribution of cocaine. Lapaix helped procure drugs for the ring and handled the packaging and shipping of drugs.
Deputy Attorney General Jeffrey Barile is prosecuting the defendants and handled the sentencing of Atwell for the Division of Criminal Justice Specialized Crimes Bureau.
Operation Skin Deep began when a detective of the Division of Criminal Justice identified individuals trafficking cocaine while monitoring the activities of white supremacist groups in Atlantic City. The investigation into cocaine sales in Atlantic City ultimately exposed a network that was using the internet to arrange mail-order sales of cocaine and designer drugs, including ethylone, which is known as “M” and is similar to ecstasy.
“This sentence sends a loud and clear message to narcotics traffickers that if you choose to profit by spreading addiction in New Jersey and fueling street-level crime with your drugs, we will come after you and you will face hard time,” said Attorney General Grewal. “I commend the detectives and prosecutors who pursued all the leads to bring these defendants to justice, beginning with drug sales in parking lots and back rooms in Atlantic City and ultimately exposing a statewide drug network that relied on the internet and mail delivery to distribute its corrosive wares.”
“Atwell and his partners were making millions of dollars using their unconventional business model for dealing drugs,” said Director Veronica Allende of the Division of Criminal Justice. “We have put them out of business and ensured with these prison sentences that they won’t be operating any illicit enterprises for many years to come.”
Atwell, Castelluzzo and Lapaix were indicted on March 3, 2016 along with nine other men, including seven other alleged ring members and two alleged associates. Six of those ring members have pleaded guilty and received or face prison sentences ranging from five to 10 years.
Another man charged in the indictment, Jose Ruvalcaba, 30, of Oxnard, Calif., pleaded guilty to conspiracy to commit money laundering and was sentenced to seven years in prison. He is a tractor-trailer driver who was arrested by detectives of the Division of Criminal Justice in a parking lot off Union Turnpike in North Bergen, N.J., along with alleged ring member Shazad Khan, 34, of North Bergen. Detectives found approximately $1.2 million in cash in the trunk of Khan’s Infiniti, wrapped in bundles with duct tape. It was one of the largest cash seizures in New Jersey law enforcement history. Khan allegedly met Ruvalcaba so that Ruvalcaba could transport the cash as payment for cocaine.
Castelluzzo was the primary leader who formed the enterprise. Atwell, as managing partner, was responsible for marketing the enterprise’s drugs on the internet, tracking and managing the gross receipts and expenses, dealing with customers, and keeping an inventory of the remaining drugs. Lapaix helped procure drugs for the ring to sell and handled the packaging and shipping of drugs. Atwell would send computer files to Lapaix containing lists of orders, including screen-names of customers, their addresses, and the amount and type of narcotics that each customer ordered. When Lapaix received the files, he and two men who worked under him would weigh out the drugs, package them, create tracking information, and mail each of the orders. Atwell would ensure all orders were properly filled. Lapaix obtained the supplies for packaging the orders and Atwell reimbursed him. Lapaix also engaged in street-level narcotics sales.
Search warrants executed at various locations yielded approximately a quarter of a million dollars in cash, diamond jewelry, gold bars, another quarter kilogram of cocaine, numerous rounds of ammunition, firearm silencers, cocaine testing, cutting and packaging materials, and related equipment.
Deputy Attorney General Barile is prosecuting the case for the Division of Criminal Justice Specialized Crimes Bureau, under the supervision of Acting Bureau Chief Andrew Johns, Deputy Bureau Chief Jacqueline Smith, and Assistant Attorney General Jill Mayer, Deputy Director of the Division of Criminal Justice. Former Deputy Attorney General Alyssa Schwab and Analyst Bethany Schussler assisted in the investigation for the Specialized Crimes Bureau. Deputy Attorney General Derek Miller and Analyst Debra Maiorano handled the civil forfeiture action.
The lead detectives for the Division of Criminal Justice were Detective Scott Caponi of the Gangs & Organized Crime Bureau and Detective Brian Christensen of the Specialized Crimes Bureau. They were assisted by Sgt. Mike Rasar and worked under the supervision of Deputy Chief of Detectives Christopher Donohue and Lt. Lisa Cawley. They received extensive assistance from detectives of the Gangs & Organized Crime and Specialized Crimes Bureaus, North, South, and Central Units. The New Jersey State Police Intelligence Section also provided valuable assistance. Other partners that were critical to the success of the investigation were the Atlantic City Task Force, Bayonne Police Department, Galloway Police Department, North Bergen Police Department, New York City Police Department, Port Authority of New York & New Jersey and New Jersey National Guard.
Trenton NJ, Senate Republican Leader Tom Kean said the administration of Governor Phil Murphy has failed to comply with the New Jersey Open Public Records Act (OPRA) by improperly withholding readily available public financial documents that were requested more than 45 days ago from the Treasury Department.
The charge was made today in a complaint filed by Kean with the Government Records Council (GRC), the State entity responsible for adjudicating complaints related to the denial of access to public agency records. Kean said Treasury officials have granted themselves multiple extensions to delay responding to the OPRA request with information that he believes is critical to informing legislators engaged in budget and tax deliberations.
Click here to download the complaint. (Note: the PDF file will not display in browsers, it must be downloaded and opened in Adobe Acrobat Reader)
“Senate Republicans submitted an OPRA request to the Treasury Department in April to obtain documents detailing New Jersey’s finances that have already been provided to Wall Street,” said Kean. “We’re concerned that the Murphy Administration’s repeated failure to provide any responsive documents is a deliberate effort to force legislators to vote on nearly $2 billion of tax increases proposed by the Governor without the disclosure of relevant budget information. With our June 30th deadline for adopting a new State budget rapidly approaching, we were left with no choice but to file a complaint today to obtain access to the public records that will allow us to perform our constitutionally mandated duties.”
The OPRA request, submitted on April 25, 2018, reads as follows:
“Please provide all documents (other than email) maintained in electronic format (i.e. Word, Excel, PDF, or Powerpoint) shared by anyone in the Treasurer’s Central Office or Office of Public Finance with any of the four following rating agencies: Moody’s, Kroll, S&P, or Fitch. Only documents shared on or after January 15, 2018 through and including April 25, 2018 presenting information with respect to, or seeking information about, the State’s finances, FY 2019 proposed budget, or bonds issued or to be issued by the Tobacco Settlement Financing Corporation are requested.”
The records requested by Senate Republicans were produced for credit rating agencies this spring by the Treasury Department. Since the documents were provided to the rating agencies with the intent of influencing the purchase of bonds, they are required by federal law to be truthful and free of misleading statements.
“We believe these documents provide the best shot of getting an honest view of the Murphy Administration’s fiscal outlook for the State,” said Kean. “They must be free of the sort of hyperbole and spin that was employed by Treasury officials who sought to sell the Governor’s tax increase plans at our budget hearings. That’s why it’s so important that we obtain access to financial documents where we know the Murphy Administration has a legal obligation to tell the truth.”
Given the upcoming budget deadline, Kean urged the Governor Records Council to expedite a hearing on his Denial of Access Complaint.
“It should raise alarms that the Governor is fighting so hard to prevent the release of detailed and accurate fiscal information while simultaneously seeking to raise billions in sales, income, and business taxes,” Kean concluded. “It’s absolutely imperative that our complaint be adjudicated immediately to ensure that lawmakers have the opportunity to review documents that may help us to fight Governor Murphy’s plan to make New Jersey even more expensive.”
Trenton NJ, The Department of the Treasury today announced that dedicated revenues remain stable while General Fund revenues remain weak for FY 2018 with the Corporation Business Tax (CBT) seeing a substantial decline for the month of May.
As State Treasurer Elizabeth Maher Muoio has pointed out in recent months, despite the growth in dedicated revenue sources – the Gross Income Tax (GIT) and the Petroleum Products Receipt Tax (PPGRT) – a challenging structural imbalance remains due to the weakness in revenues supporting the General Fund. Excluding the GIT and the PPGRT, collectively all other major revenues are down $120.4 million so far in FY 2018.
The CBT declined 44.8 percent in May and is down 3.4 percent for the year. The CBT for banks and financial institutions is down 26.8 percent year-to-date. Additionally, the Motor Fuels Tax, Estate Tax, the Cigarette Tax, and Casino Revenues are also down through the end of May.
Overall, May revenue collections for major taxes were up 6.3 percent compared to last May, however this is due solely to the growth in two of the State’s dedicated revenue sources. Year-to-date, total revenues increased $1.478 billion, or 5.9 percent, tracking closely with the FY 2018 revised aggregate target.
The Sales and Use Tax, the largest General Fund revenue, was up 1.1 percent in May and is growing by only 1.5 percent year-to-date due to recent tax rate reductions.
May collections for the GIT rebounded from April’s weak performance. Net receipts of $990.3 million were up $116.2 million, or 13.3 percent above last May. Of that growth, $71.5 million was due primarily to the annual “tail” of final 1040 tax payments lagging into May. The GIT, which is dedicated to the Property Tax Relief Fund, is up 9.4 percent year-to-date in FY 2018, $1.125 billion above the same point last year.
The State’s other significant dedicated revenue, the PPGRT, is up 70.7 percent through the end of May, $474.0 million above the same point last year, due to a statutory tax rate increase. These funds, however, are dedicated to the Transportation Trust Fund.
June will be the 12th month of FY 2018, featuring important quarterly estimated payments for the GIT and the CBT. In particular, the CBT’s June quarterly estimated payments are highly uncertain following a 16.0 percent decline during April and a 19.5 percent decline in May. Treasury estimates some improvement in June, but if double-digit declines continue, the CBT would fall below the year-end target.
