Smaller Limousine Operators Face Larger Costs...
Limousines are a service more and more people are choosing as they are often not much more than the price of a taxi but they will provide you with much better service.
However, the limousine industry in New Jersey is set to face a 7% increase in the sales tax in October. The tax will affect all transportation services originating in New Jersey. The increase in the sales tax means that there are even more overhead costs for business that pride themselves on being smaller operators. Many of us will know that when we shop around we often look for the smaller businesses as we feel we will get better, more personal service from a small business than from a big corporation.
However, now those smaller limousine operators will be facing larger costs. The tax increase not only affects limousine operators, but over a dozen other transport services which were previously not taxed at all. The tax rise is said to be funding a crucial infusion for the New Jersey state budget but it is creating grief for local businesses who are reluctant to pass on the price rise to their customers.
The leaders of the industries now coming under the new sales tax are planning to fight the new laws, especially the already hard hit limousine industry. The limousine industry, as with many luxury items, took a blow after the events of 9/11 and is still struggling with the high cost of fuel. The limousine industry is therefore planning to sue the state over the new tax rises.
A lobbyist for the Limousine Association of New Jersey, Barry Lefkowitz, who feels the new tax is anti-small business, says that ‘there's a perception that limousines represent deep pockets. They don't represent deep pockets for the owners. Who do you think is doing the proms, the weddings, the special Mother's Day things? In New Jersey, 50 percent of the operators operate out of their homes. A lot of them are family operations’.
The increase in the tax is said to reflect the change in the public’s buying patterns which have moved away from buying goods and towards buying services.
The limousine industry in New Jersey is willing to fight for their rights to operate at a reasonable cost to their customers. The limousine industry is one built on service and care and while people are willing to pay a little extra for that, everyone has their limits.
For more information about the prices and types of limousines in your area, contact Limo Broker now.
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