Attorney Dana R. Bowling, who is spearheading the repeal of New Jersey’s sales tax on horse boarding, is asking the horse racing community to write legislators to ask for support for Bill A-1301.

Below is the background provided by Bowling along with a sample letter.

BACKGROUND

As many of you may be aware, horse-boarding facilities became responsible for collecting and submitting sales tax for boarding charges in October of 2006. Unfortunately, many people in the business did not know about this change in the law. As a result, a shocking number of horse boarding facilities across the state, both large and small, have accrued unmanageably large tax debts ever since.

In recent years, the Division of Taxation has been cracking down on horse boarding facilities. The Division’s collection efforts has put many facilities out of business, their owners unable to pay the back taxes owed. Countless people and businesses have filed for bankruptcy protection. And those who have managed to stay afloat are losing business to our neighboring states of Delaware, Pennsylvania and New York, which do not impose such a tax.

BILL A1301

Thankfully, Assemblyman Ronald S. Dancer (R) has filed bill A1301 in the New Jersey legislature in an attempt to exempt horse boarding facilities from the responsibility of collecting and submitting sales tax. This bill is currently being considered by the NJ Assembly’s Tourism and Gaming Committee. If this bill is passed, it will protect horse boarding facilities and horse owners from having to pay/collect sales tax on boarding.

WE NEED YOUR HELP!

In order to get this bill passed, we will need help from people involved in every facet of New Jersey’s equine industry! We are actively seeking stories from those involved in New Jersey’s horse industry, who have been personally affected by the imposition of this tax. And, even more importantly, we need to encourage people to write letters of support for the bill to their legislators.

For links, see Bowling’s Equine Legislation webpage.

Dear Senator/Assemblyperson ,

I live/work within your legislative district and am writing to urge you to support Assembly Bill A1301, which seeks to clarify the sales tax collection responsibilities of horse-boarding businesses.

As someone who is very involved with the horse industry in the State of New Jersey, I enthusiastically support this bill. The existing sales tax has posed a monumental economic hardship for our industry since its origination in 2006. At that time, horse stalls were deemed to be ‘storage units’ and the rental of a stall for boarding a horse became taxable.

I have observed the negative effects of this tax on our local industry firsthand. Horse boarding facilities in New Jersey are losing substantial amounts of business to farms in Delaware, Pennsylvania and New York, which do not have a similar tax. This has forced numerous small businesses to file for bankruptcy and/or close their doors, thereby eliminating scores of jobs in New Jersey at a time when our state’s citizens cannot afford to lose them. Many businesses have simply shouldered the tax themselves in order to avoid losing customers to other businesses that are not complying with the law, which has eliminated any profit they previously earned. Countless more will continue to face devastating financial consequences if this continues, which will not be limited to horse boarding facilities – it also affects feed/equipment dealers, hay growers, etc.

The answer to this problem is A1301. This bipartisan bill, which was introduced by Assemblyman Ronald S. Dancer (R) and Assemblyman John J. Burzichelli (D), is currently being reviewed by the Assembly’s Tourism and Gaming Committee. If passed, this proposed legislation will carve out an exception to the existing sales tax on storage facilities for horse boarding businesses. It will allow small businesses in New Jersey’s equine industry to, once again, be competitive with businesses in our surrounding states and will contribute to saving the industry of the horse, New Jersey’s state animal.

In closing, I ask that, when the time comes to vote in Trenton, please vote in favor of A1301. Thank you for your time and for considering my request.

Sincerely,

(SBOANJ)