On June 30, NJ Governor Murphy signed the $50.6 billion Fiscal Year 2023 State Budget, in time for the start of the new fiscal year. This Budget is the largest appropriations bill in state history and a 40% increase in spending since Governor Murphy’s first budget 5 years ago. This Budget increases spending by more than 9% compared to the current fiscal year, including nearly $600 million in additional spending requests by individual legislators. This spending plan provides for a $6.7 billion surplus, $2 billion in property tax relief, and makes the full pension payment of $6.8 billion. The Budget bill was passed largely along party lines, with the majority of Democratic legislators voting in favor of the plan and the majority of Republicans voting against the bill, saying it does not provide meaningful tax relief.
There were other notable actions taken that impact NJFC members. The Budget agreement includes a sales tax holiday, which provides an annual 10-day exemption period from the State sales tax for school supplies and sports and recreational equipment. The exempt items are computers, school computer supplies, school supplies, school art supplies, school instructional materials, and sports or recreational equipment. This year the exemption period will be August 27-September 5, and the Division of Taxation recently issued FAQ’s for retailers.
UEZ Sales Tax Exemption for Grocers Signed
The full Legislature passed and the Governor signed a bill which restores the full sales tax exemption on business purchases made by food retailers in Urban Enterprise Zones (UEZ) provided certain conditions are met. Beginning January 1, only food retailers located in newly designated food desert communities were able to continue to utilize the full UEZ business sales tax exemption. For grocers not located in the designated food deserts, this exemption is capped at $100,000 annually. When NJEDA released their list earlier this year of areas that they designated to be official food deserts, several NJFC members that were long considered to be food desert communities lost this designation. NJFC supported this bill which would exempt all grocers in UEZ’s from this cap with certain stipulations.
Minor Employees
NJFC was thrilled when Governor Murphy signed into law a bill which expands the hours minor employees may work during the summer and updates the process for obtaining working papers. This bill makes permanent the temporary expansion enacted last year which allows minor employees between 16 and 18 years of age to work up to 50 hours in one week and up to 10 hours in one day beginning on the last day of the minor’s school year and ending on Labor Day. Additionally, this bill increases the amount of time a minor may work before a 30-minute break is required from five to six hours. These provisions take effect immediately.
SNAP Access
The Legislature passed and the Governor signed a package of bills which will increase access to SNAP benefits. Bills supported by NJFC include an appropriation of $18 million to the NJ Department of Human Services to tackle hunger. Food security is important to NJFC members, who partner with food banks and anti-hunger organizations to reduce hunger in their communities and increase access to healthy foods. SNAP is an integral part of New Jersey’s nutritional safety net for low-income residents. Enhancing and expanding the availability of SNAP benefits has a significant positive impact on food insecure households in the State.
Food Desert Relief Act
The full Legislature approved and the Governor signed into law a proposal which revises the Food Desert Relief Program and provides incentives to food retailers to establish and maintain stores in food desert communities.
After this flurry of State Budget and Legislative activity at the State House, the NJ Legislature is on summer hiatus and will resume more activity in September. On their Fall agenda, we expect to see discussion on EPR and liquor licensing reform. NJFC will also continue to work on Food Waste regulations, Plastic Law implementation, Child Labor Law Enforcement activities, Unemployment Insurance reform and workforce development. Ain’t no rest for the wary!