7% sales tax on all rentals of self storage

Dear Fellow Car Enthusiasts,

      As part of the adoption of the NJ State Budget, Gov. Jon Corzine signed into law a 7% sales tax on all rentals of self storage, effective October 1, 2006 and thereafter, resulting in increased cost to you; by law, we must charge and collect the additional 7% and remit that money to the Sate Division of Taxation.

      Antique Auto and Classic Car Storage had nothing to do with imposing this increase in your rental. We joined with the NJ Self Storage Association (NJSSA) in opposing this tax increase and objected to having this in the 2006-07 state Budget. Blame the Governor and the legislators who voted for this tax, not us. In fact, the NJSSA is suing the Governor and the State Division of Taxation to repeal this tax as being unconstitutional under both the federal and state constitutions. While the final decision may be months away, we will ask the Court to “enjoin” the State from collecting this tax until there is a final decision.  There are also questions about charging the tax and we await regulations from the Division of Taxation. But note that if we must charge the tax, you must pay it and we must remit it to the State. If our lawsuit is successful and the tax is unconstitutional, we will not charge you the tax; but if we have to collect the tax, and then the Court says that it is unconstitutional, you will have to apply for a refund to the State Division of Taxation and not this Company. It is the state’s obligation to refund any tax not properly or correctly collected, not Antique Auto and Classic Car Storage.

      If you have the chance to speak with your Assembly Members or Senator, please complain about this tax.  After all this is a tax on your own property, not something you are buying.  We believe that is unfair, improper and unconstitutional.  Thank you for your cooperation and attention.

Very Truly Yours,

Antique Auto and Classic Car Storage