Local businesses balk at proposed state tax on recreational activities
If approved, participatory sports, such as bowling and laser tag, would be taxed statewide.
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Some local businesses are not on board with the new Sales and Use Tax proposals included in Gov. Phil Murphy's budget proposal. If approved, participatory sports, such as bowling and laser tag, would be subject to the state’s 6.625% sales tax rate.
Howell Lanes has taken to its outdoor signage to protest the proposal.
"The first thing that went through my mind was, why are we taxing our young families?" said Leslie Bohn, general manager and owner of Howell Lanes. "This is going to affect our open bowlers, our league play, our tournaments, who want to come to our facilities. And as a small business, this would really be a big burden to our families, our businesses, and of course, the patrons of our center."
According to budget documents, an expansion of the Sales and Use Tax base would increase revenue by $277.1 million for next year. News 12 reached out to the governor to learn more about just how much tax would be imposed on these activities but has not heard back yet.
"You have to factor that in with play as far as what you can afford to do and maybe not come as often," said Ray Nasto, of Jackson.
Nasto started bowling regularly when he retired more than 10 years ago. He now comes to Howell Lanes three to four times a week and often brings his two grandchildren with him as well.
"It is going to be harmful to the sport because right now the sport is really gaining momentum. It seems like the children are really enjoying it, but this could really set it back," said Nasto.
In the meantime, people have started signing petitions and documents in protest of the tax. They plan on sending them to the governor to have their voices heard.
"We certainly have to pass the cost onto them," said Bohn. "As we speak right now, we pay for credit card fees, we feel that’s the cost of doing business. But when you add this much of an increase, obviously everybody’s going to feel it. So we’re really hopeful that the voices of the millions of people that enjoy our sport will be heard."
