Business Tax, AFFORDABLE PLACE TO LIVE
ROI-NJ: Manufacturer: Cost of doing business in N.J. may force me to move to Pa.
For 29 years, Tektite Industries has been proud to build a business in New Jersey and help carry the torch for manufacturing in our state’s capital city. I can remember when we first started producing LED lighting and strobes, we had two products. It was here in Trenton that we saw our business grow to more than 100 products.
But, sadly, I now count myself as one of the many business owners in the state who are very seriously looking to relocate across the river to Pennsylvania. In fact, we have already investigated four sites thus far and have another 10 or so on our list.
The reason for our search is simple: It is just too costly to run a business here in New Jersey.
I realize this is familiar complaint. And, maybe, to some, it’s just rhetoric. But, for our part, it is indeed an undeniable reality. Even with the need for new infrastructure in a new location, our accountants compare the costs of doing business here to Pennsylvania and estimate we’ll have recouped that added expense in three years or so.
In our case, New Jersey’s high taxes, compounded by the new workplace mandates over the past year, are simply too much to bear. We are already eliminating our summer internship program and, in order to stay in New Jersey, we will need to eliminate or greatly reduce our contributions to our employee health care.
Also, as we need to constantly run machinery, another $300 million in state-approved ratepayer subsidies every year will result in us literally paying out thousands of dollars more annually in energy costs.
Read the full op-ed here.