REPUBLICAN LEGISLATORS URGE MOTOR VEHICLE COMMISSION TO END EXTORTION OF SMALL BUSINESSES

SERVICE STATION OWNERS BEING FORCED TO PAY AT LEAST $8,000 OR BORROW AT 30 PERCENT FOR EQUIPMENT THEY WON’T GET FOR MONTHS

    Governor Corzine and the Motor Vehicle Commission, or MVC, must halt a new vehicle inspection contract until they find a way to stop extorting small businesses while implementing it, Sen. Steven Oroho and Assembly members Alison Littell McHose and Gary Chiusano said today.

    “This is a clear-cut example of how onerous taxes, fiscal policies and regulations have made New Jersey hostile toward business,” McHose said. “The state has put a gun to the head of inspection station owners and demanded $8,000 if they want to continue operating. This is a disgusting way to treat the small business owners who are vital to our state’s economy.”

    A new five-year $286 million contract with Parsons calls for inspectors to purchase new emissions equipment that costs about $8,000. The equipment won’t be available until November, but businesses have to pay up front or accept the state’s third-party financing plan that has an exorbitant 30 percent interest rate.

    “Governor Corzine just signed a budget that defers many of the state’s bills to future years because of current economic conditions, yet his administration sees no hypocrisy in forcing those small business owners who have survived countless tax increases from pre-paying such a large expense,” Chiusano said. “That is like boasting of restoring property tax relief when there will be about one and a half million more families who won't be able to deduct their property taxes or receive a rebate check this fall.”

    McHose and Chiusano, along with Senator Oroho, all R-Sussex, Morris and Hunterdon, have introduced a resolution and written a letter to the governor urging a suspension of these unfair contract provisions until a more reasonable solution is developed. The resolution has bipartisan support.

    “Today is the deadline, but it’s not too late for a Hail Mary pass from Governor Corzine and the MVC to suspend this contract and spare these local business owners from an absurd demand and extortion interest rates,” Oroho said. “If the Governor thinks having these small businesses pay $8,000 up front or finance at 30 percent won’t hurt them, then our road to economic recovery is going to be even longer and more tortured than expected.”