Plan to seek legislative OK
for auctioned autos fees killed
By:Alec Moore
By a narrow margin, the Borough Council voted down a proposal Monday to impose an excise tax on all cars sold at Adesa Auto Auctions.
The measure, proposed by Republican Councilman Martin Wierzba, received the support of fellow Republicans Susan Asher and Mike Polak, but was rejected by Democratic Council members Ted Petrock, Senga Allan and Tom Weiss.
Mayor Angelo Corradino, a Democrat, cast the tie-breaker vote, which ultimately killed the proposal.
The resolution in question would have requested New Jersey’s Legislature to grant the borough authority to impose a $10 surcharge on all cars sold at the North Main Street company.
If approved by the state, Mr. Wierzba estimates that tax could have generated between $500,000 and $1 million in revenue for the borough, which, Mr. Wierba said, he hoped to apply towards property tax relief, downtown revitalization and additional funding for the borough’s school system.
Mr. Wierzba’s initiative was buoyed by the state Legislature’s recent approval for municipalities to collect a tax based on local hotel occupancies. During the meeting, Adesa General Manager Joe Migneco and Sheryl Schwartz, Adesa’s attorney, stated that if an excise tax were placed on its vehicles, the company would move out of Manville. They said the development of the Adesa facility played a significant role in revitalizing Manville’s downtown and that the company has given much to the community.
"This is detrimental to our business, what’s being proposed here is unjust," said Mr. Migneco.
One of Mr. Migneco’s prime concerns was the fact that, in the event the state authorized the borough to impose an excise tax on Adesa vehicles, the company would have no choice but to pass that charge on to its vendors and customers due to state mandated fee structures.
He added that Adesa has always been open to requests from the borough and local organizations that requested to use their facility.
"We’ve always said ‘yes’ but this time we have to say ‘no.’"
He noted that the borough’s police, Fire Department and rescue squads all use the Adesa grounds for training and that the facility hosts meetings for two Scout groups.
Mayor Corradino, who is seeking re-election this year, and council Democrats, opposed the proposal based on their belief that doing so would open the door to imposing excise taxes on other businesses in town.
"We have to maintain a fair tax structure and we can’t afford to drive away businesses, we don’t want to create the impression that Manville is not business friendly," said Mayor Corradino, whose sentiments were shared by Ms. Allan. "Taxing any kind of a business is uncalled for. I’ve never heard of anything so ridiculous in all my life," said Ms. Allan.
In response to the criticism over his proposal, Mr. Wierzba, a Republican candidate for mayor in the fall election, said Democrats were "blowing things out of proportion."
"They’re comparing apples to elephants," he said, referring to comments made by the mayor and Ms. Allan who said the state’s authorization of an excise tax on cars sold at Adesa could pave the way towards excise taxes on other businesses in town.
"No one is talking about taxing small businesses, this was a surcharge for Adesa only." He further emphasized that the intent of the resolution was not to punish Adesa or impose excise taxes on Manville businesses, but rather to look into bringing in revenue for the borough. "I don’t think (an excise tax) would put a dent in Adesa’s wallet, but it could make a huge difference for Manville’s taxpayers, that’s why I brought this up, because I think it will benefit our community," said Mr. Wierzba, who said he did not think Adesa would leave the borough if a tax were imposed. "I don’t think Adesa would have moved. It was a scare tactic." Reactions to the proposal seemed evenly split by members of the public. Resident Dean Shepherd was among those who supported the resolution. "I support this amendment, there’s got to be a way to get some more money out of that site," said Mr. Shepard. Resident, and former Borough Councilman Stanley Jasiak, however, opposed the measure.
"I object to this farce, this is ludicrous and unfair," said Mr. Jasiak.
Adesa arrived in the borough in 1995, occupying 160 acres just off Main Street at the north end of the Main Street shopping plaza. The Company, which sold approximately $58,000 cars last year, paid $377,000 to the borough in property taxes last year.