Business & Finance

Newark Lures Amazon With $1 Billion Payroll Tax Incentive

9299ab355d7bcf4a901e_IMG_20180711_151653.jpg
Newark City Council today approved a $1 billion payroll tax exemption for companies such as Amazon. July 11, 2018. Credits: Rebecca Panico
9299ab355d7bcf4a901e_IMG_20180711_151653.jpg

NEWARK, NJ - Amazon will get a payroll tax break at a cost of $1 billion to the city should the company open its second headquarters here.

It’s one of two ordinances that were approved by the Newark City Council council to sweeten the deal for the corporate giant and stand out among other locations vying for Amazon’s so-called HQ2.

“The City Council has brought Newark a giant step closer to being Amazon’s choice for HQ2,” said Mayor Ras Baraka in a statement. “The creation of 12,500 jobs for Newark residents, the added revenue to Newark families plus the added revenue to the City of Newark, Newark Public Schools and Newark Public Library make HQ2 a game changer in the transformation of our city.”

Sign Up for E-News

The ordinances that were passed today do not explicitly name Amazon, but instead refer to headquartered companies that intend to create over 30,000 new full-time jobs and make $3 billion in capital investments.

For an employee that does not reside in the city, Amazon would pay 50 percent on the 1 percent payroll tax, while employees who reside in the city would be totally exempt. The payroll tax incentive would be capped at $1 billion, the ordinance reads.

Another ordinance would streamline the process of land-use and permit approvals for large companies such as Amazon once Gov. Phil Murphy creates a new “Office of Transformative Projects.”

Once that office is created, the city intends to designate the Downtown area as an Urban Growth Zone. The state's Economic Development Authority would then be able to provide financial assistance to projects in those zones and be exempt from the requirements of local regulations.

“I am proud to stand by the strong leadership of Mayor Baraka and all who are speaking in a clear and unified voice that Newark is ready to lead and win the Amazon bid,” Murphy said in a statement. “Let there be no doubt: we are all in this together and Newark will continue to rise as one.”

Council President Mildred Crump was absent from today's meeting, but Council Vice President Luis Quintana said after the meeting that incentives were necessary to make sure Amazon chooses Newark for HQ2. 

"We need to get Amazon here," said Quintana after the meeting "We have to create jobs." 

A third ordinance that’s slated for approval would provide a $10,000 corporate business tax credit for 10 years for each employee hired, city spokesman Frank Baraff said.

A special city council meeting is slated for Tuesday at 10 a.m., said Quintana, though it's not clear if the third tax incentive will be approved then. 

This article has been updated. 

Find TAPinto Newark on Facebook and Twitter. Download the TAPinto mobile app for Android or iOS.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

East Orange/Orange

School Crossing Guard Opportunities in Orange

July 20, 2018

ORANGE, NJ - The City of Orange Township is accepting applications for Part-Time School Crossing Guard for up to a minimum of 20 hours a week, with a starting salary of $12.02 hourly. Working under the supervision of the Police Department, duties include: facilitating safe passage of school children across high traffic streets and intersections in addition to other duties as ...

2nd Annual Love & Not Hate March Today in East Orange

July 13, 2018

EAST ORANGE, NJ - This morning the Rev. Al Sharpton will join East Orange Mayor Ted Green for their 2nd Annual Love & Not Hate March against gun violence at 8:00 AM. 

The March will begin at Hollywood Ave & Central Avenue in East Orange and will work its way to Oval Park. Once at the park there will be youth activities, vendors, music, school give-a-ways and much more.

How to Create a Powerful Case Study In-House

Last time, we looked at several popular niches for case studies. In this article, we want to outline a basic process for creating your own case studies using your in-house data.

1. Choose a Topic of Broad Interest

Chances are you have several projects you have worked on recently that would make a good case study. Choose one and start gathering your materials.

2. Choose a ...

Even More Valuable Case Study Topics

In the last article, we looked at finance and marketing topics that would make ideal case studies. This time, we want to continue looking at case studies that can help even complete beginners to the world of business improve their skills. We will look at customer relations, leadership and self-help topics.

Customer Relations

Customers are the lifeblood of any business, but it can be ...

More Essential Niches for Case Studies

Last time, we discussed how valuable business-related case studies can be in showing the way to success for aspiring entrepreneurs. In this article, we will be discussing two more important categories, finance and marketing. 

Finance

Finance case studies can offer valuable guidance for small businesses. Topics include:

* Budgeting

* Best accounting practices

  Automation ...