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

Plainfield

Upcoming Events

Carousel_image_d5e53128e2f7325291d8_071618puppet

Mon, July 16, 11:30 AM

Plainfield Public Library, Plainfield

Puppet Show

Carousel_image_e494ac4a13e4230208bf_holy_savior_academy

Tue, July 17, 5:00 PM

South Plainfield

Holy Savio Open House July 17th

Carousel_image_e494ac4a13e4230208bf_holy_savior_academy

Tue, July 17, 5:00 PM

South Plainfield

Holy Savior Open House July 17th

The War on Immigrants: How Far is too Far

July 15, 2018

"First, they came for the Communists, and I did not speak out - Because I was not a Communist. 

Then they came for the Trade Unionists, and I did not speak out - Because I was not a Trade Unionist. 

Then they came for the Jews, and I did not speak out - Because I was not a Jew. 

Then they came for me - and there was no one left to speak for me."

This quote ...

Plainfield BOE Member on Naming of the New School

July 12, 2018

On Tuesday, June 19, 2018 – I, Carmencita Pile, an elected Plainfield School Board member presented this during the Plainfield School Board monthly business meeting to the public and to the board after being recognized by Plainfield School Board President Mr. Richard Wyatt.

On Tuesday, August 8, 2017 at 12:10PM an email was sent from the Plainfield School District's Postmaster that ...

Police Investigators Seek Public’s Help in Fatal Crash

July 15, 2018

SOUTH PLAINFIELD, NJ – The South Plainfield Police Department and Middlesex County Prosecutors Office are looking for the public’s help in the July 4, 2018 fatal motorcycle accident that killed 28 year-old Jessica Montes of Piscataway.

According to police, the accident occurred at approximately 4:50am as the vehicle Montes was a passenger lost control and crashed on New Brunswick ...

La Guerra contra los Inmigrantes- Cuando es Demasiado?

July 15, 2018

"Primero, vinieron por los comunistas, y yo no hable- por que no era comunista.

Después, vinieron por los sindicalistas, y yo no hable- por que no era sindicalista.

Después, vinieron por los judíos, y yo no hable- por que no era judío. 

Después, vinieron por mí- y no hubo nadie para hablar por mí."

Este dicho por el ...

Mayor Mapp:  El Programa de Verano de los Jóvenes

El lunes, 9 de julio, nuevas caras alumbraran las oficinas de la Alcaldía. Nuestro Programa de Verano de los Jóvenes por fin comienza, y otra vez los empleados tendrán la oportunidad de ser mentores de un nuevo grupo de jóvenes.

El Programa de Verano de los Jóvenes corre por seis semanas todos los años y les da la oportunidad de empleo y experiencia a ...

Featured Business: Studio 15 Young Plainfield Entrepreneurs Expand Business Once More

“What you see behind me is a life-changing project for myself that I have been working on since January 2017, nearly two years, discreetly; not sharing much about it with anybody. I've had plenty of reasons to give up on this truck; I purchased it pretty much from the ground up from Rashine Mobile, another local city entrepreneur. The truck had no steering column, no computer; it ...

'Servant of Two Masters' exudes foolish fun

‘Servant of Two Masters’ makes for foolish, frivolous fun

By Liz Keill

MADISON, NJ –Carlo Goldoni’s “The Servant of Two Masters,” in a rousing translation and adaptation by Bonnie J. Monte, has the outdoor audience at The Shakespeare Theatre of New Jersey laughing and clapping all the way through.

The yearly production, held at the amphitheatre on the ...

Lucia, Lucia by Adriani Trigiani

Lucia, Lucia by Adriana Trigiani (Ballentine Books, 2003)

 

If a summer romance novel is what you are craving to read as you sit by the pool or beach, Adriana Trigiani's Lucia, Lucia is a perfect choice. Set in 1950 New York City, the novel is about a young woman, Lucia Sartori, who is determined to have a career and be able to support herself, an unusual choice for a girl who was ...

The Anatomy of Escape by Mike Blue

The Anatomy of Escape: An Unconventional Adventure by Mike Blue (Available on Amazon)

 

Imagine that you could just say, “Chuck it,” and walk away from the bonds that keep you tied to what Mike Blue, author of The Anatomy of Escape: An Unconventional Adventure, defines as the restrictive Work-Consume-Die cycle. To most of us, becoming what Blue terms “a ...

The Death of Koko the Gorilla

Koko's Kitten, Koko's Story, The Eduction of Koko all by Dr. Francine Patterson

 

Last night when I heard about the death of Koko, the lowland gorilla who was educated to communicate through American Sign Language by Dr. Francine Patterson, I went numb with grief. I have followed the life of Koko, her two gorilla companions, Michael and Ndume, as well as Dr. Patterson for forty ...

The Woman in the Window by A.J. Finn

The Woman in the Window by A.J. Finn (William Morrow, 2018)

 

A friend, whose opinion on literature I respect greatly, reported to me recently that she had just finished reading A.J. Finn's debut novel, The Woman in the Window. Of it she said, “I wish I hadn't finished it,” which I interpreted to mean, “It was so good I'm sorry that I finished it.” ...

When the Men Go Off to War by Victoria Kelly

When the Men Go Off to War by Victoria Kelly (Naval Institute Press, 2015)

Victoria Kelly's first published volume of poetry, When the Men Go Off to War, is a wonder in that poems can be written so beautifully about the subject of war. Each poem is a jewel, polished and colorful, glittering with elegant imagery, and rich in emotional wallop. The book, divided into three sections, ...

The Queen of the Big Time by Adriana Trigiani (Ballentine Books, 2005)

            The Queen of the Big Time by Adriana Trigiani, a New York Times best selling author, was recommended to me by a young woman who actually came from the town of Roseto, Pennsylvania, the place where the novel is set. “The author did such a wonderful job of describing how the town actually is,” said the young lady.