Jersey City, New Jersey
Judge Arthur N. D'Italia on May 17, 1996 invalidated the recently enacted Jersey City payroll tax because the statutory authorization for the tax expired on December 31, 1995. Jersey City had attempted to collect the fourth quarter of 1995 tax from 3500 identified businesses in Jersey City. The expected revenue was $6,000,000.00. The City had collected about $2,850,000.00 from 1630 businesses to date. Judge D'Italia ruled that because the referendum process had been initiated, the ordinance was suspended from taking effect during 1995. The tax ordinance had never been enacted before the statute sunset provision cut off the City's authority to enforce the tax. The Court further held that the ordinance was defective on its face because it failed to include mandatory provisions required by the enabling legislation. The plaintiffs included several businesses as well as the law firm of plaintiffs' counsel, Margulies, Wind, Herrington & Knopf. Robert E. Margulies, Esq. argued the matter and Jack Jay Wind, Esq. authored the Briefs. The City of Jersey City was represented by Assistant Corporation Counsel, Carol Zylbert, Esq.