Taxing the Rock

The new arena in Newark, the Prudential Center (aka The Rock), has provoked the interest of the New Jersey legislature. Tax and spenders as they are, they see an opportunity to tax and spend just a bit more.

The measure, designed to raise funds from sports fans and concertgoers to offset traffic control and security costs, won approval today from the Senate Budget and Appropriations Committee. The endorsement comes less than two weeks after the bill authorizing the surcharge, (S-2971), was introduced on Nov. 29.

Separately, committee members deferred consideration of a companion measure (S-2891) that would let Newark, Elizabeth and Jersey City impose a 7 percent surcharge on parking fees for arena events to pay for municipal services associated with the arena.

Both measures were introduced after the November elections, and will die unless they are approved by both the Senate and Assembly before the current session ends Jan. 8.

The first measure would effectively increase ticket prices by 5% and would affect all events at the new arena.

How exactly is the tax going to make the arena competitive versus other arenas in the region? No tax is imposed on the ticket prices at the IZod Center, the former home of the Devils in the Meadowlands.

The Legislature simply cannot help itself when it comes to taxing and spending. No one in Trenton can hold the line on spending, so tax hikes are the only logical and convenient outcome for that mindset.