NJAA Logo resized
NJAA Newsletter   
July 2014
 
Promotion
 
 
In This Issue
Kimberle Samarelli - NJAA Executive Director
Ed McGlynn - NJAA Lobbyist
Lary Zucker - NJAA Legal Counsel
Fritz Rolle Legacy Golf Outing
NJAA Employee Scholarship Program
The Tax Implications of Disaster
Industry News & Announcements


Upcoming Industry Events
2014



SEPTEMBER

17th Annual NJAA
Fritz Rolle Legacy
Golf Outing
Sea Oaks Golf Club,
Little Egg Harbor, NJ
September 16, 2014
The Paris Hotel
Las Vegas, Nevada
October 27-30, 2014


NOVEMBER

Orange County
Convention Center
Orlando, Florida
Conference: Nov. 17-21
Trade Show: Nov. 18-21
November 17-21, 2014


Annual NJAA Membership
Breakfast Meeting
IAAPA, Orlando, Florida
Continental Breakfast at 8:30 AM followed by Meeting at 9:00 AM SHARP
Room S230FGH
Thurs., Nov, 20, 2014


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2015
Industry Events


February

OABA 50th Anniversary Annual Meeting & Chairman's Reception
Sheraton Tampa
East Hotel
Tampa, Florida
February 6, 2015




2014-2015
 
NJAA  Officers

President
William Gehlhaus

1st Vice President
Scott Simpson

2nd Vice President
Angelo Cappetta

Treasurer/Secretary
  John J. Maurer

Executive Director
Kimberle R Samarelli

Legal Counsel
Lary I. Zucker

Registered Government Affairs Representative
Edward R. McGlynn



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From the Desk of


Kim Newsletter Photo (2)

Kimberle Rolle Samarelli
NJAA Executive Director



IAAPA Tools of the Trade Midway Games Tour 2014
June 24th - 25th

What a wonderful, fun-filled two days we had visiting various game locations.  The tour started on June 24th and it was perfect Jersey Shore weather.  We began the day in Keansburg and the Gehlhaus family provided our lunch inside the Runaway Rapids Waterpark.  Our next stop was Jenkinson's Boardwalk in Point Pleasant Beach where several of the managers, each with their own varying and unique style of presentation, showcased their games.  After a couple of hours of touring, the group enjoyed some free time on their own before the Storino family hosted a delicious tasting of their finest boardwalks eats.  Seaside Heights Boardwalk and Casino Pier was our last destination of the day, and we spent a few hours there looking over the games and locations. Some of the group jumped on the Skyride before we left to see what the town had to offer and its resilience after suffering so much damage from the Fire and Superstorm Sandy.



Steel Pier, Atlantic City, NJ


The second day started with a breakfast gathering followed by a trip to Steel Pier in Atlantic City.  Once there, the Catanoso family hosted a wonderful tour of games, rides, food and a sandcastle contest followed by a great lunch and private Helicopter Tours to 15 LUCKY winners!!  The tour then headed to its finale which was Morey's Piers in Wildwood. The group was greeted by the Morey brothers Will and Jack. We were broken into small intimate groups to tour all 3 piers and the various games on those piers.  The tour ended with a wonderful buffet networking dinner consisting of an amazing array of pairings created by their own executive chef Wally Jurusz.



Morey's Piers, Wildwood, NJ


I need to personally thank each and every location we visited. We have received so many wonderful thank you notes and I couldn't be more proud of our members.  Every time I call they always respond and we have such wonderful jewels to showcase!!

The following is a thank you note we received from Victor Danau, Manager of Education Programs for IAAPA.




I hope everyone is having an amazing summer!



From the Desk of




Edward R. McGlynn, Esq.
Government Affairs Agent
For
The New Jersey Amusement Association 


Summer of 2014 has arrived and already the Fourth of July celebration is already complete.  Probably the most interesting issue confronting both the Governor and the Legislature was the proposed 2015 budget and what transpired in June concerning the revenues the state had received.  As has been reported, the revenue received by the state during fiscal year 2014 was significantly less than what was anticipated and therefore the revenue projections for the fiscal year ending on June 30, 2015 had to also be reduced by more than one billion dollars.  This presented a unique political situation to which Governor Christie had his solution and the Democrats in both the Senate and Assembly had their own solution.

Not surprisingly the Democratic majority came up with a plan to increase taxes on the wealthy by increasing the percentage of the top rate of the New Jersey income tax to raise the additional funds to balance the budget.  Not only would the income tax increase be effective going forward but it would also be retroactive back to January 1 of 2014 so that additional tax revenue would be received by state government in April of 2015.

The Governor's solution to solving the budget crises was to decrease the amount of dollars dedicated to the pension fund by about a billion and a half dollars thereby putting some $680 million dollars into the pension fund instead of the more than two billion dollars which had been proposed.

As is almost always the case in New Jersey, the Governor got what he wanted.  Both houses of the legislature adopted a budget which fully funded the pension plan by way of an increase in the income tax on those making more than one million dollar per year.  Every Democrat in both houses voted for this budget.  Every Republican voted against the proposal.

The bill was sent to the Governor.  In New Jersey, the Governor has the ability to line item veto the budget and by so doing the only way the bill could become law would be for both houses of the legislature to override the veto by a two thirds vote.  While the Democrats control both houses they do not have the two thirds needed in either house to override a Governor's veto.

In the end, the Governor removed the language increasing the income tax and reduced the funding for the pensions to a level which he felt would balance the budget.

Funding for programs affecting our industry for Community Affairs and Consumer Affairs remained level as compared to previous budgets.

I hope the season has gone well for all our members and continues through Labor Day weekend.



From the Desk of


zucker2

Lary I. Zucker
NJAA Legal Counsel



TIME TO RECONSIDER TYPE CERTIFICATION AND INDIVIDUAL APPROVAL

In 2001, the NJAA Ride Committee met with the Department of Community Affairs (DCA) and outside experts to consider a proposal by Director Bill Connolly to create a system of engineering review of amusement rides based on the FAA (Federal Aviation Administration) system of Type Certification.  For many years, the FAA issued Type Certificates signifying the air worthiness of a specific aircraft manufacturing design.  The TC was issued by the FAA, and once issued, the design could not be changed without submission of a supplemental modification application and new engineering review.  When aircraft were manufactured to meet a design TC, each new aircraft did not need to be re-evaluated because the initial TC design review was deemed sufficient.

 In 2002, New Jersey adopted the Type Certification for amusement rides.  We all believed that this new TC system would ultimately result in an influx of Type Certified rides in New Jersey, easier approval and less frequent engineering review of ride designs.  Indeed, we believed that New Jersey was creating a model system that other states would adopt.  It hasn't worked out that way.
 
After 13 seasons, no other state or jurisdiction has followed New Jersey's lead in type certifying amusement rides.  Although New Jersey has an excellent safety record, our rules for Type Certification and Individual Approval are obtuse and subject to inconsistent interpretation.   Applications for Type Certification and Individual Approval, found on the DCA website, each include separate engineering requirements for new rides, service-proven rides and rides with Individual Approval numbers.  The Department has also created separate applications for Individual Approval and Type Certification of inflatable rides.  While the Department continues to tweak the process to improve efficiency, many owners and operators of inflatable, carnival and fixed rides continue to experience frustrating delays and unforeseen issues involving the correct application to submit for a new or used ride.

The New Jersey Amusement Association believes that it is time to re-evaluate and re-set the system and no one is better equipped to begin the process than our members.  The NJAA has created a committee to review the DCA regulations and identify those rules that have no significant public safety purposes, such as the rules requiring hurricane loads.  We will also continue to meet with the DCA to harmonize and update our ride design regulations.  Our regulations are based on a version of ASTM F2291 that dates back to 2004 and modern standards must be adopted.  Finally, we believe in education and communication.  We plan to schedule seminars and workshops to educate owners, operators and ride manufacturers on how to negotiate the process and determine the type of TC or IA application that offers the best chance of prompt review and approval.

We will keep you advised as this process continues.



Important Announcement Regarding
The NJAA Annual Golf Outing



The New Jersey Amusement Association is Proud to Announce the 17th Annual NJAA Golf Outing  has been renamed the Fritz Rolle Legacy Golf Outing in honor of the long-time amusement industry leader, 30 year member of NJAA, and Founder of this event.

For sixteen years, Fritz co-chaired the golf outing, which benefits Give Kids The World, because he was passionate about helping children and their families. To date, Fritz's kind and generous heart combined with the kindness and generosity of those who have both sponsored and participated in this annual event, have helped raise over $80,000. Thank you! Thank you, Fritz!

And now we hope you'll join us once again for a wonderful cause, a fun time with friends, great food, amazing prizes, and a cordial, competitive game of golf!

 
17th Annual
New Jersey Amusement Association

Presents the

Fritz Rolle Legacy Golf Outing

September 16, 2014

 
To Celebrate

Give Kids The World


at


Sea Oaks Golf Club

99 Golfview Drive
Little Egg Harbor Township, NJ
609-296-2656
www.seaoakscc.com







Entry Fee:  
$200.00 Per Person

Entry Fee Includes:

Registration ~ 11:30 am

Lunch ~ 11:30 am

Shotgun Start,
Scramble Format ~ 1:00 pm

Cocktail Hour ~ 5:30 pm

Dinner/Awards ~ 6:30


For Further Information Contact:


Steve Whalen -  (732) 793-1323

Tom Frey - (609) 492-4000






Prize Categories:

Two Special Hole in One Prizes

2015 Car


&

$25,000 Cash Prize

Hole in One * 1st Place Foursome
2nd Place Foursome * 3rd Place Foursome
 Longest Drive * Closest to the Pin


Sponsorship Opportunities  are also Available

Hole Sponsor $150




 


We want to acknowledge and thank the following sponsors for their major contributions:


Hole In One Sponsor
T&T COAST

Dinner Sponsor
TD BANK

Lunch Sponsor
JERSEY PAPER

Beverage Cart Sponsors
RINCO
MOREY'S PIER

Registration Sponsor
DANIEL M. MONROE, CPA
PAUL L. RHINE, CPA



Please Note: All golfers need to be paid in full prior to the outing. Please complete the form and return with payment to:

New Jersey Amusement Association
P.O. Box 178
Seaside Heights, NJ 08751

Deadline for registration is September 16, 2014



NJAA Employee Scholarship Program Application 2014

The New Jersey Amusement Association's Scholarship Fund was started in 1988 by a committee chaired by Ken Wynne as a separate non-profit corporation to give back to those who work so hard giving life to our industry.

The fund will make awards to qualified applicants who are matriculated at or will be matriculated at a U.S. accredited college or university. The amount of the award(s) will vary according to the availability of funds. The award(s) is for one year and previous winners cannot apply again in a consecutive year. The scholarship committee selection is final.

Award recipient(s) will be announced and the scholarship(s) will be presented on September 16, 2014 at the 17th Annual NJAA Fritz Rolle Legacy Golf Outing.  

To nominate an applicant for a scholarship, please download the pdf file, fill in the required information and mail with supporting documentation to:

2014 NJAA Scholarship Committee
P.O. Box 178
Seaside Heights, NJ 08751


Please be sure that this application and all supporting documents are postmarked no later than the First Friday Following Labor Day - September 5th.

 


The application and a list of past winners can be found


The Tax Implications of Disaster



By Christopher R. Cicalese, CPA, Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Company
January 2, 2014
 

The dismay that a disaster leaves behind often prevents those affected from thinking about the tax implications that recovery may entail. Disasters, whether a historic storm or an unintentional fire, can bring all sorts of tax situations into play. In some instances, it is too complicated for taxpayers to ultimately decide how to correctly handle the specific circumstances.

As such, it is important for CPAs, as trusted advisors, to educate themselves and their clients about the basic tax implications of any disaster.

Casualty Losses

A casualty loss occurs when property is damaged, destroyed or lost from any unexpected, unusual or sudden event, not including normal wear and tear. Casualty losses are often associated with headline disasters such as Superstorm Sandy. However, a casualty loss can also result from a simple basement leak from a typical thunderstorm. The tax treatment of these different types of losses is intricate.

To deduct a casualty loss, one must be able to support the amount taken as a deduction and show that there was a casualty. Typically, a taxpayer should be able to show the type of casualty and when it occurred, that the loss was a direct result of a casualty, that the person was the rightful property owner or contractually liable to the owner for damaged lease property, and whether a claim for reimbursement exists that has a recovery expectation.

If the property was for personal use or was not completely destroyed, the amount of the loss would be the lesser of the adjusted basis of the property or the decrease in the fair market value (FMV) as a result of the casualty. Real property for personal use should include any improvements as one entire property, such as buildings and landscaping, for determining the FMV decrease and adjusted basis. Business property or income-producing property does not take the FMV decrease into consideration and calculates the loss as adjusted basis in property, less salvage value, less insurance or other reimbursement received or expected to be received. For a business that lost inventory, including items held for customer sale, there are two options to deduct the loss. The first is by reporting the casualty as a cost of goods sold through the opening and closing inventory balances. If this method is used, the casualty loss should not be claimed again on the return, and any type of reimbursement should be included in gross income. An inventory loss can also be deducted separately by adjusting opening inventory or purchases for the effected inventory items. Unlike the previous method, reimbursements would not be included in gross income and instead should reduce the loss. A loss cannot be claimed to the extent that there is a reasonable prospect of recovery if a reimbursement is not received by the end of the year.

Deduction Limits

The deduction for casualty losses is limited for employee and personaluse property. Business and incomeproducing property are typically not subject to deduction limits, but in some cases the loss will be limited. For employee property, which is property used in performing services as an employee, a loss is subject to the 2-percent rule. This rule reduces the casualty loss, along with job expenses or miscellaneous itemized deductions, by 2 percent of adjusted gross income (AGI).

Personal-use property is subject to the $100 and 10-percent rule. Under the $100 rule, the loss is reduced by $100, regardless of how much property is involved; however, if a taxpayer has multiple casualty losses during the year they are considered separate. After reducing each loss by the $100 rule, the losses are then reduced by 10 percent of AGI.

Insurance and Other Reimbursements

The most common form of reimbursement for a casualty loss is insurance payments. In order to deduct a casualty loss, a timely insurance claim must be filed for reimbursement if the property is insured. The expected reimbursement must be subtracted when figuring the loss, even if the payment will not be received until a year later. If the actual reimbursement is more or less than what was expected, the amount must be adjusted on the tax return for the tax year in which the payment was received. Employer emergency disaster funds should also be considered when computing the casualty loss deduction in that only the amount used to replace destroyed or damaged property should be considered for reducing any unreimbursed losses. Cash gifts that are excludable from income and carry no restrictions on their use do not reduce the casualty loss amount.

If insurance payments were received to specifically cover living expenses and there was a temporary increase in living expenses, the excess is reported as income unless the casualty occurs in a federally declared disaster area. In such an area, the qualified disaster relief payment would not be included in income to the extent that any expenses compensated by these payments are not otherwise compensated for by any other insurance or reimbursement. The payment would be tax free as long as it is for reasonable and necessary personal or family expenses, repairs or rehabilitation of a personal residence, or repair or replacement of contents of a personal residence. If part of the payment is to be included in income, it would be included in the year the person regains use of his or her main home or, if later, the year he or she receives the taxable portion of the insurance payment. A grant that a business receives under a state program for losses incurred is not excludable from income. However, a business can postpone the gain if the owner buys qualifying replacement property within a certain time period.

The road to recovery after a disaster can be overwhelming. By helping clients understand the tax implications, a CPA not only eases the client's mind, but also makes the trusted advisor relationship stronger.




Christopher R. Cicalese, CPA, MSTFP, is a staff accountant at Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Co. He is a member of the New Jersey Society of CPAs.

Contact him at ccicalese@alloysilverstein.com or follow him on Twitter at @AthleteCPA.

This article originally appeared in the January/ February 2014 issue of New Jersey CPA magazine. Click here to read the full issue. - See more at: NJSCPA  

 

 


Industry News
&  
Announcements

    
 

AMOA Webinar

Update by U.S. Mint on Possible Changes to
Coin Composition

Tuesday, July 22, 2014
2 p.m. ET
1 p.m. CT/2 p.m. MT/ 11 a.m. PT


Jon Cameron, director of the U.S. Mint's Office of Coin Studies, will lead the discussion on the background, research and development findings and next steps/timetable for the project, which is mandated by the U.S. Congress under the Coin Modernization, Oversight and Continuity Act of 2010.

 Sponsored by AMOA, the event will be conducted by the association's Legislative team in Washington, D.C., and moderated by John R. Russell IV, a principal in the firm's Public Policy and Regulation Group there.

AMOA and other industry groups have been closely monitoring developments on this issue, and this webinar offers members the opportunity to hear first-hand from the individual who is leading the Mint's outreach efforts on alternative metal R & D on U.S. coinage.

Participants can access the one-hour long webinar using the instructions below.

Please email AMOA's Jack Kelleher at:  jackamoa@aol.com to ensure a spot on the webinar, as space is limited.


To log in the AMOA webinar, please follow these instructions:

1. Click on the following link:
2. You may get a message that you need to install the Adobe Connect plug-in. Please accept this request. It shouldn't take more than a few minutes.

3. Type your full name in the blank field to "Enter as a Guest" and enter the meeting room.

4. You should be prompted automatically to enter the 10-digit phone number for your location. Enter your number and hit "Call My Phone" and your phone should start ringing immediately. Pick up and follow the prompts to enter the call.*

* If you are not automatically prompted to join the audio conference, Please use the following to dial in.

AUDIO DIAL IN INFO:

Conference telephone numbers:

US Toll free:  1- 866-225-1342

Conference Passcode:  1673323446



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Market Makers

Sahara Sam's Water Park and Diggerland USA CEO Ilya Girlya discusses the business of theme parks and their popularity. He speaks on "Market Makers." (Source: Bloomberg)


 

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S&S to Build Two More Tower Rides in China


Logan, Utah- (July 9, 2014) - S&S Worldwide, Inc. is pleased to announce that it has signed a contract with Fengyuan Group Co., Ltd. (referred to as "Everfashion"), in Fushun, China, to design and build two tower rides for their new amusement park. The rides are planned to open in the spring of 2015.

Dreamworld and Castle Resort at Hot Go Park, currently under construction, is a world-class theme park being developed in the Fushun City Bay Economic Development Zone. With themes including "wonder, dream, sci-fi, horror, myth, adventure, and cartoon," the resort will feature six lands and more than 20 attractions, based on the world's most beloved stories and genres.

According to Wei Qiang, Project Manager for the park management at Everfashion, "The Double Tower is a popular addition to the amusement complex in our park. This popular addition will provide thrills and excitement, elevating our guest experience. We are very pleased to be working with S&S, as their solid reputation in the amusement industry and the high quality of the product is appropriate to our expectations."  

As the largest U.S. manufacturer of major amusement rides and roller coasters, with over 450 rides and roller coasters in 33 countries, S&S has enjoyed the opportunity to complete a large number of amusement rides for park sites in China. Tim Timco, Vice President of Sales and Marketing for S&S said, "We appreciate this opportunity to work with Everfashion, and we are confident our tower rides will enhance the visitor experience at their new park."

Timco added, "Our relationships in China are an important aspect of our global presence. We value our Chinese customers and look forward to announcing more projects in China in the near future."

For additional information, please contact sales@engineeringexcitement.com or visit the company's website:  www.engineeringexcitement.com



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If you would like to submit an announcement or share news that is industry related, please send it in an email to:


The NJAA is a pro-active organization, identifying concerns, while working for the safety, health and overall economic betterment of the amusement industry.


If you have any questions or concerns, we can always be contacted at 732-240-0000 or njaa40plus@aol.com.

Remember to check our website www.njamusements.com for valuable resources, recent news and up-to-date information.



Sincerely,

Kimberle Samarelli
Executive Director 
New Jersey Amusement Association