Thomas Doll, president and chief operating officer of Subaru of America, speaks during the company’s headquarters groundbreaking in Camden last year. — Courtesy: Governor’s Office
By Joshua Burd
Subaru of America may scale back its plans to expand in Camden in the wake of Gov. Chris Christie’s recent decision to end tax reciprocity between New Jersey and Pennsylvania.
That’s according to a story Monday by The Philadelphia Inquirer, which detailed the backlash from Subaru and other South Jersey-based companies, including Campbell Soup Co. and Destination Maternity. A top executive with Subaru, which is building a new 250,000-square-foot headquarters in the city, told the newspaper he was “blindsided” and “very disappointed” by Christie’s move last month to end the 40-year-old reciprocity agreement.
The headquarters project broke ground in December and is underway, but the executive said Subaru’s plans for a separate training facility in the city may be hold. The executive, President and Chief Operating Officer Thomas Doll, told the Inquirer “we’re evaluating our options until we learn definitively what’s going to happen.”
More than 20 percent of the automaker’s 700 employees in Camden commute from Pennsylvania, Doll told the newspaper. The Pennsylvania/New Jersey Reciprocal Income Tax Agreement has allowed residents of either state to pay income taxes in the state where they live, not where they work, but that benefit is now slated to end on Jan. 1.
For more, see Monday’s story by The Philadelphia Inquirer.
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Editor’s note: The Rundown is a regular feature by Real Estate NJ in which we recap commercial real estate stories and headlines from across the state.
