TRENTON, N.J. A bill has been introduced that would eliminate New Jerseys corporate business tax on out-of-state bus companies that bring passengers into the state.

New Jerseys requirement that bus operators having more than five passenger trips into the state during a year must file a state business tax return has been a sore point with the motorcoach industry for nearly a decade.

The nuisance tax has been periodically attacked by the industry but previous efforts to get it lifted have failed.

Now, the industry is encouraged by the action of state Sen. Jeff Van Drew whos sponsoring a bill in the New Jersey Senate that, if passed, would prohibit the imposition of the corporate business tax on out-of-state carriers that bring passengers to New Jersey.

While there currently is a tax exemption for out-of-state operators that conduct five or fewer trips per year, carriers still must register with the state by filing a nexus acknowledgement form.

Over the years, many operators have stopped bringing groups to New Jersey because of the tax, the hassle and the states sometimes aggressive enforcement.

The new effort by Van Drew is being supported by industry trade groups and others who rallied for a press event earlier this month in Atlantic City.

Victor Parra, president of the United Motorcoach Association, said motorcoach traffic to Atlantic City had dropped 40 percent since the tax was enacted in 2001.

"Hopefully they'll come back once we get this corporate franchise tax removed," Parra told New Jersey newspaper reporters.

Motor Coach Canada, the trade group that represents private bus operators across Canada, issued a statement saying it supports Van Drew and his bid to deep six the tax.

"We have written to Senator Van Drew in support of his efforts to scrap the tax, as we believe it drives tourism revenues away from New Jersey and this hurts tourism-dependant businesses in that state," said Brian Crow, president and CEO of Motor Coach Canada.

"We told the senator that many (Motor Coach Canada) members are telling us they limit their New Jersey trips to fewer than six per year to avoid the hassle of having to file tax returns. Others tell us they just don't bother taking trips to New Jersey anymore and, instead, take Canadian charter-and-tour groups to other northeast U.S. destinations where (the corporate bus tax) is not an issue.

"Hopefully, our letter of support will help Senator Drew in his efforts to have the misguided tax abolished," said Crow.

A companion bill has been introduced in the New Jersey General Assembly by three Democratic assemblymen.