A decision is expected soon on whether the New Jersey Supreme Court will grant certification in a lawsuit filed by Reed Smith attorneys on behalf of a client challenging the state’s litter-generating tax, claiming that the state treasurer is spending tens of millions of state money outside the constitutionally required annual appropriation process.

In Cargill Meat Solutions v. Director, Division of Taxation, the Appellate Division affirmed a tax court opinion which found that Cargill is subject to the litter-generating tax that imposes a tax on the sale of litter-generating products in this state involving manufacturers, wholesalers, distributors and retailers. In New Jersey, Cargill stores and distributes meat products through its Swedesboro facility. The litter fee is allowed to be charged to businesses under the Clean Communities and Recycling Grant Act.