Sep 13 NEW JERSEY URBAN ENTERPRISE ZONE (UEZ) RULES REVISED AND PROGRAM RESTORED

On August 16, 2021, the Urban Enterprise Zone (UEZ) Reform Bill was signed into law that brings about new sales tax considerations for qualified businesses.  The UEZ Program primarily provides indirect funding to businesses and individuals via a reduced state sales tax.

Currently, there are 32 UEZ zones within 37 municipalities, and approximately 7,267 UEZ-certified businesses.

Highlights of the new legislation include:

• Creates a new process for developing a zone development plan.
• Currently designated UEZs can retain UEZ designation for 10 years.
• Caps the business-to-business sales tax exemption at the first $100,000 of purchases.
• Initial $42.5MM Zone Assistance Fund (ZAF) appropriation from the General Fund.

UEZ businesses will need to periodically examine their tangible property or taxable services purchases to ensure they are in compliance with the new $100,000 purchases cap. UEZ businesses should be focused on understanding the various sales and use tax laws and how those laws apply to their businesses.

For more information on this new legislation, including more highlights, exceptions, limitations and applicable municipalities, feel free to reach out to Sax’s advisors by visiting www.saxllp.com.