On Thursday, the Assembly Appropriations Committee favorably reported A-5438, which would clarify the process for appropriating revenue under the State Urban Enterprise Zone (UEZ) Program for use within the UEZs.
The bill is designed to overcome administrative issues identified during attempts to implement provisions of a recent amendment (P.L.2021, c.197) to the “New Jersey Urban Enterprise Zones Act,” (NJUEZA) P.L.1983, c.303 (C.52:27H-60 et seq.). Specifically, this bill would:
Provide that revenues collected in UEZs from retail sales subject to the 50% sales tax exemption would be deposited in the Zone Assistance Fund (ZAF);
modify NJUEZA language to provide that UEZ revenue will flow directly to the ZAF;
Provide that sales of medical and recreational cannabis, and related supplies, are excluded from the term “retail sales” as used in the NJUEZA and, like alcoholic beverages and other goods and services, would not be eligible for a reduction in sales tax under the NJUEZA.
S-3837, the Senate companion bill passed in June. The League supports this legislation. Urban Enterprise Zones are a vital economic development tool for communities across the state. The Assembly will consider this legislation on Monday, January 8.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.