On Friday, Governor Christie issued a conditional veto for A-4189. This legislation would have allowed the five communities of Bridgeton, Camden, Plainfield, Trenton and Newark to retain their UEZ designation for an additional two years. The UEZ designation for these five communities expired on December 31, 2016, at 11:59 p.m.
NJBIA is concerned about the impact of the conditional veto, as we supported the bill throughout the legislative process. For a copy of the Governor’s Conditional Veto, please click here.
All businesses located in these zones must continue to collect and remit Sales Tax at the full effective Sales Tax rate of 6.875 percent. For more information, please read the NJ Division of Taxation’s notice on the issue by clicking here.
New Jersey’s UEZ program was enacted in 1983 and exists to foster an economic climate that revitalizes designated urban communities and stimulates their growth by encouraging businesses to develop and create private sector jobs through public and private investment. Businesses in UEZs are allowed to charge half of the state’s regular sales tax rate and receive incentives such as business-to-business tax exemptions, subsidies for unemployment insurance, and tax credits for hiring and investing.