UEZ
Monday, November 27, 2006
URBAN ENTERPRISE ZONES QUESTIONS AND ANSWERS
GENERAL
1. When can a business owner obtain tax benefits in an Urban Enterprise Zone or Urban
Enterprise Zone impacted business district?
Answer -
When it is certified as a qualified business, within a designated zone, by the Urban
2. What is an Urban Enterprise Zone?
Answer -
Enterprise Zone Authority. Exemption certificates will then be issued by the Division of Taxation,
effective on the date of certification.
A city which has suffered economic problems and meets certain other criteria may request
3. Where are Urban Enterprise Zones usually located?
Answer-
that the Urban Enterprise Zone Authority designate part of the city, usually about 30%, as an Urban
Enterprise Zone.
Usually in the industrial and/or commercial portions of a city, within a continuous boundary.
4. What is an Urban Enterprise Zone-impacted business district?
Answer-
In the joint zone of Vineland-Millville the zone is comprised of parts of two adjoining cities, with the
zone having a continuous boundary. The joint zone of Asbury Park-Long Branch has non-continuous
boundaries.
It is an economically-distressed business district that has been negatively impacted by the
5. What is the Urban Enterprise Zone Authority?
Answer -
presence of two or more adjacent Urban Enterprise Zones in which 50% less sales tax is collected.
It is a nine member authority, established under N.J.S.A. 52:27H-60 et seq., consisting of
6. How does the Authority designate zones?
Answer -
the CEO/Secretary of the Commerce and Economic Growth Commission, and the Commissioner's of
Community Affairs, Labor, and the State Treasurer or their designees; together with five public
members.
Upon the enacting of legislation by the State Legislature providing the creation of additional
7. How does the authority designate Urban Enterprise Zones-impacted business districts?
Answer-
Urban Enterprise Zones, the Authority, by reviewing applications of cities, may designate those
municipalities that fulfill the required criteria. The decision is based upon the need of the city for
economic development; the unemployment rate; the percentage of families on welfare; the potential
benefits shown by the application; and similar factors.
A municipality must demonstrate to the Authority that its business district is economically
8. When does a designated zone become effective?
Answer -
distressed and is being negatively impacted by the presence of two or more adjacent enterprise zones
in which 50% less sales tax is collected. In making its decision of whether to designate a
municipality as an Urban Enterprise Zone-impacted business district, the Authority will consider
whether the district is located in a municipality which is between two municipalities each of which has
an enterprise zone and whether the borders of the two enterprise zones of the adjacent municipalities
are contiguous to the border of the applicant municipality.
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When it is designated by the Authority, and has accepted the designation by municipal
9. How many zones have been established?
Answer -
ordinance. There are no benefits for a business until the zone is effective, and the business has been
certified.
The Urban Enterprise Zone Program (UEZ) was enacted in 1983 with a duration of twenty
10. How does a business become certified as a "qualified business" in an Urban Enterprise Zone
or in an Urban Enterprise Zone-impacted business district?
Answer -
years. It authorized the designation of ten zones by the New Jersey Urban Enterprise Zone Authority:
Camden, Newark, Bridgeton, Trenton, Plainfield, Elizabeth, Jersey City, Kearny, Orange and
Millville/Vineland (joint zone).
In 1994 the legislation was amended and ten more zones were added to this successful economic
development program. Of the ten new zones, six were predetermined: Paterson, Passaic, Perth
Amboy, Phillipsburg, Lakewood, Asbury Park/Long Branch (joint zone). The four remaining zones
were selected on a competitive basis. They are Carteret, Pleasantville, Union City and Mount Holly.
The legislation was amended in 1996 to include seven additional zones. They were all predetermined
and include East Orange, Guttenberg, Hillside, Irvington, North Bergen, Pemberton and West New
York. The legislation was amended again in 2002 to include 3 more zones. They include Bayonne
City, Roselle Borough, and a joint zone consisting of North Wildwood City, Wildwood City, Wildwood
Crest Borough, and West Wildwood Borough. Legislation was amended again in 2004 to include
Gloucester City, creating a total of 31 zones in 36 municipalities.
By making application to the local municipal zone coordinator on an Authority application
form. The local coordinator verifies that the business is within the zone or district and forwards the
application to the Authority at 20 West State Street, P.O. Box 820, Trenton, New Jersey 08625-0820