Legislation sponsored by Senators Jeff Van Drew and Jim Whelan to support businesses in urban enterprise zones, by providing them an immediate sales tax break when purchasing equipment and other items for their businesses – instead of requiring them to navigate bureaucratic red tape to apply for the sales tax exemption – has been signed into law by Governor Christie.
The law (S-2132) provides all businesses located in one of the state’s urban enterprise zones (UEZ’s) with a sales tax exemption when making purchases for their businesses. Under previous state law, only small businesses with sales of less than $10 million are eligible for the “point of sale” exemption; other businesses were required to apply to the state for a reimbursement.
“UEZ-based businesses are critical to creating jobs and spurring economic growth in our downtowns,” said Van Drew (D-Cape May/Atlantic/Cumberland). “Providing them an immediate tax exemption on purchases will help those trying to remain afloat in this economy and place all zone businesses on the same playing field when it comes to buying products for their operations.”
“The state used the sales tax exemption as a means of attracting businesses to urban enterprise zones, and then made it extremely difficult for them to take advantage of it,” said Senator Whelan (D-Atlantic). “This law eliminates the burden on companies of having to file unnecessary paperwork for the ability to receive the benefits they were promised by the state, and gives all businesses the tax break at the point of sale.”
The Senate approved the bill in January by a vote of 40-0, followed by a 74-2-2 vote in the Assembly.