TRENTON – 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 – was approved today by the full Senate.
The bill (S-2132) would provide all businesses located in one of the state’s 33 urban enterprise zones (UEZ’s) with a sales tax exemption when making purchases for their businesses. Currently, only small businesses with sales of less than $10 million are eligible for the “point of sale” exemption; other businesses must apply to the state for a reimbursement.
“UEZ-based businesses are critical to creating jobs and spurring economic growth in many of the state’s historic downtowns,” said Van Drew (D-Cape May/Atlantic/Cumberland). “An immediate tax exemption will incentivize businesses to locate in urban enterprise zones and send the message that we recognize and support the contributions they make to our communities.”