Bill Text: NJ A174 | 2012-2013 | Regular Session | Introduced
Bill Title: Broadens criteria for certain municipalities to qualify as having UEZ-impacted business districts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A174 Detail]
Download: New_Jersey-2012-A174-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblyman RALPH R. CAPUTO
District 28 (Essex)
SYNOPSIS
Broadens criteria for certain municipalities to qualify as having UEZ-impacted business districts.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning UEZ-impacted business districts and amending P.L.2001, c.347.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2001, c.347 (C.52:27H-66.2) is amended to read as follows:
3. The authority shall designate a classification known as a "UEZ-impacted business district" for a municipality which can demonstrate to the authority that its business district is economically distressed and is being negatively impacted by the presence of two or more [adjacent] qualifying municipalities which: (1) are adjacent to a municipality which submits an application to the authority for the classification of UEZ-impacted business district; and (2) have enterprise zones in which 50% less sales tax is collected pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80).
(cf: P.L.2001, c.347, s.3)
2. Section 4 of P.L.2001, c.347 (C.52:27H-66.3) is amended to read as follows:
4. a. A municipality shall apply to the authority for the classification of UEZ-impacted business district by submitting an application as required by the authority along with detailed findings made after a public hearing that the business district is economically distressed and that the [adjacent] enterprise zones in the qualifying municipalities adjacent to a municipality which applies to the authority for the classification of UEZ-impacted business district, are having a negative impact upon the municipality's business district.
b. In according consideration for designation of the UEZ-impacted business district classification authorized pursuant to section 3 of P.L.2001, c.347 (C.52:27H-66.2), the [following criteria shall be utilized by the] authority [:
(1)] shall verify that the district shall be located in a municipality which [is between] shares a border, in whole or in part, with two municipalities each of which has an enterprise zone [; and
(2) the borders of the two enterprise zones of the adjacent municipalities shall in part be contiguous to the border of the applicant municipality].
(cf: P.L.2001, c.347, s.4)
3. Section 5 of P.L.2001, c.347 (C.52:27H-66.4) is amended to read as follows:
5. a. A qualified business within a UEZ-impacted business district authorized pursuant to section 3 of P.L.2001, c.347 (C.52:27H-66.2) shall be entitled to an exemption to the extent of 50% from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) in accordance with section 21 of the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-80) to the same extent as that granted to qualified businesses in the [adjacent] enterprise zones in the qualifying municipalities which are adjacent to a municipality in which a UEZ-impacted business district has been authorized, provided that the qualified business applies to the Director of the Division of Taxation in the Department of the Treasury for certification pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80), meets the eligibility criteria of section 27 of P.L.1983, c.303 (C.52:27H-86), and satisfies the annual certification requirements of section 28 of P.L.1983, c.303 (C.52:27H-87).
b. The reduced rate revenues authorized by this section and received from the taxation of retail sales made by qualified businesses in the UEZ-impacted business district shall be deposited in the General Fund and not allocated in accordance with section 21 of the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-80), to the enterprise zone assistance fund.
c. Other than the reduction in sales tax rate provided to qualified businesses pursuant to this section, no tax credits, incentives, programs or other benefits of the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.), shall be available to businesses in the district as a result of a UEZ-impacted business district designation.
(cf: P.L.2001, c.347, s.5)
4. Section 6 of P.L.2001, c.347 (C.52:27H-66.5) is amended to read as follows:
6. When the duration of one or more of the enterprise zones within the qualifying municipalities, adjacent to the municipality having an authorized UEZ-impacted business district, expires but the UEZ-impacted business district continues to be adjacent to one or more remaining qualifying municipalities having enterprise zones, the authority shall review the designation of the UEZ-impacted business district. If upon conducting a hearing, the authority finds that the business district continues to be economically distressed and negatively impacted by the remaining [adjacent] enterprise zone or zones within the qualifying municipality or municipalities having an enterprise zone, the UEZ-impacted business district designation shall be continued. The designation of UEZ-impacted business district shall terminate automatically when the duration of the last enterprise zone within the qualifying municipality adjacent to a qualifying municipality in which the district [ends] is located, has expired.
(cf: P.L.2001, c.347, s.6)
5. This act shall take effect immediately.
STATEMENT
This bill broadens the criteria for certain municipalities to qualify as "UEZ-impacted business districts." Currently, in order for a business district within a municipality to be deemed eligible as a "UEZ-impacted business district," the applicant municipality must demonstrate in part, to the New Jersey Urban Enterprise Zone Authority (the "authority"), that its business district is economically distressed and is being negatively impacted by the presence of two or more enterprise zones that are adjacent to the business district. Under the bill, that provision is changed so that the applicant municipality needs to demonstrate to the authority that the municipality itself is adjacent to two or more municipalities having enterprise zones, and that the borders of the zones need not be adjacent to the proposed "UEZ-impacted business district."
