Bill Text: NJ A2762 | 2024-2025 | Regular Session | Introduced
Bill Title: "Food Desert Elimination Act"; provides incentives to supermarkets and grocery stores that locate in "food deserts."
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Aging and Human Services Committee [A2762 Detail]
Download: New_Jersey-2024-A2762-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman LOUIS D. GREENWALD
District 6 (Burlington and Camden)
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Co-Sponsored by:
Assemblywomen Quijano, Pintor Marin, Lampitt, Murphy, Assemblyman DeAngelo and Assemblywoman Reynolds-Jackson
SYNOPSIS
"Food Desert Elimination Act"; provides incentives to supermarkets and grocery stores that locate in "food deserts."
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing incentives to supermarkets and grocery stores in certain areas and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.) and P.L.2013, c.63 (C.33:1-12.50 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known, and may be cited, as the "Food Desert Elimination Act."
2. a. The Legislature finds and declares that: (1) there are certain areas of the State, known as "food desert" communities, in which residents are unable to obtain reasonable and adequate access to nutritious foods and, in particular, to fresh fruits and vegetables; (2) the inaccessibility of nutritious food in food desert communities has been attributed, in large part, to the absence of supermarkets and grocery stores in those communities; (3) low-income families are more likely than others to live in food desert communities and to lack the transportation or financial resources necessary to reach distant wholesome markets; and (4) the establishment of financial incentives to supermarkets and grocery stores is a reasonable means by which to ensure that residents of food desert communities in the State are provided with reasonable access to nutritious, fresh, and delicious produce, and are afforded the opportunity thereby to make healthier eating choices for themselves and for their families.
b. The Legislature therefore determines that it is both reasonable and necessary to authorize the New Jersey Economic Development Authority to establish a program that provides incentives to supermarkets and grocery stores to establish and retain locations in food desert communities in order to provide a consistent, and easily accessible, source of fresh produce to residents in those communities.
3. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Authority" means the New Jersey Economic Development Authority.
"Department" means the Department of Agriculture.
"Food desert community" or "community" means a physically contiguous area in the State in which residents have limited access to nutritious foods, such as fresh fruits and vegetables, through supermarkets and grocery stores and which has been designated as a food desert community pursuant to subsection b. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Program" means the Food Desert Elimination Program established in section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Special retail distribution permit" means a nontransferable permit to sell any alcoholic beverages for consumption off the permitted premises, as described in section 10 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Supermarket or grocery store" means a retail facility of at least 18,000 square feet, of which at least 90 percent is occupied by a full-service supermarket or grocery store.
4. a. There is established the Food Desert Elimination Program to be administered by the New Jersey Economic Development Authority. The program shall include tax credit components, as provided in sections 5 and 6 of P.L. , c. (C. and C. ) (pending before the Legislature as this bill), and a retail alcoholic beverage permit component, as provided in sections 7 and 10 of P.L. , c. (C. and C. ) (pending before the Legislature as this bill), in order to incentivize businesses to establish and then retain new supermarkets and grocery stores in food desert communities.
b. The authority, in consultation with the Department of Agriculture and the Department of Community Affairs, shall initially designate not more than 75 separate geographic areas that are most in need of a supermarket or grocery store as food desert communities in this State. The authority shall develop criteria for the designation of food desert communities, but each separate food desert community shall consist of a distinct geographic area with a single defined border. The criteria shall, at a minimum, incorporate analysis of municipal or census tract poverty statistics, food desert information from the United States Department of Agriculture's Economic Research Service, and healthier food retail tract information from the federal Centers for Disease Control and Prevention. The authority may also consider data related to municipal or census tract population size and population density in making food desert community designations pursuant to this section. The authority may designate additional food desert communities once every three years following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
5. a. For privilege periods beginning on or after January 1 next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer that establishes and opens for business to the public the first supermarket or grocery store in a designated food desert community, and that meets the requirements of this section and the rules and regulations adopted pursuant thereto, and for the three privilege periods next following the initial opening, shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to the total amount the taxpayer is assessed in property taxes by the municipality in which the supermarket or grocery store is located during the full privilege period for the property where that supermarket or grocery store is open for business to the public.
b. (1) To qualify for the tax credit allowed pursuant to this section, a taxpayer shall apply to the authority for a certification, and the application shall include the following:
(a) from the department, a certification that the taxpayer qualifies as a supermarket or grocery store, as defined in section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), is located in a food desert community designated pursuant to subsection b. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), and is the first supermarket or grocery store to be established and opened for business in that designated food desert community after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill); and
(b) from the municipality in which the supermarket or grocery store is located, a certification of the amount of property tax the taxpayer is assessed for the applicable privilege period pursuant to subsection a. of this section.
(2) The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall be as prescribed by the Director of the Division of Taxation in the Department of the Treasury. The amount of the credit applied pursuant to this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), shall not reduce a taxpayer's tax liability for a privilege period to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5). Any credit shall be valid in the privilege period in which the certification is approved and any unused portion thereof may be carried forward into the next 10 privilege periods or until depleted, whichever is earlier.
6. a. For taxable years beginning on or after January 1 next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer that establishes and opens for business to the public the first supermarket or grocery store in a designated food desert community, and that meets the requirements of this section and the rules and regulations adopted pursuant thereto, and for the three taxable years next following the initial opening, shall be allowed a credit against the tax due pursuant to N.J.S.54A:1-1 et seq., in an amount equal to the total amount the taxpayer is assessed in property taxes by the municipality in which the supermarket or grocery store is located during the full tax year for the property where that supermarket or grocery store is open for business to the public.
b. (1) To qualify for the tax credit allowed pursuant to this section, a taxpayer shall apply to the authority for a certification, and the application shall include the following:
(a) from the department, a certification that the taxpayer qualifies as a supermarket or grocery store, as defined in section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), is located in a food desert community designated pursuant to subsection b. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), and is the first supermarket or grocery store to be established and opened for business in that designated food desert community after the effective date of P.L. , c. (C. and C. ) (pending before the Legislature as this bill); and
(b) from the municipality in which the supermarket or grocery store is located, a certification of the amount of property tax the taxpayer is assessed for the applicable taxable year pursuant to subsection a. of this section.
(2) The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq. for a taxable year shall be as prescribed by the Director of the Division of Taxation in the Department of the Treasury. The amount of the credit applied pursuant to this section against the tax imposed pursuant to N.J.S.54A:1-1 et seq. shall not reduce a taxpayer's tax liability for a taxable year to an amount less than zero. Any credit shall be valid in the taxable year in which the certification is approved and any unused portion thereof may be carried forward into the next 10 taxable years or until depleted, whichever is earlier.
c. A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of the taxpayer in respect of a distributive share of partnership income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.
A taxpayer that is a New
Jersey S corporation shall not be allowed the credit directly under
N.J.S.54A:1-1 et seq., but the amount of credit of a taxpayer in respect of a
pro rata share of S corporation income shall be determined by allocating to the
taxpayer that proportion of the credit acquired by the New Jersey S corporation
that is equal to the taxpayer's share, whether or not distributed, of the total
pro rata share of S corporation income of the New Jersey S corporation for its
taxable year ending within or with the taxpayer's taxable year.
7. The New Jersey Economic Development Authority shall direct the Director of the Division of Alcoholic Beverage Control to issue, consistent with section 10 of P.L. , c. (C. ) (pending before the Legislature as this bill), a special retail distribution permit to one or more individual corporations or other types of legal entities operating the first supermarket or grocery store established and opened for business in each designated food desert community after the effective date of P.L. , c. (C. and C. ) (pending before the Legislature as this bill) that qualifies for incentives under the program.
8. The authority, in consultation with the department, the Director of the Division of Taxation in the Department of the Treasury, the Superintendent of State Police, and the Director of the Division of Alcoholic Beverage Control shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to carry out the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
9. Within one year of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and for the next three years thereafter, the authority shall annually submit a report to the Governor, the State Treasurer, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature, on the effectiveness of the tax credit in establishing supermarkets and grocery stores in food desert communities.
10. a. The Director of the Division of Alcoholic Beverage Control, upon the direction of the New Jersey Economic Development Authority, pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall issue a special retail distribution permit to an individual corporation or other type of legal entity for use in connection with the operation of a supermarket or grocery store established and located within a "food desert community" designated pursuant to subsection b. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill). The permit shall entitle the holder to sell alcoholic beverages in original containers for consumption off the premises of the supermarket or grocery store.
A permit issued pursuant to this section shall be restricted to the premises of the supermarket or grocery store for which the permit was issued, and shall not be transferred for use in connection with another premises.
b. The restriction concerning the number of plenary retail distribution licenses that may be issued in a municipality pursuant to section 2 of P.L.1947, c.94 (C.33:1-12.14) and the limitation on the acquisition of alcoholic beverages licenses pursuant to section 1 of P.L.1962, c.152 (C.33:1-12.31) shall not be applicable to a permit issued pursuant to this section.
c. The fee for the initial issuance of a permit issued pursuant to this section shall be based upon the average sales price of plenary retail distribution licenses in the municipality during the five years immediately preceding the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). If less than three plenary retail distribution licenses have been sold in the municipality within the previous five years, the municipality shall obtain an appraisal, at the applicant's expense, to determine the appropriate fair market value of the permit. The appraisal process shall include an examination of previous transactions in the municipality, as the case may be, and shall reflect what a willing buyer, under no pressure to buy, would pay a willing seller, under no pressure to sell, for a plenary retail distribution license in the municipality. The initial issuance fee established pursuant to this section for a special retail distribution permit shall be reduced by the fair market value of the limitation on transferability, as set forth in subsection a. of this section.
d. A special retail distribution permit issued pursuant to this section shall not be issued to any person who would not qualify as a plenary retail distribution licensee pursuant to Title 33 of the Revised Statutes and rules and regulations of the director.
e. Except as otherwise provided by this section, a permit shall be used in a manner consistent with a plenary retail distribution license issued pursuant to R.S.33:1-12 and shall be subject to any other fees and regulations promulgated by the director.
11. This act shall take effect on the first day of the seventh month next following enactment, except that the New Jersey Economic Development Authority and the Division of Alcoholic Beverage Control may take administrative action in advance as necessary to effectuate the bill.
STATEMENT
This bill, the "Food Desert Elimination Act," establishes the Food Desert Elimination Program (program) and requires the New Jersey Economic Development Authority (authority) to administer the program. The bill further requires the authority, in consultation with the Department of Agriculture, to initially designate no more than 75 physical boundaries of food desert communities in the State.
The program provides tax credits to certain supermarkets and grocery stores that newly open in food desert communities. Under the program, a taxpayer that opens the first supermarket or grocery store in each designated food desert community after the bill's effective date will be allowed a credit against certain taxes due, in an amount equal to the total amount the taxpayer is assessed in property taxes by the municipality in which the supermarket or grocery store is located, during the first full tax year for the property where the supermarket or grocery store is open for business to the public, and for the three subsequent tax years after opening.
Under the program, the authority will also be required to direct the Director of the Division of Alcoholic Beverage Control in the Department of Law and Public Safety to issue a special retail distribution permit to the first supermarket or grocery store that is established in each food desert community after the bill's effective date. The permit holder would be entitled to sell alcoholic beverages in original containers for consumption off the premises of the supermarket or grocery store. The permit would be restricted to the premises of the supermarket or grocery store for which the permit was issued, and will not be transferrable for use in connection with another premises. The bill provides that the special retail distribution permit is to be used in a manner consistent with a plenary retail distribution license issued pursuant to current law, and is to be subject to any other fees and regulations promulgated by the director.
Under current law, a municipality may only issue one plenary retail distribution license for every 7,500 persons residing in that municipality. This limitation on the number of plenary retail distribution licenses would not apply to the issuance of a special retail distribution permit under the program. In addition, current law prohibits a person from holding an interest in more than two retail licenses unless that person held more than two retail licenses prior to August 3, 1962. This limitation also would not apply to the issuance of a special retail distribution permit.
The special retail distribution permit's initial issuance fee is based upon the average sales price of plenary retail distribution licenses during the five years preceding the bill's enactment in the municipality in which the supermarket or grocery store is located. If less than three licenses have been sold in the municipality within the previous five years, the municipality is required to obtain an appraisal, at the applicant's expense, to determine the appropriate fair market value of the permit. The initial issuance fee is to be reduced by the fair market value of the limitation on the permit's transferability.
The bill takes effect on the first day of the seventh month after enactment, but the authority and the Division of Alcoholic Beverage Control are permitted to take administrative action in advance of the effective date, as necessary to effectuate the bill.
