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UEZ in Jersey City

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Posted by GET NJ on June 19, 2004 at 17:45:10:

What is the Urban Enterprise Zone?

The Urban Enterprise Zone (UEZ) is a state-designated program to alleviate unemployment in 30 municipalities across the state. It allows businesses to charge a reduced sales tax rate by 50 percent. State sales tax in New Jersey is currently 6 percent, so participating UEZ retailers can charge 3 percent sales tax. In Jersey City, the Urban Enterprise Zone covers a third of the city.

Recently, Jersey City’s UEZ expanded to include more inner-city businesses and was re-mapped as part of the ongoing neighborhood revitalization.

The expansion, which was approved by the state last December, made 455 new businesses eligible to join the program.

How does the Urban Enterprise Zone Benefit Merchants?

Member retailers are allowed to charge 3 percent sales tax, which they are able to announce in their advertisements. All member businesses are also allowed to make purchases that are utilized for their business at their business tax-free. Non-retailers are able to apply for tax credits for new hires, as well as unemployment insurance-based awards.

How does the Urban Enterprise Zone Benefit Consumers & City Residents?

Consumers who shop in the Urban Enterprise Zones save money by paying a reduced sales tax. City residents benefit from the program, because funds generated from the sales tax collection are used for capital investments in municipal services for Jersey City’s Urban Enterprise Zone areas. For example, this year UEZ funds helped purchase new police cars, CCTV cameras, and façade improvements.

For information about the Urban Enterprise Zone or how to join, contact Roberta Farber at the Jersey City Ecomonic Development Corporation, 30 Montgomery Street, Suite 820, or call (201) 3337797, ext. 25.

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