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Urban Enterprise Zone (UEZs)
Overview

Urban Enterprise Zones (UEZs) are created with the goal of stimulating economic activity in distressed areas. As part of these efforts, the State allows businesses within UEZs to collect lower Sales Taxes on many purchases and provides them with other benefits, including other forms of tax relief. Five UEZ designations expired on December 31, 2016. New Jersey still has 27 UEZs in 32 cities.

Some of the benefits available to qualified businesses in a UEZ are:

  • The right to purchase items (except motor vehicles and energy) and most services (except telecommunications and utility services) without paying Sales Tax;
  • Corporation Business Tax credits for certain businesses hiring new employees; and
  • If a certified seller, the right to apply a partial Sales Tax exemption to most taxable sales of tangible personal property that occur in the UEZ. The exemption allows businesses to charge half the State Sales Tax rate on exempt sales. The current Sales Tax rate in UEZs is 3.4375%.

The Urban Enterprise Zone Authority determines which businesses qualify for tax exemptions and other benefits. To be qualified, a business must apply online using the UEZ Business Certification System, which is accessed through the State’s Premier Business Services website (See Link. Refer to the step-by-step instructions for assistance with the registration process.) Once certified, the business must submit an annual report and apply for recertification every three years.

Go to requirements to see which transactions qualify for the reduced Sales Tax rate. For more information about Urban Enterprise Zones, see Urban Enterprise Zone Tax Questions and Answers and UEZ Program Procedures.

The Division of Taxation has promulgated requirements for deliveries of purchases made in the zones. View entire text of the requirements.

Last Updated: Tuesday, 01/10/17



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