On December 31, 2016, at 11:59 p.m., five Urban Enterprise Zones (UEZ) will expire. Your UEZ-qualified business will be immediately affected if located in one of these five zones.
The zones are:
Beginning January 1, 2017, your business can no longer collect Sales Tax at a reduced rate. Your business must collect and remit Sales Tax at the full effective Sales Tax rate of 6.875%.
Your business will receive an ST-2, Sales Tax Certificate of Authority, which will replace your UZ-2, Urban Enterprise Zone Certificate of Authority. Your UZ-2 expires December 31, 2016, at 11:59 p.m.
Your business is no longer eligible for any UEZ incentives or benefits including:
- Collecting Sales and Use Tax at half the Sales Tax rate
- UEZ Sales Tax exemptions certificates
- UEZ Corporation Business Tax Employees Credit/Investment Tax Credit and Credit Carry Forward
- Sales and Use Tax exemption for natural gas and electricity purchased by certain manufacturers
Sales Tax Exemption for Purchases
Your business cannot use the Urban Enterprise Zone Exemption Certificate (Form UZ-5) or the Contractor’s Exemption Certificate (Form UZ-4) on or after January 1, 2017. These certificates will no longer be valid for Sales Tax exemptions on purchases of tangible personal property and services used or consumed exclusively by the qualified businesses at their UEZ location.
Your business must pay the full amount of Sales Tax on all taxable purchases unless you issue the seller a non-UEZ exemption certificate (e.g. Form ST-3 for resale, Form ST-4 for exempt use, ST-5 for exempt organization).
For a complete listing of Sales Tax exemption certificates, review Tax Topic Bulletin S&U-6, Sales Tax Exemption Administration.
Filing Sales and Use Tax Returns
Your business must file the December 2016 monthly Urban Enterprise Zone Return (UZ-50) by January 20, 2017. This is the final UZ-50 return you will file.
Your business will be required to file a New Jersey Sales and Use Tax Quarterly Return (ST-50) every quarter. The first quarterly return covers all sales from January 2017 through March 2017 and is due on April 20, 2017.
You may be required to file an ST-51, Monthly Remittance, if
- You collected more than $30,000 in Sales Tax in 2016 and
- The amount of Sales Tax collected for the month is greater than $500
For more information about filing and paying your Sales and Use Tax, visit Sales and Use Tax Filing Information.
Refunds - UEZ Purchases
You may file a refund claim if your business paid Sales and Use Tax in error when making a UEZ-related purchase before December 31 at 11:59 p.m. Refund claims for UEZ-related purchases must be filed within one year of when the tax is paid using Form A-3730-UEZ.
We understand that you may have questions or concerns. Here is how to reach us: