Frequently Asked Questions
Concerning UZ-5-SB-A Application
(Last Modified: 08/29/2006)
All UEZ qualified businesses were sent a letter and UZ-5-SB-A application on August 10, 2006. The following are some questions and answers related to the UZ-5-SB-A application.
- For questions 8 and 9 on the application form, what do I enter for the "Qualified Business Permit Number" or the "UEZ File Number"?
The Qualified Business Permit Number, also known as the Exempt Purchase Number, is printed in the upper right corner of your previously-issued UZ-5 exemption certificate. Your UEZ file number appears on all correspondence from the UEZ Authority. For further information, you should contact the Local Coordinator for your UEZ.
- How do I determine whether my business had annual gross receipts under $1,000,000?
"Annual gross receipts" refers to your gross receipts of all types from all your locations (in and out of UEZ and worldwide). When referencing your tax return (as instructed for the boxes on the application form), if your 2005 tax return is still not complete, use the pertinent line from your 2004 return. If the business is so new that it does not have a prior year return, you may check off the top box (for receipts under a million.) If your annual gross receipts are $1,000,000 or more (bottom box checked), do not attach a copy of your prior year tax return.
- Why must I complete the UZ-5-SB-A application, particularly if my receipts are at least $1,000,000?
Businesses with annual gross receipts of $1,000,000 or more will be sent the paperwork to apply for a sales tax refund. Further, pursuant to P.L. 2006, c. 34, the Division of Taxation is required to determine whether each UEZ qualified business is a "small qualified business." If the business has less than $1,000,000 in annual gross receipts in the prior tax period, the Division will send it the UZ-5-SB exemption certificate.
- May I continue to use my UZ-5-SB (Temporary), if my annual gross receipts were less than $1,000,000?
Yes, until October. For purchases delivered on or after Oct. 1, 2006, you must use the UZ-5-SB issued by the Division of Taxation, instead of the UZ-5-SB (Temporary).
- If my UEZ business is a retailer certified to charge 3.5% sales tax, how do I treat purchases made by UEZ qualified businesses?
You cannot accept UZ-5 certificates. You may still charge 3.5% sales tax on all in-person sales, including to UEZ qualified businesses that do not have a UZ-5-SB (they need not provide any exemption certificate for the UEZ 3.5% sales tax.) If, however, a UEZ business provides a copy of a UZ-5-SB (see above), you may exempt the UEZ small qualified business from paying sales tax.
- If my UEZ business does not qualify to be a "small qualified business," what should I do differently?
Stop using the UZ-5 exemption certificate (as of 7/15/06), pay sales tax to suppliers and keep documentation of purchases and of paying NJ sales tax, such as invoices, for purposes of applying for a refund of sales tax. Also, you must self-assess New Jersey use tax as may apply and later apply for a refund. Reminder: your purchase may still qualify for an exemption under the sales tax law exemptions. For example, for manufacturing equipment or "wrapping supplies," use the ST-4 exempt use certificate; for purchases for resale, use an ST-3 certificate. See Bulletin S&U-6 or call Customer Services, 609-292-6400, for details.
- May my UEZ business still use a UZ-4 exemption certificate, even if it's not a UEZ "small qualified business"?
Yes. Your contractors doing improvements and repairs may continue to be given and use the UZ-4 to be exempt from NJ sales and use tax on purchases of materials and supplies. However, if you or your own employees make the improvements or repairs, they cannot be treated as contractors and you cannot use the UZ-4 for exemption.
- Do I still need to complete the annual Application for Recertification as a UEZ qualified business?
Yes. Questions concerning the recertification application should be directed to your Zone Local Coordinator.