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New Jersey Urban Enterprise Zones to expire January 2017

  • Nov 22, 2016 | Gail Cole

 Five New Jersey Urban Enterprise Zones to expire at the end of 2016.

Five Urban Enterprise Zones (UEZ) in New Jersey are set to expire at 11:59 p.m. on December 31, 2016.

Beginning January 1, 2017, businesses located in these zones will no longer be entitled to collect sales tax at the reduced UEZ rate. Instead, the full 6.875% tax rate applies to all taxable transactions. The following additional incentives/benefits are also no longer valid as of January 1:

  • UEZ sales tax exemption 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

Businesses in the affected zones should receive an ST-2, Sales Tax Certificate of Authority from the New Jersey Division of Taxation; it replaces the UZ-2, Urban Enterprise Zone Certificate of Authority as of January 1, 2017.

Affected zones:

  • Bridgeton
  • Camden
  • Newark
  • Plainfield
  • Trenton

Additional information is available from the New Jersey Division of Taxation.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.