New Jersey Urban Enterprise Zones to expire January 2017
- Sales Tax Rate Changes
- Nov 22, 2016 | Gail Cole
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 The following additional incentives/benefits are also no longer valid as of January 1: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.
Additional information is available from the New Jersey Division of Taxation.
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