Governor Signs CIANJ-Supported Bill to Enhance UEZ Tax Benefits, 12/17/2008

CIANJ Applauds Signature of Common-Sense Legislation to Improve Urban Enterprise Zones

Legislation will provide point-of-sale exemption to more small businesses and reduce bureaucratic hurdles

Paramus, New Jersey – The Commerce and Industry Association of New Jersey (CIANJ) today applauded Governor Corzine and legislature for their overwhelming support of legislation to ease the administrative burden on small Urban Enterprise Zone (UEZ) businesses.

UEZ companies are exempt from paying the state sales tax on certain purchases. Currently, businesses with annual gross receipts of more than $3 million are required to pay the sales tax, and then apply for a rebate. A-2720/S-5, which was signed today, would allow companies with up to $10 million in gross receipts to benefit from sales tax exemptions at the point-of-sale.

“Unnecessary regulations take money out of the economy, and make the job of a small business owner even more difficult during these times,” said CIANJ President John Galandak. “The legislation signed today offers a common-sense step toward improving the state’s business climate.”

The Association also noted the overwhelming support for the change from the legislature. The measure passed the Senate by a vote of 36-0 after passing the Assembly by a tally of 70-5. It was signed just two days after final passage, and such strong support sends a positive message to companies considering locating to or expanding within New Jersey.

“When New Jersey emerges from this recession, companies need to be as well-positioned as possible to rebuild the state’s economy and put more of our residents back to work. The legislation signed today moves us toward that goal.” Galandak concluded.