Tax Development Nov 22, 2016
Effective December 31, 2016 at 11:59 p.m., Urban Enterprise Zones (“UEZ”) for Bridgeton, Camden, Newark, Plainfield, and Trenton will expire. Starting January 1, 2017, businesses in these zones must start collecting the full state sales tax rate of 6.875%. Other benefits that will lapse include: usage of UEZ Exemption Certificate (Form UZ-5), UEZ Corporation Business Tax Employees Credit/Investment Tax Credit Carry Forward, and sales and use tax exemption for natural gas and electricity purchased by certain manufacturers.
The UEZ Certificate of Authority (Form UZ-2) will be replaced with a general Sales Tax Certificate of Authority (Form ST-2). Such businesses must file their final UEZ Return (Form UZ-550) by January 20, 2017. Any outstanding refund claims related to UEZ-related purchases, must be filed within one year of when the tax is paid by using Form A-3730-UEZ.
For transactions occurring on or after January 1, 2017, such businesses will need to file either Form ST-51 for monthly returns or Form ST-50 for quarterly returns depending on how much such businesses collected for sales tax in 2016.
For more information please see New Jersey Notice to Qualified Businesses Located in Urban Enterprise Zones located at http://www.state.nj.us/treasury/taxation/ueznotice.shtml.