Changes State assistance to urban enterprise zones over seven years by increasing reduced sales tax in enterprise zones and dedicating increase to zone municipalities.

A1575

ASSEMBLY, No. 1575

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman SEAN T. KEAN

District 30 (Monmouth and Ocean)

SYNOPSIS

���� Changes State assistance to urban enterprise zones
over seven years by increasing reduced sales tax in enterprise zones and
dedicating increase to zone municipalities.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning urban enterprise zones and amending
various parts of the statutory law and supplementing P.L.1983, c.303 (C.52:27H-60
et al.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 3 of P.L.1983,
c.303 (C.52:27H-62) is amended to read as follows:

���� 3.��� As used in
[
this act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
:

���� a.���� "Enterprise
zone" or "zone" means an urban enterprise zone designated by the
authority pursuant to
[
this
act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
;

���� b.��� "Authority"
means the New Jersey Urban Enterprise Zone Authority created by
[
this act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
;

���� c.���� "Qualified
business" means any entity authorized to do business in the State of New
Jersey which, at the time of designation as an enterprise zone or a
UEZ-impacted business district, is engaged in the active conduct of a trade or
business in that zone or district; or an entity which, after that designation
but during the designation period, becomes newly engaged in the active conduct
of a trade or business in that zone or district and has at least
[
25%
]

25 percent

of its full-time employees employed at a business location in the zone or
district, meeting one or more of the following criteria:

���� (1)�� Residents within the
zone, the district, within another zone
,
or within a qualifying
municipality; or

���� (2)�� Unemployed for at least
six months prior to being hired and residing in New Jersey, and recipients of
New Jersey public assistance programs for at least six months prior to being
hired, or either of the aforesaid; or

���� (3)�� Determined to be low
income individuals pursuant to the Workforce Investment Act of 1998,
Pub.L.105-220
[
(29
U.S.C. s.2811)
]

(29 U.S.C. s.2801)
;

���� Approval as a qualified
business shall be conditional upon meeting all outstanding tax obligations, and
may be withdrawn by the authority if a business is continually delinquent in
meeting its tax obligations;

���� d.��� "Qualifying
municipality" means any municipality in which there was, in the last full
calendar year immediately preceding the year in which application for
enterprise zone designation is submitted pursuant to section 14 of P.L.1983,
c.303 (C.52:27H-73), an annual average of at least 2,000 unemployed persons,
and in which the municipal average annual unemployment rate for that year
exceeded the State average annual unemployment rate; except that any
municipality which qualifies for State aid pursuant to P.L.1978, c.14
(C.52:27D-178 et seq.) shall qualify if its municipal average annual
unemployment rate for that year exceeded the State average annual unemployment
rate.� The annual average of unemployed persons and the average annual
unemployment rates shall be estimated for the relevant calendar year by the
[
Office of
Labor Planning and Analysis of the
]

State Department of Labor and Workforce Development.� In addition to those
municipalities that qualify pursuant to the criteria set forth above, that
municipality accorded priority designation pursuant to subsection e. of section
7 of P.L.1983, c.303 (C.52:27H-66), those municipalities� set forth in
paragraph (7), paragraph (8) of section 3 of P.L.1995,
c.382 (C.52:27H-66.1), and paragraph (9) of section 3 of P.L.1995, c.382
[
as amended by
section 3 of P.L.2004, c.75 (C.52:27H-66.1)
]
,
and the municipalities in which the three additional enterprise zones,
including the joint enterprise zone, are to be designated pursuant to criteria
according priority consideration for designation of the zones pursuant to
section 12 of P.L.2001, c.347 (C.52:27H-66.7) shall be deemed qualifying
municipalities;

���� e.���� "Public
assistance" means income maintenance funds administered by the Department
of Human Services or by a county welfare agency;

���� f.���� "Zone development
corporation" means a nonprofit corporation or association created or
designated by the governing body of a qualifying municipality to formulate and
propose a preliminary zone development plan pursuant to section 9 of P.L.1983,
c.303 (C.52:27H-68) and to prepare, monitor, administer and implement the zone
development plan;

���� g.��� "Zone development
plan" means a plan adopted by the governing body of a qualifying
municipality for the development of an enterprise zone therein, and for the
direction and coordination of activities of the municipality, zone businesses
,

and community organizations within the enterprise zone toward the economic
betterment of the residents of the zone and the municipality;

���� h.��� "Zone neighborhood
association" means a corporation or association of persons who either are
residents of, or have their principal place of employment in, a municipality in
which an enterprise zone has been designated pursuant to
[
this act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
; which is organized under the provisions of
Title 15 of the Revised Statutes or Title 15A of the New Jersey Statutes; and
which has for its principal purpose the encouragement and support of community
activities within, or on behalf of, the zone so as to (1) stimulate economic
activity, (2) increase or preserve residential amenities, or (3) otherwise
encourage community cooperation in achieving the goals of the zone development
plan;

���� i.���� "Enterprise zone
assistance fund" or "assistance fund" means the fund created by
section 29 of P.L.1983, c.303 (C.52:27H-88);
[
and
]

���� j.���� "UEZ-impacted
business district" or "district" means an
economically-distressed business district classified by the authority as having
been negatively impacted by two or more adjacent urban enterprise zones in
which
[
50%
less
]

the

sales tax is collected pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80)
and
section 9 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill);

����
k.��� �Director� means the
Director of the Division of Taxation in the Department of the Treasury; and

����
l.���� �State Treasurer�
means the Treasurer of the State of New Jersey
.

(cf: P.L.2006, c.34, s.3)

���� 2.��� Section 6 of P.L.1983,
c.303 (C.52:27H-65) is amended to read as follows:

���� 6.��� It shall be the duty of
the authority to:

���� a.���� Promulgate criteria for
the designation of zones pursuant to the provisions of
[
this act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
;

���� b.��� Receive and evaluate
applications of municipalities for the designation of zones;

���� c.���� Enter into discussions
with applying municipalities regarding zone development proposals;

���� d.��� Act as agent of the
State with respect to zone development plans, and in determining the
State-furnished components to be included in those plans;

���� e.���� Designate zones in
accordance with the provisions of
[
this
act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
and promulgate rules and regulations necessary
to carry out its duties under
[
this
act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
;

���� f.���� Exercise continuing
review and supervision of the implementation of zone� development plans;

���� g.��� Receive and evaluate
proposals of qualifying municipalities in which enterprise zones are designated
for funding of projects and increased eligible municipal services from the
enterprise zone assistance fund
as shall be used for the purposes of that
fund and for the uses prescribed in section 29 of P.L.1983, c.303 (C.52:27H-88)
and section 9 of P.L.��� , c.��� (C.������� ) (pending before the Legislature
as this bill)
, and to certify annually to the State Treasurer amounts to be
paid from the enterprise zone assistance fund to support approved projects and
increased eligible municipal services in designated enterprise zones;

���� h.��� Assist and represent
qualifying municipalities in any negotiations with, or proceedings before,
other agencies of State Government or of the federal government, to secure
necessary or appropriate assistance, support
,
and cooperation of those
agencies in the implementation of zone development plans in accordance with the
provisions of
[
this
act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
and any other applicable State or federal law;

���� i.���� Upon request, assist
agencies of municipal government in gathering, compiling
,
and organizing
data to support an application for designation of a zone, and in identifying
and coordinating the elements of a zone development proposal suitable for the
zone sought to be designated;

���� j.���� Provide assistance to
State and local government agencies relating to application for the security of
permits, licenses
,
and other regulatory approvals required by those
agencies, to assure consideration and expeditious handling of regulatory
requirements of any
[
zone
]

qualified

business, zone business association
,
or zone neighborhood association
[
; regulatory
]
.�
Regulatory
agencies of the State and its agencies and instrumentalities may
agree to any simplification, consolidation
,
or other liberalization of
procedural requirements which may be requested by the authority and which is
not inconsistent with provisions of law;

���� k.��� Assist the State in
applying to, or entering into negotiations or agreements with, the federal
government, for federal enterprise zone designations; and

���� l.���� Exercise continuing
review of the implementation of
[
this
act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
, and to report annually to the Governor and
,
pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to
the
Legislature on the effectiveness of enterprise zones in addressing the
conditions cited in
[
this
act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
, including any recommendations for legislation
to improve the effectiveness of operation of those zones.� The report shall be
submitted one year from the effective date of
[
this
act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
, and annually thereafter.

(cf: P.L.1983, c.303, s.6)

���� 3.��� Section 7 of P.L.1983,
c.303 (C.52:27H-66) is amended to read as follows:

���� 7.��� The authority shall
designate enterprise zones from among those areas of qualifying municipalities
determined to be eligible pursuant to P.L.1983, s.303
(C.52:27H-60 et al.)
.�
No more than 32 enterprise zones shall be in effect at any one time.� No more
than one enterprise zone shall be designated in any one municipality.� Except
as otherwise provided by section 11 of P.L.2001, c.347 (C.52:27H-66.6),
any designation granted shall be for a period of 20 years, beginning with the
year in which a zone is eligible for an exemption to the extent of
[
50%
]

50 percent

of the tax imposed under the "Sales and Use Tax Act," P.L.1966,
c.30 (C.54:32B-1 et seq.), and shall not be renewed at the end
of that period.� In designating enterprise zones
,
the authority shall
seek to avoid excessive geographic concentration of zones in any particular
region of the State.� At least six of the 10 additional enterprise zones
authorized pursuant to
this
section
[
3
of P.L.1993, c.367
]

shall be located in counties in which enterprise zones have not previously been
designated and shall be designated within 90 days of the date of the submittal
of an application and zone development plan.� The authority shall accept
applications within 90 days of the effective date of P.L.1993, c.367
(C.52:27H-65.1
et al.)
.� Notwithstanding the provisions of P.L.1983, c.303 (C.52:27H-60 et
seq.) to the contrary,
a qualified business in any of
the six additional
enterprise zones to be designated by the authority pursuant to the criteria for
priority consideration in this section shall be entitled to an exemption to the
extent
[
of
50%
]

provided
in section 9 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill)
of the tax imposed under the "Sales and Use Tax Act,"
P.L.1966, c.30 (C.54:32B-1 et seq.).� The following criteria shall be utilized
in according priority consideration for designation of these zones by the
authority:

���� a.���� One zone shall be
located in a county of the second class with a population greater than 595,000
and less than 675,000 according to the latest federal decennial census and
shall be located in the qualifying municipality in that county with the highest
annual average number of unemployed persons and the highest average annual
unemployment rate for the 1992 calendar year according to the estimate by the
State Department of Labor and Workforce Development;

���� b.��� Two zones shall be
located in a county of the second class with a population greater than 445,000
and less than 455,000 according to the latest federal decennial census, one of
which shall be located in the qualifying municipality in that county with the
highest annual average number of unemployed persons and the highest average
annual unemployment rate for the 1992 calendar year according to the estimate
by the State Department of Labor and Workforce Development, and one of which
shall be located in the qualifying municipality in that county with the second
highest annual average number of unemployed persons and the second highest
average annual unemployment rate for the 1992 calendar year according to the
estimate by the State Department of Labor and Workforce Development;

���� c.���� One zone shall be
located in a county of the third class with a population greater than 84,000
and less than 92,000 according to the latest federal decennial census and shall
be located in the qualifying municipality in that county with the highest annual
average number of unemployed persons and the highest average annual
unemployment rate for the 1992 calendar year according to the estimate by the
State Department of Labor and Workforce Development;

���� d.��� One zone shall be
located within two noncontiguous qualifying municipalities but comprised of not
more than two noncontiguous areas each having a continuous border, if:

���� (1)�� both municipalities are
located in the same county which shall be a county of the fifth class with a
population greater than 500,000 and less than 555,000 according to the latest
federal decennial census;

���� (2)�� the two municipalities
submit a joint application and zone development plan; and

���� (3)�� each of the
municipalities has a population greater than 16,000 and less than 30,000 and a
population density of more than 5,000 persons per square mile, according to the
latest federal decennial census; and

���� e.���� One zone shall be
located within a municipality having a population greater than 38,000 and less
than 46,000 according to the latest federal decennial census if the
municipality is located within a county of the fifth class with a population
greater than 340,000 and less than 440,000 according to the latest federal
decennial census.

(cf: P.L.2004, c.75, s.2)

���� 4.��� Section 3 of P.L.2001,
c.347 (C.52:27H-66.2) is amended to read as follows:

���� 3.��� The authority shall
designate a classification known as a "UEZ-impacted business
district" for a municipality which can demonstrate to the authority that
its business district is economically distressed and is being negatively
impacted by the presence of two or more adjacent enterprise zones in which
[
50% less
]

the
sales
tax is collected
[
pursuant
to
]

in
accordance with
section
[
21
of P.L. 1983, c. 303 (C.52:27H-80)
]

9 of P.L.��� , c.��� (C. �������) (pending before the Legislature as this
bill)
.

(cf: P.L.2001, c.347, s.3)

���� 5.��� Section 5 of P.L.2001,
c.347 (C.52:27H-66.4) is amended to read as follows:

���� 5.��� a. A qualified business
within a UEZ-impacted business district authorized pursuant to section 3 of
P.L.2001, c.347 (C.52:27H-66.2) shall be entitled to an exemption to the
extent
[
of
50%
]

provided
in section 9 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill)
from the tax imposed under the "Sales and Use Tax
Act," P.L.1966, c.30 (C.54:32B-1 et seq.) in accordance with
[
section 21 of
the "New Jersey Urban Enterprise Zones Act," P.L.1983,
c.303 (C.52:27H-80)
]
,

to the same extent as that granted to qualified businesses in the adjacent
enterprise zones
,
provided that the qualified business applies to the
Director of the Division of Taxation in the Department of the Treasury for
certification pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80), meets
the eligibility criteria of section 27 of P.L.1983, c.303 (C.52:27H-86), and
satisfies the annual certification requirements of section 28 of P.L.1983,
c.303 (C.52:27H-87).

���� b.��� The reduced rate
revenues authorized by
[
this
section
]

section 9 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill)
and received from the taxation of retail sales made by qualified
businesses in the UEZ-impacted business district shall be deposited in the
General Fund and not allocated in accordance with section
[
21 of the
"New Jersey Urban Enterprise Zones Act," P.L.1983, c.303
(C.52:27H-80)
]

9 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this
bill)
, to the enterprise zone assistance fund.

���� c.���� Other than the
reduction in sales tax rate provided to qualified businesses pursuant to
[
this section
]

section 9 of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill)
,

[
no
]
tax credits,
incentives, programs
,
or other benefits of the "New Jersey Urban
Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.), shall
not

be available to businesses in the district as a result of a UEZ-impacted
business district designation.

(cf: P.L.2001, c.347, s.5)

���� 6.��� Section 11 of P.L.2001,
c.347 (C.52:27H-66.6) is amended to read as follows:

���� 11.� a.��� Notwithstanding the
provisions of any law, rule, regulation or order to the contrary, the
designation of an enterprise zone by the authority pursuant to P.L.1983, c.303
[
(C.52:27H-60
et seq.)
]

(C.52:27H-60 et al.)
, which is located in a municipality in which the
annual average of unemployed persons is equal to or greater than 2,000, or the
municipal average annual unemployment rate exceeds the State average annual
unemployment rate, or an enterprise zone which is located in a municipality
contiguous to a municipality in which an enterprise zone is designated pursuant
to P.L.1983, c.303
[
(C.52:27H-60
et seq.)
]

(C.52:27H-60 et al.)
and in which the annual average of unemployed
persons is equal to or greater than 2,000 or the municipal average annual
unemployment rate exceeds the State average annual unemployment rate, shall,
following the expiration of the third five-year period during which the State
shall have collected reduced rate revenues within the zone as provided in
subsection c. of section 21 of P.L.1983, c.303 (C.52:27H-80), be extended
by the authority, on a one-time basis, for a period of 16 years, within 90 days
after the effective date of P.L.2001, c.347 (C.52:27H-66.2 et al.), or within
90 days after the expiration of that third five-year period, whichever is
later.

���� b.��� During the 90-day period
provided for in subsection a. of this section, the authority shall notify all
qualified businesses in the enterprise zone that the benefits authorized by
sections 16 through 20 of P.L.1983, c.303 (C.52:27H-75 through C.52:27H-79)
shall be extended to qualified businesses in the enterprise zone commencing
with the designation of the extended enterprise zone and continuing as long as
a zone retains its designation as an extended enterprise zone.

���� c.����
[
Notwithstanding
any other provisions of any law, rule or regulation to the contrary, 90 days
after the expiration of the period provided for in subsection c. of section 21
of P.L.1983, c.303 (C.52:27H-80), except as provided in subsection b. of
section 6 of P.L.1996, c.124 (C.13:1E-116.6) and, and after first depositing 10
percent of the gross amount of all revenues received from the taxation of
retail sales made by certified vendors from business locations in an extended
enterprise zone designated pursuant to subsection a. of this section, to which
this exemption shall apply into the account created in the name of the
authority in the enterprise zone assistance fund pursuant to section 29 of
P.L.1983, c.303 (C.52:27H-88), the remaining 90 percent shall be deposited
immediately upon collection by the Department of the Treasury, as follows:

���� (1)�� In the first five-year
period
,
during which the State shall have collected reduced rate
revenues within the extended enterprise zone, all such revenues shall be
deposited in the enterprise zone assistance fund created pursuant to section 29
of P.L.1983, c.303 (C.52:27H-88);

���� (2)�� In the second five-year
period during which the State shall have collected reduced rate revenues within
the extended enterprise zone, 66 2/3% of all those revenues shall be deposited
in the enterprise zone assistance fund, and 33 1/3% shall be deposited in the
General Fund;

���� (3)�� In the third five-year
period during which the State shall have collected reduced rate revenues within
the extended enterprise zone, 33 1/3% of all those revenues shall be deposited
in the enterprise zone assistance fund, and 66 2/3% shall be deposited in the
General Fund;

���� (4)�� In the final year during
which the State shall have collected reduced rate revenues within the extended
enterprise zone, but not to exceed the life of the enterprise zone, all those
revenues shall be deposited in the General Fund.

���� The revenues required to be
deposited in the enterprise zone assistance fund under this section shall be
used for the purposes of that fund and for the uses prescribed in section 29 of
P.L.1983, c.303 (C.52:27H-88), subject to annual appropriations being made for
those purposes and uses.
]

(Deleted by amendment, P.L.��� , c.��� ) (pending before the Legislature as
this bill)

���� d.���
[
The
designation as an extended enterprise zone pursuant to this section shall
terminate if the authority determines that the municipality in which the zone
is located fails to meet the criteria of subsection a. of this section for
three consecutive years.� Any enterprise zone which loses its designation as an
extended enterprise zone pursuant to this subsection shall be eligible to
re-apply to the authority for designation as an extended enterprise zone
pursuant to the provisions of P.L.1983, c.303 (C.52:27H-60 et seq.).� If the
authority approves its application, an urban enterprise zone designation may be
extended to the applicant in accordance with the schedules set forth in
P.L.1983, c.303 (C.52:27H-60 et seq.), beginning at the point where the enterprise
zone was located on such schedules on the effective date of P.L.2001, c.347
(C.52:27H-66.2 et al.).
]

(Deleted by amendment, P.L.��� , c.��� ) (pending before the Legislature as
this bill)

(cf: P.L.2001, c.347, s.11)

���� 7.��� Section 21 of P.L.1983,
c.303 (C.52:27H-80) is amended to read as follows:

���� 21.� Receipts of retail sales,
except retail sales of motor vehicles, of alcoholic beverages as defined in the
"Alcoholic Beverage Tax Law," R.S.54:41-1 et seq., of cigarettes as
defined in the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et
seq.), of manufacturing machinery, equipment or apparatus, and of energy, made
by a certified seller from a place of business owned or leased and regularly
operated by the seller for the purpose of making retail sales, and located in a
designated enterprise zone established pursuant to the "New Jersey Urban
Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et al.) , or a
UEZ-impacted business district established pursuant to section 3 of P.L.2001,
c.347 (C.52:27H-66.2), are exempt to the extent
[
of 50%
]

provided in section 9 of P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill) and section
5 of P.L.2001, c.347 (C.52:27H-66.4), as appropriate, from the percentage

of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30
(C.54:32B-1 et seq.).

���� Any seller, which is a
qualified business having a place of business located in a designated
enterprise zone or in a designated UEZ-impacted business district, may apply to
the Director of the Division of Taxation in the Department of the Treasury for
certification pursuant to this section.� The director shall certify a seller if
the director shall find that the seller owns or leases and regularly operates a
place of business located in the designated enterprise zone or in the
designated UEZ-impacted business district for the purpose of making retail
sales, that items are regularly exhibited and offered for retail sale at that
location, and that the place of business is not utilized primarily for the
purpose of catalogue or mail order sales.� The certification under this section
shall remain in effect during the time the business retains its status as a
qualified business meeting the eligibility criteria of section 27 of P.L.1983,
c.303 (C.52:27H-86).� However, the director may
,
at any time
,

revoke a certification granted pursuant to this section if the director shall
determine that the seller no longer complies with the provisions of this
section.

���� Notwithstanding the provisions
of
[
this
act
]

P.L.1983,
c.303 (C.52:27H-60 et al.)
to the contrary, except as may otherwise be
provided by section 7 of P.L.1983, c.303 (C.52:27H-66), the authority may, in
its discretion, determine if the provisions of this section shall apply to any
enterprise zone designated after the effective date of P.L.1985, c.142
(C.52:27H-66 et al.); provided, however, that the authority may make
[
such a
]

this

determination only where the authority finds that the award of an exemption of
[
50 percent
]

a
percentage
of the tax imposed under the "Sales and Use Tax Act,"
P.L.1966, c.30 (C.54:32B-1 et seq.)
in accordance with section 9 of P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill)
will not
have any adverse economic impact upon any other urban enterprise zone.

����
[
Notwithstanding any other
provisions of law to the contrary, except as provided in subsection b. of
section 6 of P.L.1996, c.124 (C.13:1E-116.6), after first depositing 10
percent of the gross amount of all revenues received from the taxation of retail
sales made by certified sellers from business locations in designated
enterprise zones to which this exemption shall apply into the account created
in the name of the authority in the enterprise zone assistance fund pursuant to
section 29 of P.L.1983, c.303 (C.52:27H-88), the remaining 90 percent
shall be deposited immediately upon collection by the Department of the
Treasury, as follows:
]

���� a.����
[
In the first
five-year period during which the State shall have collected reduced rate
revenues within an enterprise zone, all such revenues shall be deposited in the
enterprise zone assistance fund created pursuant to section 29 of P.L.1983,
c.303 (C.52:27H-88);
]

(Deleted by amendment, P.L.��� , c.��� ) (pending before the Legislature as
this bill)

���� b.���
[
In the second
five-year period during which the State shall have collected reduced rate
revenues within an enterprise zone, 66 2/3% of all those revenues shall be
deposited in the enterprise zone assistance fund, and 33 1/3% shall be
deposited in the General Fund;
]

(Deleted by amendment, P.L.��� , c.��� ) (pending before the Legislature as
this bill)

���� c.����
[
In the third
five-year period during which the State shall have collected reduced rate
revenues within an enterprise zone, 33 1/3% of all those revenues shall be
deposited in the enterprise zone assistance fund, and 66 2/3% shall be
deposited in the General Fund;
]

(Deleted by amendment, P.L.��� , c.��� ) (pending before the Legislature as
this bill)

���� d.���
[
In the final
five-year period during which the State shall have collected reduced rate
revenues within an enterprise zone, but not to exceed the life of the
enterprise zone, all those revenues shall be deposited in the General Fund.
]

(Deleted
by amendment, P.L.��� , c.��� ) (pending before the Legislature as this bill)

����
[
Commencing on the effective date
of P.L.1993, c.144, all revenues in any enterprise zone to which the provisions
of this section have been extended prior to the enactment of P.L.1993, c.144
shall be deposited into the enterprise zone assistance fund until there shall
have been deposited all revenues into that fund for a total of five full years,
as set forth in subsection a. of this section.� The State Treasurer then shall
proceed to deposit funds into the enterprise zone assistance fund according to
the schedule set forth in subsections b. through d. of this section, beginning
at the point where the enterprise zone was located on that schedule on the
effective date of P.L.1993, c.144.� No enterprise zone shall receive the
deposit benefit granted by any one subsection of this section for more than
five cumulative years.

���� The revenues required to be
deposited in the enterprise zone assistance fund under this section shall be
used for the purposes of that fund and for the uses prescribed in section 29 of
P.L.1983, c.303 (C.52:27H-88), subject to annual appropriations being made for
those purposes and uses.
]

(cf: P.L.2011, c.49, s.15)

���� 8.��� Section 29 of P.L.1983,
c.303 (C.52:27H-88) is amended to read as follows:

���� 29.� a.�
(1)
� There is
created an enterprise zone assistance fund to be held by the State Treasurer,
which shall be the repository for all moneys required to be deposited therein
[
under
]

in
accordance with
section
[
21
of P.L.1983, c.303 (C.52:27H-80)
]

9 of P.L.��� , c.��� (C. ) (pending
before the Legislature as this bill)
or moneys appropriated annually to the

assistance
fund.� All moneys deposited in the
assistance
fund
shall be held and disbursed in the amounts necessary to fulfill the purposes of
this section and subject to the requirements hereinafter prescribed.� The State
Treasurer may invest and reinvest any moneys in the
assistance
fund, or
any portion thereof, in legal obligations of the United States or of the State
or of any political subdivision thereof.� Any income from, interest on, or
increment to moneys so invested or reinvested shall be included in the
assistance

fund.

����
(2)
�� The State
Treasurer shall maintain separate accounts for each enterprise zone designated
under P.L.1983, c.303 (C.52:27H-60 et al.), and one in the authority's name for
the administration of the Urban Enterprise Zone program.� The State Treasurer
shall credit to each account an amount of the moneys deposited in the
assistance

fund equal to the amount of revenues collected from the taxation of retail
sales made in the zone and appropriated to the enterprise zone assistance fund,
or that amount of moneys appropriated to the
assistance
fund and
required to be credited to the enterprise zone account of the qualifying
municipality
[
pursuant
to
]

in
accordance with
section
[
21
of P.L.1983, c.303 (C.52:27H-80)
]

9 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this
bill)
.

����
(3)
�� The State
Treasurer shall promulgate the rules and regulations necessary to govern the
administration of the
assistance
fund for the purposes of this section,
which shall include, but not be limited to, regulations requiring the
establishment of separate bank accounts for funds credited to the enterprise
zone account of each
qualifying
municipality from the enterprise zone
assistance fund, commonly known as "first generation funds," and
funds generated from the repayments of loans to individuals and businesses from
the enterprise zone account of each
qualifying
municipality and the
proceeds from the sale of properties and equipment acquired through the
enterprise zone program, commonly known as "second generation funds,"
and the review, compilation, and monitoring of second generation fund quarterly
reports submitted by each enterprise zone.

����
(4)
�� Any individual,
including an individual who is not directly employed by a
qualifying

municipality, with the authority to administer, allocate or approve the use of
enterprise

zone assistance funds is subject to the "Local Government Ethics
Law," P.L.1991, c.29 (C.40A:9-22.1 et seq.), unless the individual is a
State employee or a special State officer.

���� b.��� The enterprise zone
assistance fund shall be used for the purpose of assisting qualifying
municipalities in which enterprise zones are designated in undertaking public
improvements, economic development projects
,
and in upgrading eligible
municipal services in designated enterprise zones
in accordance with section
9 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill)
.

���� c.���� The governing body of a
qualifying municipality in which an enterprise zone is designated and the zone
development corporation created or designated by the
qualifying

municipality for that enterprise zone may, by resolution jointly adopted after
public hearing, propose to undertake a project for the public improvement of
the enterprise zone or to increase eligible municipal services in the
enterprise zone, and to fund that project or increase in eligible municipal
services from moneys deposited in the enterprise zone assistance fund and
credited to the account maintained by the State Treasurer for the enterprise
zone.

���� The proposal so adopted shall
set forth a plan for the project or for the increase in eligible municipal
services and shall include:

���� (1)�� A description of the
proposed project or of the municipal services to be increased;

���� (2)�� An estimate of the total
project costs, or of the total costs of increasing the municipal services, and
an estimate of the amounts of funding necessary annually from the enterprise
zone account;

���� (3)�� A statement of any other
revenue sources to be used to finance the project or to fund the increase in
eligible municipal services;

���� (4)�� A statement of the time
necessary to complete the project, or of the time during which the increased
municipal services are to be maintained;

���� (5)�� A statement of the
manner in which the proposed project or increase in municipal services furthers
the municipality's policy and intentions for addressing the economic and social
conditions existing in the area of the enterprise zone as set forth in the zone
development plan approved by the authority; and

���� (6)�� A description of the
financial and programmatic controls and reporting mechanisms to be used to
guarantee that the funds will be spent in accordance with the plan and that the
project or increased municipal service will accomplish its purpose.

���� As used in this section,
"project" means an activity funded by the
enterprise
zone
assistance fund through the
[
qualified
]

qualifying

municipality and implemented by the zone development corporation, including the
purchasing, leasing, condemning, or otherwise acquiring of land or other
property, or an interest therein, in the enterprise zone or as necessary for a
right-of-way or other easement to or from the enterprise zone; the relocating
and moving of persons or businesses displaced by the acquisition of land or
property; the rehabilitation and redevelopment of land or property, including
demolition, clearance, removal, relocation, renovation, alteration,
construction, reconstruction, installation
,
or repair of land or a
building, street, highway, alley, utility, service
,
or other structure
or improvement which will lead to increased economic activity within the
enterprise

zone; the purchase and installation of closed circuit television surveillance
systems or other related equipment and those expenses associated with homeland
security and domestic preparedness; the acquisition, construction,
reconstruction, rehabilitation, or installation of public facilities and
improvements, except buildings and facilities for the general conduct of
government and schools; the establishment of revolving loan or grant programs
for qualified businesses in the
enterprise
zone to encourage private
investment and job creation, matching grant programs for the establishment or
operation of pedestrian malls, special improvement districts and tax increment
districts, or other appropriate entity; marketing, advertising
,
and
special event activities that will lead to increased economic activity or
encourage private investment and job creation in the
enterprise
zone,
but not including the expenditures therefor which are required to be reported
pursuant to "The New Jersey Campaign Contributions and Expenditures
Reporting Act," P.L.1973, c.83 (C.19:44A-1 et al.) and the costs
associated therewith including the costs of an administrative appraisal,
economic and environmental analyses, environmental remediation, engineering,
planning, design, architectural, surveying
,
or other professional or
managerial services.

���� As used in this section,
"eligible municipal services" means the hiring of additional
[
policemen or
firemen
]

police officers or firefighters
assigned duties in the enterprise zone,
or the purchasing or leasing of additional police or fire vehicles, equipment
,

or apparatus to be used for the provision of augmented or upgraded public
safety services in the enterprise zone and its immediate vicinities.

���� d.��� Upon adoption by the
governing body of the qualifying municipality and by the zone development
corporation, the proposal shall be sent to the authority for its evaluation and
approval.� The authority shall approve the proposal if it shall find:

���� (1)�� In the case of a
project, that the proposed project furthers the policy and intentions of the
zone development plan approved by the authority, and that the estimated annual
payments for the project from the enterprise zone account to which the proposal
pertains are not likely to result in a deficit in that account;

���� (2)�� In the case of an
increase in eligible municipal services, that the proposal furthers the policy
and intentions of the zone development plan approved by the authority; that the
qualifying municipality has furnished satisfactory assurances that the additional

[
policemen
or firemen
]

police officers or firefighters
to be hired, or the additional vehicles,
equipment
,
or apparatus to be purchased or leased, shall be used to
augment or upgrade public safety in the enterprise zone, and shall not be used
in other areas of the
qualifying
municipality; that the qualifying
municipality shall annually appropriate for the increased eligible municipal
services an amount equal to
[
20%
]

20 percent

of the amount of annual payments for the eligible municipal services from the
enterprise zone account and shall not request for the increased eligible
municipal services an amount equal to more than
[
35%
]

35 percent
of the amount
of annual payments into the enterprise zone account, unless the municipality
and the authority have entered into an agreement or agreements to the contrary
prior to July 1, 1992; and that the estimated annual payments for the eligible
municipal services from the enterprise zone account to which the proposal
pertains are not likely to result in a deficit in that account.

���� e.���� If the authority shall
approve the proposal, it shall annually, upon its receipt of a written
statement from the governing body of the qualifying municipality and the zone
development corporation, certify to the State Treasurer the amount to be paid
in that year from the enterprise zone account in the enterprise zone assistance
fund with respect to each project or increase in eligible municipal services
approved.� The authority may at any time revoke its approval of a project or an
increase in eligible municipal services if it finds that the annual payments
made from the enterprise zone assistance fund are not being used as required by
this section.

���� f.���� Upon certification by
the authority of the annual amount to be paid to a qualifying
enterprise

zone with respect to any project or increase in eligible municipal services,
the State Treasurer shall pay in each year to the qualifying municipality from
the amounts deposited in the enterprise zone assistance fund the amount so
certified, within the limits of the amounts credited to the enterprise zone
account of the qualifying municipality.

���� g.��� An amount not to exceed
one-third of the amount deposited in the account created in the name of the
authority in the enterprise zone assistance fund
, pursuant to subsection a.
of this section,
shall be used by the authority for the coordination and
administration of the program throughout the State, including
,
but not
limited to
,
costs for personnel, operating expenses
,
and
marketing.� The balance of the remaining amount shall be distributed to
qualifying municipalities in proportion to each municipality's contribution to
the enterprise zone assistance fund for the coordination and administration of
the program within the
qualifying
municipality, including but not
limited to costs for personnel, operating expenses
,
and marketing.

(cf: P.L.2009, c.25, s.1)

���� 9.��� (New section)� a.�
During Fiscal Year 2016, the receipts of all retail sales of goods not exempted
from the provisions of section 21 of P.L.1983, c.303 (C.52:27H-80) from a
seller who is certified by the director pursuant to that section, shall be
taxed at the rate of four percent and collected in a manner consistent with the
"Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).� The revenues
derived from the sales tax collected from those retail sales shall be divided as
follows: (1) the General Fund of the State of New Jersey shall receive 87.5 percent;
and (2) the remaining 12.5 percent shall be deposited into the separate
accounts maintained within the enterprise zone assistance fund for the
applicable qualifying municipality�s enterprise zone trust fund account in a
manner consistent with the purposes and administration of the enterprise zone
assistance fund.� In a manner consistent with the provisions of subsection c.
of section 29 of P.L.1983, c.303 (C.52:27H-88), during Fiscal Year 2016,
no less than 10 percent of the monies available in a qualifying municipality�s enterprise
zone trust fund account shall be appropriated to finance a project undertaken
for the public improvement of the enterprise zone.

���� b.��� During Fiscal Year 2017,
the receipts of all retail sales of goods not exempted from the provisions of
section 21 of P.L.1983, c.303 (C.52:27H-80) from a seller who is certified by
the director pursuant to that section, shall be taxed at the rate of 4.5
percent and collected in a manner consistent with the "Sales and Use Tax
Act," P.L.1966, c.30 (C.54:32B-1 et seq.).� The revenues derived from the sales
tax collected from those retail sales shall be divided as follows: (1) the
General Fund of the State of New Jersey shall receive 77.78 percent; and (2)
the remaining 22.22 percent shall be deposited into the separate accounts
maintained within the enterprise zone assistance fund for the applicable qualifying
municipality�s enterprise zone trust fund account in a manner consistent with
the purposes and administration of the enterprise zone assistance fund.� In a
manner consistent with the provisions of subsection c. of section 29 of
P.L.1983, c.303 (C.52:27H-88), during Fiscal Year 2017, no less than 20 percent
of the monies available in a qualifying municipality�s enterprise zone trust
fund account shall be appropriated to finance a project undertaken for the
public improvement of the enterprise zone.

���� c.���� During Fiscal Year
2018, the receipts of all retail sales of goods not exempted from the
provisions of section 21 of P.L.1983, c.303 (C.52:27H-80) from a seller who is
certified by the director pursuant to that section, shall be taxed at the rate
of five percent and collected in a manner consistent with the "Sales and
Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).� The revenues derived
from the sales tax collected from those retail sales shall be divided as
follows: (1) the General Fund of the State of New Jersey shall receive 70
percent; and (2) the remaining 30 percent shall be deposited into the separate
accounts maintained within the enterprise zone assistance fund for the
applicable qualifying municipality�s enterprise zone trust fund account in a
manner consistent with the purposes and administration of the enterprise zone
assistance fund.� In a manner consistent with the provisions of subsection c.
of section 29 of P.L.1983, c.303 (C.52:27H-88), during Fiscal Year 2018, no
less than 30 percent of the monies available in a qualifying municipality�s enterprise
zone trust fund account shall be appropriated to finance a project undertaken
for the public improvement of the enterprise zone.

���� d.��� During Fiscal Year 2019,
the receipts of all retail sales of goods not exempted from the provisions of
section 21 of P.L.1983, c.303 (C.52:27H-80) from a seller who is certified by
the director pursuant to that section, shall be taxed at the rate of 5.5
percent and collected in a manner consistent with the "Sales and Use Tax
Act," P.L.1966, c.30 (C.54:32B-1 et seq.).� The revenues derived from the sales
tax collected from those retail sales shall be divided as follows: (1) the
General Fund of the State of New Jersey shall receive 63.64 percent; and (2)
the remaining 36.36 percent shall be deposited into the separate accounts
maintained within the enterprise zone assistance fund for the applicable qualifying
municipality�s enterprise zone trust fund account in a manner consistent with
the purposes and administration of the enterprise zone assistance fund.� In a
manner consistent with the provisions of subsection c. of section 29 of
P.L.1983, c.303 (C.52:27H-88), during Fiscal Year 2019 and thereafter, no less
than 40 percent of the monies available in a qualifying municipality�s enterprise
zone trust fund account shall be appropriated to finance a project undertaken
for the public improvement of the enterprise zone.

���� e.���� During Fiscal Year
2020, the receipts of all retail sales of goods not exempted from the
provisions of section 21 of P.L.1983, c.303 (C.52:27H-80) from a seller who is
certified by the director pursuant to that section, shall be taxed at the rate
of six percent and collected in a manner consistent with the "Sales and
Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).� The revenues derived
from the sales tax collected from those retail sales shall be divided as
follows: (1) the General Fund of the State of New Jersey shall receive 58.33 percent;
and (2) the remaining 41.67 percent shall be deposited into the separate
accounts maintained within the enterprise zone assistance fund for the
applicable qualifying municipality�s enterprise zone trust fund account in a
manner consistent with the purposes and administration of the enterprise zone
assistance fund.

���� f.���� During Fiscal Year
2021, the receipts of all retail sales of goods not exempted from the
provisions of section 21 of P.L.1983, c.303 (C.52:27H-80) from a seller who is
certified by the director pursuant to that section, shall be taxed at the rate
of 6.5 percent and collected in a manner consistent with the "Sales and
Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).� The revenues derived
from the sales tax collected from those retail sales shall be divided as
follows: (1) the General Fund of the State of New Jersey shall receive 53.35 percent;
and (2) the remaining 46.65 percent shall be deposited into the separate
accounts maintained within the enterprise zone assistance fund for the
applicable qualifying municipality�s enterprise zone trust fund account in a
manner consistent with the purposes and administration of the enterprise zone
assistance fund.

���� g.��� During Fiscal Year 2022,
the receipts of all retail sales of goods not exempted from the provisions of
section 21 of P.L.1983, c.303 (C.52:27H-80) from a seller who is certified by
the director pursuant to that section, shall be taxed at the rate of seven
percent and collected in a manner consistent with the "Sales and Use Tax
Act," P.L.1966, c.30 (C.54:32B-1 et seq.).� The revenues derived from the sales
tax collected from those retail sales shall be divided as follows: (1) the
General Fund of the State of New Jersey shall receive 50 percent; and (2) the
remaining 50 percent shall be deposited into the separate accounts maintained
within the enterprise zone assistance fund for the applicable qualifying
municipality�s enterprise zone trust fund account in a manner consistent with
the purposes and administration of the enterprise zone assistance fund.

���� h.��� During Fiscal Year 2023
and thereafter, the receipts of all retail sales of goods not exempted from the
provisions of section 21 of P.L.1983, c.303 (C.52:27H-80) from a seller who is
certified by the director as pursuant to that section, shall be taxed at the
rate of seven percent and collected in a manner consistent with the "Sales
and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) and all of the revenues
derived from the sales tax collected from those retail sales shall be deposited
in the General Fund.

���� 10.� Section 5 of P.L.2007,
c.30 (C.34:1B-194) is amended to read as follows:

���� 5.��� The governing body of a
municipality that establishes a sports and entertainment district may, as part
of the ordinance establishing the district: impose one or more of the taxes
enumerated in subsection a. of this section; dedicate some or all of those taxes;
and dedicate some or all of the taxes enumerated in subsection b. of this
section solely for the purposes of financing the project costs of a sports and
entertainment facility for the life of the project, as appropriate, except that
none of the taxes enumerated in subsection a. or b. of this section shall be
imposed or dedicated for a period of more than 30 years.

���� a.���� The municipality may,
by ordinance, impose any or all of the following:

���� (1)�� a tax at the rate of
[
2%
]

two
percent
on the receipts from every sale within the district of� tangible
personal property subject to taxation pursuant to subsection (a) of section 3
of P.L.1966, c.30 (C.54:32B-3);

���� (2)�� a tax at the rate of
[
2%
]

two
percent
on the receipts from every sale within the district of food and
drink subject to taxation pursuant to subsection (c) of section 3 of P.L.1966,
c.30 (C.54:32B-3);

���� (3)�� a tax at the rate of
[
2%
]

two
percent
on charges of rent for every occupancy of a room or rooms in a
hotel located within the district and subject to taxation pursuant to
subsection (d) of section 3 of P.L.1966, c.30 (C.54:32B-3); or

���� (4)�� a tax at the rate of
[
2%
]

two
percent
on the admission charge to a place of amusement within the district
and subject to taxation pursuant to subsection (e) of section 3 of P.L.1966,
c.30 (C.54:32B-3).

���� b.��� The municipality may
dedicate, by ordinance, any hotel and motel occupancy tax revenues collected
within the district that the municipality is authorized to impose pursuant to
section 3 of P.L.2003, c.114 (C.40:48F-1) and, at the discretion of the municipality,
an additional charge of
[
2%
]

two
percent
.

���� c.���� A tax imposed under
subsection a. of this section shall be in addition to any other tax or fee
imposed pursuant to statute or local ordinance or resolution by any
governmental entity upon the same transaction.

���� d.��� A copy of an ordinance
adopted pursuant to section 4 of P.L.2007, c.30 (C.34:1B-193) shall be
transmitted upon adoption or amendment thereof to the State Treasurer.� An
ordinance so adopted or any amendment thereto shall provide that the tax
provisions of the ordinance or any amendment to the tax provisions shall take
effect on the first day of the first full month occurring 90 days after the
date of transmittal to the State Treasurer.

���� e.���� A municipality that
creates a district pursuant to section 4 of P.L.2007, c.30 (C.34:1B-193), which
overlaps, in whole or in part, with an urban enterprise zone in which the
receipts of certain sales are exempt to the extent
[
of 50%
]

provided in section 9 of P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill)
of the
tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1
et seq.),
[
pursuant
to section 21 of P.L.1983, c.303 (C.52:27H-80),
]
shall continue to administer
those sales tax revenues collected within the designated urban enterprise zone
as otherwise provided pursuant to P.L.1983, c.303
[
(C.52:27H-60 et seq.)
]

(C.52:27H-60
et al.)
.

(cf: P.L.2007, c.30, s.5)

���� 11.� Section 4 of P.L.1995, c.173,
s.4 (C.40A:12A-53) is amended to read as follows:

���� 4.��� a. A municipality that
has created a district pursuant to section 3 of P.L.1995, c.173 (C.40A:12A-52),
in which there is an area designated as an urban enterprise zone in which the
receipts of certain sales are exempt to the extent
[
of 50%
]

provided in section 9 of P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill)
of the
tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30
(C.54:32B-1 et seq.),
[
pursuant
to section 21 of P.L.1983, c.303 (C.52:27H-80),
]
may for the purpose of
increasing public revenue adopt an ordinance to levy and collect, within the
district, a franchise assessment not to exceed three percent of gross receipts
and to devote the proceeds from those assessments to municipal purposes as
provided in this section.

���� b.��� The rate of the
franchise assessment shall be uniform throughout the district.� The franchise
assessment shall apply only within the territorial limits of the district and
shall be in addition to any other assessments, taxes
,
and excises.

���� c.���� The ordinance shall be
a valid and binding ordinance of the municipality.� The ordinance shall
continue in force and effect until repealed by the governing body.� The
municipality may also provide and covenant by ordinance that the ordinance
authorizing the franchise assessment will not be amended so as to repeal or
reduce the franchise assessment while bonds issued pursuant to P.L.1995, c.173
(C.40A:12A-50 et seq.) and
[
this
amendatory and supplementary act,
]

P.L.1996, c.73 (C.40A:12A-50a et al.) are outstanding, unless the resolution
authorizing the bonds shall provide otherwise.�
[
Such
]

The
covenant shall
constitute a valid and legally binding contract between the municipality and
bondholders.

���� d.���
[
No
]

A

franchise assessment shall
not
be imposed on gross receipts which the
municipality or the State is prohibited from taxing under New Jersey law, or
the Constitution and laws of the United States of America.

���� e.���� Upon adoption, the
municipal clerk shall immediately transmit a copy of the ordinance to the
Director of the Division of Local Government Services in the Department of
Community Affairs and to the Director of the Division of Taxation in the
Department of the Treasury.� Every ordinance levying a franchise assessment
pursuant to this section shall provide for reporting assessments due and for
the collection thereof, and all franchise assessments pursuant to
[
such an
]

that

ordinance shall be remitted to the chief financial officer of the
municipality.� An ordinance levying a franchise assessment shall take effect
only on the first day of any month in any year.� The ordinance shall provide
for the allocation and distribution of the proceeds of the franchise
assessments collected; provided, however, that only
[
such
]
sums as are retained by the
municipality pursuant to the ordinance shall be included in the general funds
of the municipality and all other franchise assessment proceeds shall be held
in trust for the payment or reimbursement of costs or obligations incurred for
the purposes of the district.

���� f.���� The ordinance shall set
forth the person or persons subject to the franchise assessment payment and
collection procedures, and any other matters deemed relevant by the
municipality with the municipality having discretion as to the mechanism to be
utilized.� The ordinance shall also contain findings that the imposition of the
franchise assessment is necessary because of the substantial risks undertaken
to develop a landfill reclamation improvement district, and to offset loss of
revenues by the municipality because of its assignment of payments in lieu of
taxes.

���� g.��� The ordinance shall
provide for the collection of the franchise assessment by an officer of the
municipality who shall be designated in the ordinance; shall provide methods
for enforcement; and may provide penalties for the violation of any of the
provisions of the ordinance.

���� h.��� All revenues collected
under the ordinance and retained by the municipality pursuant to this section
shall be deposited in the general fund of the municipality and may be used for
general municipal purposes, including the payment of salaries, construction,
reconstruction, maintenance
,
and repair of municipal buildings,
installations and properties
,
and for
[
such
]
other
purposes as may be provided by existing ordinances or ordinances hereafter
enacted for general municipal purposes.

(cf: P.L.1996, c.73, s.5)

���� 12.� This act shall take
effect immediately, but shall remain inoperative until July 1, 2015.

STATEMENT

���� This bill increases financial
assistance to urban enterprise zones (UEZs) over a seven-year period, by
dedicating from the beginning of Fiscal Year 2016 to the end of Fiscal Year
2022, one half of one penny for every dollar of sales tax revenues, as increased
annually, in the sales tax of goods and services in UEZs subject to the tax, to
the accounts held in the Urban Enterprise Zone Assistance Fund (UEZ Assistance
Fund) in the name of the respective municipalities having UEZs.� The bill ends
all UEZ Assistance fund appropriations to UEZs at the end of the seven-year
period and thereafter dedicates all sales tax collection revenues in UEZs to
the General Fund.� In doing so, the bill deletes the schedule of financial
assistance to UEZs and municipalities having UEZs as provided in current law
but continues the 20-year original designation period as well as the one-time
16-year extension period for qualified UEZs.� The bill increases the sales tax
in UEZs from 3.5 percent to seven percent over the seven-year period to provide
funding to UEZs from the UEZ Assistance Fund.

���� The bill requires UEZs to
contribute an increasing percentage from at least 10 percent in Fiscal Year
2016, to at least 40 percent in Fiscal Year 2020 and thereafter, of UEZ funds
to be spent on eligible capital projects and public improvements in UEZs and
grant and loan programs for qualified UEZ businesses.

���� Further, under the same
designation period as for UEZs, the bill increases the amount of the reduced
sales tax collected by qualified businesses located in UEZ-impacted business
districts.