"Atlantic City Urban Enterprise Zone and Property Tax Relief Act"; creates urban enterprise zone in Atlantic City for 10 years.

A4787

ASSEMBLY, No. 4787

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 19, 2026

Sponsored by:

Assemblyman� DONALD A. GUARDIAN

District 2 (Atlantic)

SYNOPSIS

���� "Atlantic City Urban Enterprise Zone and
Property Tax Relief Act"; creates urban enterprise zone in Atlantic City
for 10 years.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning urban enterprise zones and designated as the Atlantic City Urban
Enterprise Zone and Property Tax Relief Act, amending P.L.1983, c.303 and
P.L.1995, c.382, and supplementing Title 52 of the Revised Statutes.

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

���� a.���� "Enterprise
zone" or "zone" means an urban enterprise zone designated by the
authority pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.);

���� b.��� "Authority" or
"UEZ Authority" means the New Jersey Urban Enterprise Zone Authority
created by P.L.1983, c.303 (C.52:27H-60 et seq.);

���� 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 percent of
its full-time employees employed at a business location in an eligible block
group as defined under section 12 of P.L.2021, c.197 (C.52:27H-99), and which
employees meet 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
.� A casino shall not
be deemed a qualified business, but a business operating on the property of a
casino not owned by a casino shall be deemed a qualified business if the
business otherwise meets the criteria provided in P.L.1983, c.303 (C.52:27H-60
et seq.)
;

���� d.��� "Qualifying
municipality" means any municipality that was previously designated as a
qualifying municipality prior to the effective date of
[
P
]
P.L.2021,
c.197
. In addition to those municipalities that qualify pursuant to the
criteria set forth above, the following municipalities shall also be deemed to
be qualifying municipalities pursuant to the following criteria: (1) that
municipality accorded priority designation pursuant to subsection e. of section
7 of P.L.1983, c.303 (C.52:27H-66); (2) those municipalities set forth in
paragraph (7), paragraph (8), and paragraph (9) of subsection b. of section 3
of P.L.1995, c.382 (C.52:27H-66.1); (3) 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);
and (4) the municipality in which the additional enterprise zone is to be
designated pursuant to criteria according priority consideration for
designation of the zone pursuant to paragraph (10) of subsection b. of section
3 of P.L.1995, c.382 (C.52:27H-66.1)

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

���� 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 percent less sales tax is collected pursuant to section 21 of
P.L.1983, c.303 (C.52:27H-80);

���� k.��� "Block group"
means statistical divisions of census tracts, that are generally defined by the
United States Census Bureau to contain between 600 and 3,000 people and are
used to present data and control block numbering;

���� l.���� "Municipal
Revitalization Index" means the index developed, maintained, and updated
from time to time, by the Department of Community Affairs ranking New Jersey's
municipalities according to separate indicators that measure diverse aspects of
social, economic, physical, and fiscal conditions in each locality;

���� m.�� "Qualified
assistance fund expense" means any reasonable expense related to:

���� (1)�� a construction project
improving, altering, or repairing the real property of a qualified business
located in an enterprise zone;

���� (2)�� full or part time
economic and community development positions in the municipality, other
governmental, or not-for-profit organization, or marketing;

���� (3)�� loans, grants, and
guarantees to businesses;

���� (4)�� payroll expenses,
personnel, services, and equipment purchases primarily for the provision of law
enforcement, fire protection, or emergency medical services within commercial
and transportation corridors located exclusively in an enterprise zone;

���� (5)�� planning and other
professional services related to economic and community development;

���� (6)�� cleaning and maintenance
of commercial and transportation corridors;

���� (7)�� the improvement of
public infrastructure in a commercial or transportation corridor and
transportation infrastructure located within an enterprise zone, including, but
not limited to, the payment of debt service related to the financing of a
transportation infrastructure project, and the pledge of funds credited to the
assistance fund toward the repayment of any loan issued by the State
Transportation Infrastructure Bank pursuant to section 34 of P.L.2016, c.56
(C.58:11B-10.4) or any government agency, for a transportation infrastructure
project, provided that up to 75 percent of any zone assistance funds may be
used to pay debt service related to the financing of the cost of a
transportation infrastructure project or pledged toward the repayment of any loan
for the cost of a transportation infrastructure project if such use is detailed
in that municipality's zone development plan certified by the UEZ Authority;

���� (8)�� the improvement of
public infrastructure related to a commercial, industrial, mixed use, or
multi-family residential property;

���� (9)�� employment and training
programs; or

���� (10) events meant to support
and draw activity into the enterprise zone, including fairs, festivals, and
concerts.

���� n.��� "UEZ
coordinator" means an individual designated by a qualified municipality or
zone development corporation as the individual in charge of the activities
related to the Urban Enterprise Zone program in that municipality;

���� o.��� "UZ-2
certification" means the UEZ Authority's certification of a qualified
business, pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80), allowing the
qualified business an exemption to the extent of 50 percent of the tax imposed
under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et
seq.), when the sales transaction physically occurs within an enterprise zone.�
The qualified business may deliver merchandise to the purchaser at a location
outside an enterprise zone provided the sales transaction was physically made
within the enterprise zone.� The regular tax rate shall be charged for mail
order, telephone, internet, and similar sales transactions delivered within the
State;

���� p.��� "UZ-4
certification" means the UEZ Authority's certification of a qualified
business, pursuant to section 8 of P.L.2021, c.197 (C.52:27H-79.1), allowing a
contractor of the qualified business to make tax-free purchases of materials,
supplies, and services for the exclusive use of erecting a structure or
building on, or substantially improving, altering, or repairing, the real
property of a qualified business located in an enterprise zone at the address
indicated on the qualified business's application for certification to the UEZ
Authority;

���� q.��� "UZ-5
certification" means the UEZ Authority's certification of a qualified
business, as defined under section 20 of P.L.1983, c.303 (C.52:27H-79),
allowing the qualified business to make tax-free purchases of office and
business equipment and supplies, furnishings, trade fixtures, repair, or
construction materials and all other tangible personal property (other than
motor vehicles and motor vehicle parts and supplies) for the exclusive use or
consumption on the premises of the qualified business within an enterprise zone
at an address indicated on the qualified business's application for
certification to the UEZ Authority.� The exemption may be used only for
personal property controlled by the qualified business.� This exemption shall
also apply to delivery charges and charges for services performed for a
qualified business at its zone location, including repair, janitorial, and
maintenance services;

���� r.���� "Economic Distress
Index" means a standardized score developed and maintained by the
Department of Community Affairs that equally incorporates the block group
unemployment rate and median household income according to the most recent
five-year estimate by the United States Census Bureau;

���� s.���� "Commercial
corridor" means the land area with frontage on a State, county, local, or
rail thoroughfare in an enterprise zone which is predominantly commercial or
industrial;

���� t.���� "Transportation
corridor" means a broad geographical band that follows a general
directional flow or connects major sources of trips. It may contain a number of
streets and highways and transit lines or routes;

���� u.��� "Improvement of
transportation infrastructure" means the undertaking of a capital project
for the construction, repair, upgrade, or maintenance of transportation
infrastructure;

���� v.��� "Transportation
infrastructure" includes, but is not limited to:

���� (1)�� all public highways,
roads, bridges, and streets in the State, whether maintained by the State or by
any county, municipality, or other political subdivision; and

���� (2)�� public transportation
facilities used in connection with public transportation service, such as
passenger stations, shelters, and terminals, automobile and bus parking
facilities, ramps, track connections, signal systems, power systems,
information and communication systems, roadbeds, transit lanes or
rights-of-way, equipment storage and servicing facilities, bridges, grade
crossings, rail cars, locomotives, motorbuses and other motor vehicles,
maintenance and garage facilities, revenue handling equipment, and any other
equipment, facility, or property useful or related to the provision of public
transportation service;

���� w.�� "Public
transportation service" means rail passenger service, motorbus regular
route service, paratransit service, motorbus charter service, and ferry
passenger service;

���� x.��� "Rail passenger
service" means and includes the operations of a railroad, subway, street,
traction, or electric railway for the purpose of carrying passengers in this
State or between points in this State and points in other states;

���� y.��� "Motorbus regular
route service" means and includes the operation of any motorbus or
motorbuses on streets, public highways, or other facilities over a fixed route
and between fixed termini on a regular schedule for the purpose of carrying
passengers for hire or otherwise in this State or between points in this State
and points in other states;

���� z.���� "Paratransit
services" means and includes any service, other than motorbus regular
route service and charter services, including, but not limited to, dial-a-ride,
non-regular route, jitney or community minibus, and shared-ride services such
as vanpools, limousines, or taxicabs which are regularly available to the
public.� Paratransit services shall not include limousine or taxicab service
reserved for the private and exclusive use of individual passengers;

���� aa.�� "Motorbus charter
service" means and includes subscription, tour, other special motorbus
services, school bus services, or charter services as set forth in section 7 of
P.L.1979, c.150 (C.27:25-7);
[
and
]

���� bb.� "Ferry passenger
service" means any service which involves the carriage of persons for
compensation or hire by waterborne craft in this State or between points in
this State and points in other states
;

����
cc.�� "Director"
means the Director of the Division of Taxation in the Department of the
Treasury;

����
dd.� "State
Treasurer" means the Treasurer of the State of New Jersey; and

����
ee.�� "Casino"
means a licensed casino or gambling house located in Atlantic City at which
casino gambling is conducted pursuant to the provisions of P.L.1977, c.110
(C.5:12-1 et seq.)
.

(cf: P.L.2024, c.80, s.1)

���� 2.��� 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, c.303 (C.52:27H-60 et seq.). No
more than
[
32
]

33

enterprise zones shall be in effect at any one time.� No more than one
enterprise zone shall be designated in any one municipality.� 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 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. Notwithstanding the provisions of P.L.1983, c.303 (C.52:27H-60 et seq.)
to the contrary, 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 percent 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.2018, c.19, s.1)

���� 3.��� Section 3 of P.L.1995,
c.382 (C.52:27H-66.1) is amended to read as follows:

���� 3.���
a.
The additional
seven zones authorized pursuant to P.L.1995, c.382 (C.52:27H-66.1 et al.), the
additional zone authorized pursuant to P.L.2003, c.285,
[
and
]
the additional zone designated pursuant to P.L.2004,
c.75,
and the additional zone designated pursuant to P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill)
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.1995, c.382 (C.52:27H-66.1 et al.)
[
or
]
,
P.L.2003,
c.285
, P.L.2004, c.75, or P.L.��� , c.�� (C.������� ) (pending before the
Legislature as this bill)
, as applicable, for those zones that fulfill the
criteria set forth in this section.� Notwithstanding the provisions of
P.L.1983, c.303 (C.52:27H-60 et seq.) to the contrary, the
[
nine
]

10

additional enterprise zones to be designated by the authority pursuant to the
criteria for priority consideration set forth in this section shall be entitled
to 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.).

����
b.
��� The following
criteria shall be utilized in according priority consideration for designation
of the seven additional enterprise zones authorized pursuant to P.L.1995, c.382
(C.52:27H-66.1 et al.), the additional enterprise zone authorized pursuant to
P.L.2003, c.285,
[
and
]

the additional zone designated pursuant to P.L.2004, c.75
, and the
additional enterprise zone authorized pursuant to
P.L. , c. (C.������� )
(pending before the Legislature as this bill)
:

���� (1)�� One zone shall be
located in a qualifying municipality with a population greater than 55,000 and
less than 65,000 according to the latest federal decennial census in a county
of the first class with a population density greater than 6,100 and less than 6,700
persons per square mile according to the latest federal decennial census
provided that the qualifying municipality is contiguous to a municipality in
which an enterprise zone is designated;

���� (2)�� One zone shall be
located in a qualifying municipality with a population greater than 70,000 and
less than 80,000 according to the latest federal decennial census;

���� (3)�� One zone shall be
located in a qualifying municipality with a population greater than 38,000 and
less than 39,500 according to the latest federal decennial census;

���� (4)�� One zone shall be
located in a qualifying municipality with a population greater than 45,000 and
less than 55,000 according to the latest federal decennial census;

���� (5)�� One zone shall be
located in a qualifying municipality with a population greater than 21,000 and
less than 22,000;

���� (6)�� One zone shall be
located in a qualifying municipality with a population greater than 29,000 and
less than 32,000 according to the latest federal decennial census;

���� (7)�� One zone shall be
located within a qualifying municipality having a population greater than 7,000
and less than 9,000 according to the latest federal decennial census in a
county of the first class with a population greater than 550,000 and less than
560,000 according to the latest federal decennial census;

���� (8)�� An additional zone shall
be located within a qualifying municipality with a population greater than
11,400 and less than 11,600 according to the latest federal decennial census in
a county of the second class with a population greater than 500,000 and less
than 520,000 according to the latest federal decennial census;
[
and
]

���� (9)�� An additional zone shall
be located within a qualifying municipality with a population greater than
48,000 and less than 49,000 according to the latest federal decennial census in
a county of the second class with a population of greater than 750,000 according
to the latest federal decennial census
; and

����
(10) An additional zone
shall be located within a qualifying municipality, in which casino gaming is
authorized, with a population greater than 38,500 and less than 40,500 according
to the latest federal decennial census in a county of the fifth class with a
population greater than 260,000 and less than 300,000, according to the latest
federal decennial census
.

(cf: P.L.2004, c.75, s.3)

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

���� 21.� a.� (1)� Receipts of
retail sales, made by a seller located in an eligible block group, as defined
in subsection a. of section 12 of P.L.2021, c.197 (C.52:27H-99) and provided a
UZ-2 certification by the authority 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 seq.), or a UEZ-impacted business district established prior to the
effective date of P.L.2021, c.197 pursuant to section 3 of P.L.2001, c.347
(C.52:27H-66.2), shall be exempt to the extent of 50 percent of the tax imposed
under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et
seq.).

���� (2) As used in this section,
the term "retail sales" means all retail sales except retail sales
of:

���� (1) motor vehicles;

���� (2) alcoholic beverages as
defined in the "Alcoholic beverage tax law," R.S.54:41-1 et seq.;

���� (3) cigarettes as defined in
the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.);

���� (4) manufacturing machinery,
equipment or apparatus;

���� (5) energy;

���� (6) medical cannabis and
cannabis products sold under the "Jake Honig Compassionate Use Medical
Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et seq.); and

���� (7) recreational cannabis and
cannabis products sold under the "New Jersey Cannabis Regulatory,
Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16
(C.24:6I-31 et seq.).

���� b.��� 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 UEZ Authority for a UZ-2 certification pursuant to this section provided
the seller is located in an eligible block group, as defined in subsection a.
of section 12 of P.L.2021, c.197 (C.52:27H-99).� The UEZ Authority shall
certify a seller if the UEZ Authority 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 UEZ Authority may at any time
revoke a certification granted pursuant to this section if the UEZ Authority
shall determine that the seller no longer complies with the provisions of this
section.� The Department of the Treasury shall provide to a qualified business
a certificate evidencing its UZ-2 certification, which certificate shall
indicate the location at which the sales tax exemption provided for in this
section is available.

���� c.���� Notwithstanding the
provisions of P.L.1983, c.303 (C.52:27H-60 et seq.) to the contrary, except as
may otherwise be provided by section 7 of P.L.1983, c.303 (C.52:27H-66)
and
section 6 of P.L.�� �, c.�� �(C.������ �) (pending before the Legislature as
this bill)
, 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 determination only where the authority finds
that the award of an exemption of 50 percent of the tax imposed under the
"Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) will not
have any adverse economic impact upon any other urban enterprise zone.

���� d.��� Notwithstanding any
other provision of law to the contrary, the gross amount of all revenues
received from the taxation of retail sales to which the exemption under this
section applies, except for amounts credited to the Property Tax Reform Account
in the Property Tax Relief Fund pursuant to paragraph 7 of Section I of Article
VIII of the New Jersey Constitution, shall be deposited immediately upon
collection by the Department of the Treasury into the enterprise zone
assistance fund created pursuant to section 29 of P.L.1983, c.303
(C.52:27H-88); provided, however, tax collected at the site of a redevelopment
project which is the subject of a redevelopment agreement with the State
pursuant to section 3 of P.L.1996, c.124 (C.13:1E-116.3) shall be credited to
the Municipal Landfill Closure and Remediation Fund pursuant to subsection b.
of section 6 of P.L.1996, c.124 (C.13:1E-116.6) and tax revenues on retail
sales of cannabis items shall be credited to the Cannabis Regulatory,
Enforcement Assistance, and Marketplace Modernization Fund and the Underage
Deterrence and Prevention Account pursuant to subsection a. of section 41 of
P.L.2021, c.16 (C.24:6I-50).

(cf: P.L.2023, c.282, s.1)

���� 5.��� 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
]

pursuant
to
section 21 of P.L.1983, c.303 (C.52:27H-80), as amended by this act,
P.L.2023, c.282, and moneys appropriated annually to the fund.� All moneys in
the fund shall be held and disbursed in accordance with this section and
section 11 of P.L.2021, c.197 (C.52:27H-98) as 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 fund,
or any portion thereof, to strengthen capital structures, leverage additional
debt capital, and increase lending and investing in economically disadvantaged
communities, and in any other manner that advances the goals of the Urban
Enterprise Zone program, including, but not limited to, legal obligations of
the United States or of the State or of any political subdivision thereof or
government-sponsored enterprises. Any income from, interest on, or increment to
moneys so invested or reinvested shall be included in the fund.

���� The amount in the enterprise
zone assistance fund, which shall be available to fulfill the purposes of this
section, shall be as follows:

���� (a)�� In the first five State
fiscal years next following the effective date of P.L.2021, c.197, 100 percent
of the amount determined pursuant to section 11 of P.L.2021, c.197
(C.52:27H-98) shall be available to fulfill the purposes of this section;

���� (b)�� In the sixth State
fiscal year next following the effective date of P.L.2021, c.197, 95 percent of
the amount determined pursuant to section 11 of P.L.2021, c.197 (C.52:27H-98)
shall be available to fulfill the purposes of this section and five percent of
such amount shall be deposited in the General Fund;

���� (c)�� In the seventh State
fiscal year next following the effective date of P.L.2021, c.197, 90 percent of
the amount determined pursuant to section 11 of P.L.2021, c.197 (C.52:27H-98)
shall be available to fulfill the purposes of this section and 10 percent of
such amount shall be deposited in the General Fund;

���� (d)�� In the eighth State
fiscal year next following the effective date of P.L.2021, c.197, 85 percent of
the amount determined pursuant to section 11 of P.L.2021, c.197 (C.52:27H-98)
shall be available to fulfill the purposes of this section and 15 percent of
such amount shall be deposited in the General Fund;

���� (e)�� In the ninth State
fiscal year next following the effective date of P.L.2021, c.197, 80 percent of
the amount determined pursuant to section 11 of P.L.2021, c.197 (C.52:27H-98)
shall be available to fulfill the purposes of this section and 20 percent of such
amount shall be deposited in the General Fund; and

���� (f)�� In the 10th State fiscal
year next following the effective date of P.L.2021, c.197, 75 percent of the
amount determined pursuant to section 11 of P.L.2021, c.197 (C.52:27H-98) shall
be available to fulfill the purposes of this section and 25 percent of such
amount shall be deposited in the General 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 seq.) that is in good standing with the UEZ Authority in
accordance with rules adopted by the UEZ Authority, and one in the authority's
name for the administration of the Urban Enterprise Zone program, and for
providing grants, including planning grants, investments, loans, or other
guaranties related to qualified assistance fund expenses.� The State Treasurer
shall credit to each account an amount of the moneys deposited in the fund and
available to fulfill the purposes of this section, which amount shall be
determined by a weighted formula that applies 50 percent weight to a zone
municipality's number of commercial and industrial parcels as recorded by the
municipal tax assessor, its Municipal Revitalization Index Distress Score, as
determined by the Department of Community Affairs, and the average number of
unemployed persons in the municipality according to data provided by the New
Jersey Department of Labor and Workforce Development, and 50 percent weight to
the gross taxable sales in the municipality subject to reduced sales tax
pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80), as determined by the
State Treasurer.� The data used in the formula, developed under this section,
shall be the most recent data that has been made available by the Department of
Community Affairs, the Department of Labor and Workforce Development, and the
State Treasurer.� When funds are received by a qualifying municipality pursuant
to this subsection, the funds shall be placed in a new trust or, for a
qualifying municipality that has a trust for an enterprise zone on the
effective date of P.L.2021, c.197, in the existing trust.� The Division of
Local Government Services in the Department of Community Affairs shall
promulgate regulations, policies, or procedures as necessary to implement the
provisions of this section.

���� (3) Beginning in State Fiscal
Year 2022, $2,500,000 shall be appropriated annually from the account in the
authority's name for the administration of the Urban Enterprise Zone program,
and for providing grants, investments, loans, or other guaranties related to
qualified assistance fund expenses.� This amount shall be adjusted annually by
the percentage change in the 12-month Consumer Price Index from June 30 to July
1.

���� (4)�� The State Treasurer
shall promulgate the rules and regulations necessary to govern the
administration of the 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 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
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.

���� Any individual, including an
individual who is not directly employed by a municipality, with the authority
to administer, allocate or approve the use of 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
]

Except as
provided in section 6 of P.L. , c. (C. ) (pending
before the Legislature as this bill), the
enterprise zone assistance fund
shall be used for the purpose of assisting qualifying municipalities in which
enterprise zones are designated in undertaking economic development projects in
designated enterprise zones by funding qualified assistance fund expenses.�
However, a municipality shall not appropriate or expend: more than 25 percent
of the amount annually credited to its enterprise zone assistance fund for
public safety purposes, as described in paragraph (4) of subsection m. of
section 3 of P.L.1983, c.303 (C.52:27H-62); or more than 10 percent of the
amount annually credited to its enterprise zone assistance fund for administrative
expenses.

���� 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 municipality for that
enterprise zone may, by resolution jointly adopted after public hearing, propose
to undertake an economic development project in the enterprise zone, and to
fund that project 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 and shall include:

���� (1)�� A description of the
proposed project;

���� (2)�� An estimate of the total
project costs, 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;

���� (4)�� A statement of the time
necessary to complete the project;

���� (5)�� A statement of the
manner in which the proposed project furthers the municipality's policy and
intentions for addressing economic development in 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 will accomplish its purpose.

���� As used in this section,
"project" means an activity that satisfies the requirements of a
qualified assistance fund expense, as that term is defined in subsection m. of
section 3 of P.L.1983, c.303 (C.52:27H-62), and which will lead to the creation
of new jobs and increased economic activity within the zone.

���� d.��� (Deleted by amendment,
P.L.2021, c.197)

���� e.���� (Deleted by amendment,
P.L.2021, c.197)

���� f.���� (Deleted by amendment,
P.L.2021, c.197)

���� g.��� (Deleted by amendment,
P.L.2021, c.197)

���� h.��� At the end of a State
fiscal year, if a municipality has not encumbered a portion of its allocation,
such amount may be carried forward to the next State fiscal year and the State
fiscal year thereafter.� If at the end of the third State fiscal year any of
those unencumbered funds remain, then the funds shall be transferred to the UEZ
Authority's account in the enterprise zone assistance fund.

���� i.���� At the end of a State
fiscal year, if a municipality has not expended or otherwise committed a
portion of its encumbered funds, then such amount may be carried forward to the
next three succeeding State fiscal years.� If at the end of the third State fiscal
year any unexpended funds remain, then the funds shall be transferred to the
UEZ Authority's account in the enterprise zone assistance fund.

���� j.���� At the end of a State
fiscal year, the Department of Community Affairs shall review an enterprise
zone's expenditures of funds received from the zone assistance fund.� If the
department finds that an enterprise zone expended such funds in a manner inconsistent
with the provisions of P.L.1983, c.303 (C.52:27H-60 et seq.) and P.L.2021,
c.197, then the enterprise zone shall repay such funds to the department
through the forfeiture of future zone assistance fund disbursements.� The
department shall withhold future funding from the enterprise zone until the
enterprise zone enters into and complies with a corrective action plan
developed by the department.

���� k.��� If in a State fiscal
year the amount allocated to the enterprise zone assistance fund is less than
the amount required to be allocated to fulfill the purposes of this section
pursuant to section 11 of P.L.2021, c.197 (C.52:27H-98) and paragraph (1) of subsection
a. of this section, the Legislature shall appropriate to the enterprise zone
assistance fund the amount that was not allocated in such State fiscal year in
a succeeding State fiscal year along with the funds required to be allocated in
that State fiscal year.

(cf: P.L.2023, c.282, s.2)

���� 6.��� (New section) �a.�
Notwithstanding the provisions of sections 7 and 21 of P.L.1983, c.303
(C.52:27H-66 and C.52:27H-80), for an enterprise zone designated pursuant to
the provisions of paragraph (10) of subsection b. of section 3 of P.L.1995,
c.382 (C.52:27H-66.1), 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
exempt to the extent of 50 percent of the "Sales and Use Tax Act,"
P.L.1966, c.30 (C.54:32B-1 et seq.) but shall be collected in a manner
consistent with that act.� The revenues derived from the sales tax collected
from those retail sales shall be divided as follows: (1) for the first five
years of the designation as an enterprise zone, the General Fund of the State
of New Jersey shall receive zero percent; and the remaining 100 percent shall
be deposited into the separate account maintained within the enterprise zone
assistance fund for the applicable qualifying municipality�s enterprise zone trust
fund account; and (2) for the second and final five years of the designation as
an enterprise zone, the General Fund of the State of New Jersey shall receive 70
percent; and the remaining 30 percent shall be deposited into the separate
account maintained within the enterprise zone assistance fund for the
applicable qualifying municipality�s enterprise zone trust fund account.

���� b.��� Notwithstanding the
provisions of section 29 of P.L.1983, c.303 (C.52:27H-88), all of the revenues
deposited into the separate account maintained within the enterprise zone
assistance fund for the applicable qualifying municipality�s enterprise zone trust
fund account shall be used by the qualifying municipality for the purpose of
providing local property tax relief.

���� 7.��� This act shall take
effect immediately.

STATEMENT

���� This bill, designated as the
"Atlantic City Urban Enterprise Zone and Property Tax Relief Act,"
authorizes the creation of an urban enterprise zone (zone) in the city of
Atlantic City for a one-time term of 10 years.� The zone authorized under this
bill would be the 33rd zone created under the Urban Enterprise Zone program,
which was first authorized in 1983. �The additional zone authorized pursuant to
this bill is required to be designated within 90 days of the date of the
submittal of an application and zone development plan by the municipality.�
Qualifying retail businesses in the additional zone to be designated pursuant
to the criteria for priority consideration set forth in the bill would be
entitled to collect sales and use tax reduced to the extent of 50 percent of
the sales and use tax (SUT).� A business operating as a casino is not eligible
for the benefits of an eligible business under the UEZ program but a business
operating on casino property not owned by a casino business may be eligible if
it otherwise meets the criteria for business eligibility.� During the first
five years, all of the SUT revenues collected are to be appropriated for use by
Atlantic City and during the second final five years, 66.5 percent of the SUT
revenues collected are to be appropriated for use by Atlantic City.� These
revenues are to be used by Atlantic City to provide local property tax relief.

���� This bill is meant to address
the negative economic conditions experienced by Atlantic City over the past
several years as the city transitions from a casino gaming destination to a
general-interest tourist destination.�