Designates Hackensack City as urban enterprise zone.

A4966

ASSEMBLY, No. 4966

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblywoman� SHAMA A. HAIDER

District 37 (Bergen)

SYNOPSIS

���� Designates Hackensack City as urban enterprise zone.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the establishment of urban enterprise zones
and amending P.L.1983, c.303 and P.L.1995, c.382.

����
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may be withdrawn by the authority if a business is continually delinquent in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;

���� 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: (1) the municipalities accorded designation
pursuant to section 7 of P.L.1983, c.303 (C.52:27H-66); (2) the municipalities
set forth in section 3 of P.L.1995, c.382 (C.52:27H-66.1); and (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)
;

���� 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.

(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.��� 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. (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
, or P.L.�� , 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.).� 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. (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 with a poverty rate of at
least 12 percent, according to the 2023 Municipal Revitalization Index, and a
population greater than 45,000 in the county of the first class with the
highest population, with populations determined according to the latest federal
decennial census
.

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

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

STATEMENT

���� This bill authorizes the
creation of an urban enterprise zone (UEZ), based upon certain poverty and
population statistics, in Hackensack City in Bergen County.� The UEZ authorized
under this bill establishes a total of 33 UEZs created under the UEZ program,
which was first authorized in 1983.� The additional UEZ authorized under the
bill is to be designated within 90 days of the date the municipality submits an
application and zone development plan to the New Jersey Urban Enterprise Zone
Authority.� Qualified businesses in the additional UEZ designated under the
bill are entitled the benefits under the UEZ program, including, but not
limited to, the collection of sales and use taxes on retail sales at a tax rate
of half of the tax imposed under the "Sales and Use Tax Act."