The following words and terms, when used in this chapter,
shall have the following meanings unless the context clearly indicates
otherwise.
"Act" means the New Jersey Urban Enterprise Zones Act, P.L.
1983, c. 303, as amended (N.J.S.A. 52:27H-60).
"Administrator" means the Executive Director of the Urban
Enterprise Zone Program in, but not of, the New Jersey Department of Community
Affairs.
"Authority," "Zone Authority" or "UEZA" means the New Jersey
Urban Enterprise Zone Authority.
"Certification" means the application process by which a
qualified business operating within a zone becomes eligible for zone business
benefits for three years, subject to maintaining tax clearance.
"Certified business" or "certified qualified business" is a
qualified business that has applied for certification or recertification and
that application has been approved by the Administrator.
"Coordinator" means the person, designated by the mayor of
the municipality and supported by a resolution of the municipal council, who
shall report directly to municipal business administrator and manage the Urban
Enterprise Zone office including all matters relating to the application by
qualified businesses to enter the program, marketing and promoting the Urban
Enterprise Zone program to businesses operating or about to operate within that
zone, and such other program related activities as the Administrator shall
direct.
"Enterprise zone," "UEZ" or "zone" means an urban enterprise
zone designated by the New Jersey Urban Enterprise Zone Authority pursuant to
the Act.
"Executive Director" means the title of the person delegated
by the Board of the UEZA to managed the operation of the Urban Enterprise Zone
Authority, whether by that title or another. Throughout this chapter, the
Executive Director is referred to by the functional title of the
"Administrator" for consistency with the statute.
"Full-time employee" of a qualified business means an
employee subject to tax withholding who works a consistent 30 hours or more per
week. (See the definition of "part-time employee" below.)
"NJEDA" or "EDA" means the New Jersey Economic Development
Authority, established pursuant to P.L. 1974, c. 80 and amendments
thereto.
"Part-time employee" means an employee working a consistent
15 hours or more per week but fewer than 30 hours per week; therefore, for all
purposes, one-part time employee shall be considered as one-half full-time
employee in all calculations under the program. (See the definition of
"full-time employee" above.)
"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, is engaged in the active conduct of a trade or business in
that zone 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, and for which at least 25 percent of its full-time employees (see
the definition of "25 percent factor" below), newly hired during the three
years after the business becomes initially certified as a UEZ business, meet
one or more of the following criteria:
1. Resident within the zone or within the
municipality which the zone is located; or
2. Unemployed for at least six months prior
to being hired and residing in New Jersey, or recipients of New Jersey public
assistance programs for at least six months prior to being hired; or
3. Determined to be low-income individuals
pursuant to the Workforce Investment
Act of 1998,
Pub. L.
105-220 (29 U.S.C. §§
2811 et seq.).
Approval as a certified qualified business shall be
conditioned upon the qualified business meeting all outstanding tax
obligations, and may be withdrawn by the Authority if a business is continually
delinquent in meeting its tax obligations. A certified business must annually
provide, on a form determined by the Division of Taxation and the
Administrator, an authorization to verify tax compliance and which form also
certifies that the business is a "qualified business."
A qualified business which is a closely-held entity does not
cease to be a qualified business due to a change in ownership provided that at
least 51 percent or more of the ownership in the successor business continues
to be held by the same persons holding an interest in the original business.
The successor firm will not have to apply for initial certification and will be
permitted to apply for recertification in accordance with its existing
schedule.
"Qualified small business" is defined as follows:
1. For purposes of distinguishing business
size by number of employees, means any entity authorized to do business in the
State of New Jersey which, at the time of designation of the enterprise zone,
had been engaged in the active conduct of a trade or business in that zone for
at least one year prior to that designation and which employs fewer than 50
full-time employees.
2. For
purposes of determination of eligibility for a small business exemption from
sales and use taxes at time of purchase of qualifying items, rather than by
rebate, status as a "qualified small business"
shall be based on total gross
receipts of all related business activity in New Jersey, wherever situated.
That limit is set pursuant to
P.L.
2008, c. 118, as it may
be amended from time to time, and, as of November 2, 2009, is set at $ 10
million.
"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 the Act, an annual average of at least 2,000 unemployed persons,
and in which the average annual unemployment rate for that year exceeded the
State average annual unemployment rate; except that a municipality which
qualifies for State aid pursuant to P.L. 1978, c.14 (N.J.S.A. 52:27D-178 et seq.) shall qualify if its
municipal average unemployment rate for that year exceeds 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 Statistics, Division of Planning and Research of
the State Department of Labor and Workforce Development.
"Recertification" means the process for applying every three
years to continue to be eligible for zone business benefits, but the business
must submit to tax clearance annually.
"25 percent factor" refers to the requirement that 25 percent
of the new employees of a qualified business must meet certain criteria, as
stated under the definition "qualified business" above.
"Zone boundary expansion" means a change in the zone
boundaries that represents a net increase in the total area within the
zone.
"Zone boundary modification" means a change in the zone
boundaries that represents no net increase in the area within the zone
boundaries.
"Zone boundary revision" means any change in the boundaries
of the zone, whether by Zone boundary expansion or by Zone boundary
modification.
"Zone business benefits" means those benefits as defined by
N.J.S.A. 52:27H-75 to
N.J.S.A. 52:27H-79.
"Zone development corporation" means a nonprofit corporation
or association created by the governing body of a qualifying municipality to
formulate and propose a preliminary zone development plan pursuant to section 9
of the Act.
"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.
"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 the Act; which is organized under the provisions of
Title 15 of the Revised 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;
3. Otherwise
encourage community cooperation in achieving the goals of the zone development
plan.
Notes
N.J. Admin.
Code §
5:120-1.2
Amended by R.2004 d.101,
effective 3/15/2004.
See: 35 N.J.R. 4816(a), 36 N.J.R. 1357(c).
Rewrote
"Administrator"; in "Zone neighborhood association", substituted "Statutes" for
"Statues" following "Revised".
Amended by R.2009 d.331, effective
11/2/2009.
See: 41
N.J.R. 2372(a), 41 N.J.R. 4071(b).
In the introductory paragraph,
substituted "chapter" for "subchapter"; in definition "Act" substituted "c.
303, as amended," for "ch. 303"; in definition "Administrator", inserted ", but
not of,"; substituted definition " 'Authority,' 'Zone Authority' or 'UEZA' "
for definition " 'Authority' or 'UEZA' "; added definitions "Certification",
"Certified business", "Coordinator", "Executive Director", "Full-time
employee", "NJEDA", "Part-time employee", "Qualified small business",
"Recertification", "25 percent factor", "Zone boundary expansion", "Zone
boundary modification", "Zone boundary revision" and "Zone business benefits";
substituted definition " 'Enterprise zone,' 'UEZ' or 'zone' " for definition "
'Enterprise Zone' or 'Zone' "; and rewrote definition "Qualified
business".
