The Pemberton Township Urban Enterprise Zone
Pemberton Township was designated as an Urban Enterprise Zone in May 23, 1996. The designation prompted by the New Jersey Urban Enterprise Zone Act of 1983 authorized the provision of tax incentives and other benefits to businesses in targeted distressed urban areas throughout the State of New Jersey. The intended impact of the Urban Enterprise Zone legislation was the revitalization of the State's distressed urban communities through the creation of private sector jobs and investment in targeted urban areas.
In Pemberton Township, since the Urban Enterprise Zone's inception, 184 private sector employers have participated in the program and investing $29,243,948 in the participating businesses.
Business Benefits of Locating Within the Enterprise Zone
SALES AND USE TAX EXEMPTIONS:
Participating Urban Enterprise Zone businesses are exempt from paying the state sales tax on certain products and services. After being approved by the state Urban Enterprise Zone Office, the business receives a combined Urban Enterprise Exempt Purchase Permit and Exempt Qualifying Business Permit directly from the New Jersey Division of Taxation. The business also receives a Contractor's Exempt Purchase Certificate. These certificates must be presented when tax-exempt purchases are made. Each year the business receives updated permits and certificates after it re-certifies into the program.
REDUCED SALES TAX:
Participating retailers are eligible to charge a reduced sales tax (3.5% rather than 7%) on merchandise. Before any retail business can collect the reduced sales tax, it must complete a New Jersey Division of Taxation UZ-1 form. The Division of Taxation will send the business a Sales Tax Certificate of Authority for reduced sales collections.
EMPLOYEE TAX CREDIT:
Participating businesses that are not warehousing or retail-sales-oriented, may be eligible for the Employee Tax Credit. It is available to corporations subject to the Corporate Business Tax which hire certain new employees at the zone location after they have been certified into the program. The corporation may claim either a $1,500 or $500 credit for each new employee, provided certain employment criteria are met.
UNEMPLOYMENT INSURANCE AWARD:
Participating businesses that hire new employees meeting one or more of the following criteria, and who also have a positive unemployment insurance rate, are eligible to apply for an Unemployment Insurance Award. The employees must earn less the $4,500 per quarter. Every March, the Department of Labor will send an application to all businesses that report hiring employees meeting the necessary criteria.
EMPLOYEE CRITERIA FOR BOTH THE TAX CREDIT AND UNEMPLOYMENT INSURANCE AWARD:
- The employee is a resident of New Jersey municipality in which any urban enterprise zone is located.
- The employee is a New Jersey resident who has been unemployed or received New Jersey public assistance six months prior to being hired.
- The employee is economically disadvantaged according to the Federal Job Training Partnership Act (JPTA).
For a business to qualify for Enterprise Zone benefits, it must registered with the New Jersey Division of Taxation. Secondly, your business must be physically and permanently located within the Pemberton Township Enterprise Zone. Businesses that existed in the zone before May 23, 1996, the time of designation, can qualify if they can demonstrate an ability to increase employment in the municipality. Businesses locating in the Zone after designation are qualified if 25% of their full-time new employees meet one or more of the characteristics referenced above. To get certified you must register with NJ Premier Business Services (PBS) and follow these four steps:
- Create/access your NJ Premier Business Services (PBS) account (step-by-step instructions).
- Add your business to your PBS account..
- Click on the Urban Enterprise Zone link under Select a Service Center in PBS.
- Complete and submit the UEZ Certification Application.
Instructions, procedures, and additional assistance are available throughout the application screens.
Businesses engaged primarily in catalogue or mail order sales cannot qualify.
Zone Incentives For Businesses
- 100% sales tax exemptions for materials and tangible personal property (rugs, building materials, computers etc.
- Qualified retail businesses may charge 50% of the mandated 7% NJ sales tax on certain in person purchases. (50% off regular sales tax rate to your customers on taxable items)
- A one-time corporation tax credit of $1,500 for each full-time permanent employee who is a resident of a municipality in which a zone is located and has been unemployed for at least 90 days or dependent upon public assistance.
- Subsidized unemployment insurance costs for certain new employees with gross salaries less than $4,500.00 per quarter as per Department Labor schedule
- Tax credit against the Corporation Business Tax of 8% of Investment in the zone by an approved "In Lieu" agreement with the Urban Enterprise Zone Authority and Municipality.
- Priority financial assistance from the New Jersey Local Development Financing Fund (LDFF) and Department of Labor Job Training Program.
The Department of Community Development provides prospective and certified zone businesses with a full range of services, including assistance with processing of applications for designations and annual re-certifications. Any business interested in becoming member of the Pemberton Township Urban Enterprise Zone should contact the Department of Community Development:
Pemberton Township Urban Enterprise Zone
500 Pemberton-Browns Mills Road
Pemberton, NJ 08015