TRENTON - Governor Jon S. Corzine today signed legislation that broadens the small qualified business exception under the Urban Enterprise Zone (UEZ) sales tax program. The measure is another facet of the Governor's Economic Recovery and Assistance Plan that focuses on extending immediate assistance and stimulating economic growth.

"In this tough economic environment, small businesses need the ability to invest in their future prosperity," said Governor Corzine. "The bill I am signing expands the number of Urban Enterprise Zone businesses eligible for point-of-sale exemption from sales tax for business supplies and other purchases. This move provides a targeted boost that will encourage growth in our urban economies during a deep recession."

This bill, A-2720/S-5, modifies provisions of the Urban Enterprise Zone sales tax exemption for purchases by qualified UEZ businesses with annual gross receipts ranging from $3 million up to $10 million.  Presently, qualified small businesses with annual gross receipts of less than $3 million are exempt from sales tax at the point of purchase.   

"The current process has been decried as an unnecessary administrative and monetary burden on local businesses," said Assemblyman Joseph Vas (D-Middlesex).  "Making this change will help businesses retain access to more of their money and will help encourage private-sector economic growth."

"The on-site sales tax exemption at the point of sale will speed up the process by which small businesses in enterprise zones can generate growth," said Senator Brian Stack (D-Hudson), a prime sponsor of S-5.

New Jersey's Urban Enterprise Zone program works to revitalize designated urban communities to stimulate business growth and the creation of jobs through public and private sector investment. There are 32 Urban Enterprise Zones in 37 municipalities throughout the state.

Senator Shirley K. Turner, (D-Mercer), another prime sponsor of S-5, said, "Promoting small businesses now will produce long-term, positive results down the road because they are the backbone of our economy."

Primary Assembly sponsors include Joseph Vas (D-Middlesex), John J. Burzichelli (D-Salem, Cumberland, Gloucester), Nellie Pou, (D-Bergen, Passaic) and Elease Evans (D-Bergen, Passaic). Senators Brian P. Stack (D-Hudson) and Shirley K. Turner (D-Mercer) were primary sponsors in the Senate.

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 Photos from Governor Corzine's public events are available
in the Governor's Newsroom section on the State of New Jersey web page, http://www.nj.gov/governor/news/