Legislation (P.L. 2001, c.347) effective April 1, 2002, provided for the designation of a joint municipal Urban Enterprise Zone (UEZ) consisting of North Wildwood City, Wildwood City, Wildwood Crest Borough and West Wildwood Borough. This designation allows certified vendors in the joint zone to collect Sales Tax on certain sales of tangible property at the reduced Sales Tax rate of 3%. This law may change the way businesses located in these areas file their New Jersey Sales and Use Tax returns.
Businesses that file Monthly Cape May County Tourism Return (ST-350):
Currently, in addition to the 6.625% New Jersey Sales Tax, the 2% Tourism Sales Tax is collected on tourism-related sales which are sales of meals and prepared foods; admissions; and hotel occupancies. Under the Urban Enterprise Zone Act, sales of meals and prepared foods, admissions and hotel occupancies are NOT eligible for the reduced 3% rate. Therefore, vendors of goods and services that are subject to the Tourism Sales Tax will continue to collect the 6.625% sales tax and the 2% Tourism Sales Tax on those sales. You will continue to report these tourism-related sales on the monthly Cape May County Tourism Sales Tax Return (ST-350).
However, if you also make retail sales of tangible property from a business location within the Urban Enterprise Zone, you may apply to the local zone coordinator for certification as a reduced rate vendor under the UEZ program. If you receive certification, a UZ-2 Certificate will be issued and the UZ-50 monthly returns will be sent. Then, in addition to the ST-350, you will file a UZ-50 and report non-tourism-related sales at the regular 6.625% rate and at the 3.312% rate for qualified reduced rate sales. A vendor that filed the ST-350 would not receive new returns for the remainder of 2002. However, the instructions for lines 4 and 8 are amended to read as follows:
4. Gross receipts from all other sales not subject to the Tourism Tax. If certified for Urban Enterprise Zone Reduced Rate collections, report these receipts on form UZ-50 only.
8. Allowable deductions for sales not detailed above. If certified for Urban Enterprise Zone Reduced Rate collections, report these deductions on form UZ-50 only.
Businesses that file the ST 50/51:
If you do not make any tourism-related sales, you currently file the Sales & Use Tax Quarterly Return (ST-50) and make monthly remittances (ST-51). If you do not obtain certification from the UEZ Authority as a reduced rate vendor under the Urban Enterprise Zone program, you will continue to report and remit Sales Tax in the same manner. However, if you obtain certification as a qualified UEZ business, you will receive the monthly UZ-50 returns wherein you will report all sales, whether at the reduced rate or at the full 6.625% rate. You will stop filing the ST-50/51 returns, and only file the UZ-50 return.
Important: All inquiries concerning certification as a reduced rate UEZ vendor should be directed to: New Jersey Department of Commerce and Economic Growth, 20 W. State St, P.O. Box 820, Trenton, New Jersey 08625-0820; or by telephone at (609) 292-1912.