James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Urban Enterprise Zones Come To An Abrupt End
Author: James F. McDonough
Date: November 21, 2016
Key Contacts
Back
NOTICE TO QUALIFIED BUSINESSES LOCATED IN URBAN ENTERPRISE ZONES
The following is an excerpt from a notice that was issued by the Division of Taxation in the Department of Treasury of the State of New Jersey.
NOTICE TO QUALIFIED BUSINESSES LOCATED IN URBAN ENTERPRISE ZONES
EXPIRATION OF URBAN ENTERPRISE ZONES
Effective December 31, 2016 at 11:59 p.m.
On December 31, 2016, at 11:59 p.m., five Urban Enterprise Zones (UEZ) will expire. Your UEZ-qualified business will be immediately affected if located in one of these five zones.
Beginning January 1, 2017, your business can no longer collect Sales Tax at a reduced rate. Your business must collect and remit Sales Tax at the full effective Sales Tax rate of 6.875%.
Your business will receive an ST-2, Sales Tax Certificate of Authority, which will replace your UZ-2, Urban Enterprise Zone Certificate of Authority. Your UZ-2 expires December 31, 2016, at 11:59 p.m.
The Bottom Line
This change will require taxpayers to modify software and procedures to comply. Invariably, there will be mistakes that state auditors will find and use to establish an error rate in sales and use tax audits. What is more difficult to determine is the impact that this will have on budgets and projections for operations in those districts. Many projects counted on the savings for those services that were not exempt from sales tax.
Do you have any questions? Would you like to discuss the matter further? If so, please contact me, James McDonough, at 201-806-3364.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.