Urban Enterprise Zone – Vineland & Millville
The Urban Enterprise Zone Program is a twenty-year program created by the State of New Jersey as a tool to create economic development and employment in distressed cities. The Vineland/Millville Zone is one of twenty-seven zones in New Jersey. Vineland and Millville became active in the Urban Enterprise Zone Program in April 1986.
On January 7, 2002 Acting Governor DiFrancesco signed the final version of Senate Bill#322. This means that businesses currently taking advantage of the Urban Enterprise Zone Program benefits will be able to continue another sixteen years, beginning April 1, 2002. Three and a half percent sales tax, tax-exempt purchases, and employee tax benefits will continue until the year 2019.
The Urban Enterprise Zone Program has been successful in many ways. The sales tax generated by the program is returned to Zone Assistance Funds for Vineland and Millville. The cities will receive 3% the first five years, 2% the second five years, and 1% the third five years. Zone Assistance Funds are used for projects, to improve infrastructure, hire police and fireman, purchase of emergency equipment, and economic development loans.
The Enterprise Zone Development Corporation of Vineland-Millville (EZDC) administrates the Urban Enterprise Zone Program. The EZDC Board of Directors consists of nine members, which includes five members from Vineland and four members from Millville. Two of the nine members are the mayors of Vineland and Millville. The mayors alternate being Chairman and Vice Chairman on a yearly basis.
Although Vineland and Millville operate their own loan programs and create their own projects to be considered for use of Zone Assistance Funds, the Urban Enterprise Zone Program benefits are the same for both cities and are as follows:
- As an Urban Enterprise Zone participant, a company is exempt from paying sales tax on certain products and services. This benefit includes exemption from sales tax on construction costs, office furniture, office supplies, and equipment. After being approved by the Office of Urban Programs in Trenton, your information will be forwarded to the New Jersey Division of Revenue. You will receive a UZ-4 Contractor’s Exempt Form and if your businesses grosses less than one million dollars in receipts you will receive a UZ-5-SB Form. If your businesses grosses over this amount you will be eligible to do a Claim for Refund. These exempt forms are then forwarded to your vendors for proof of tax exemption status.
- Participating retailers are eligible to charge a reduced sales tax (3.5% rather than 7%) on certain merchandise.
- 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 Corporation Business Tax, which hire certain new employees at the zone location after they have been certified into the program.
- Participating businesses that hire new employees meeting one or more of the characteristics that apply to the “25% Employment Factor” (explained in application material), and have a positive unemployment insurance rate, are eligible to apply for an unemployment tax award.
Changes to the UEZ Refund as of 3/22/11 (PDF).
Copyright 2006 Vineland/Millville UEZ. All Rights Reserved. Site maintained for posterity.