TRENTON — The Sales and Use Tax Review Commission recommended the Legislature vote against the addition of a new Urban Enterprise Zone in the state.
Commissioners voted unanimously to recommend that Linden in Union not be New Jersey’s 33rd UEZ.
If legislation (A3042/S2017) sponsored by local lawmakers were signed into law, businesses in Linden would be allowed to collect half of the sales tax normally charged.
It would cost the state approximately $22 million a year, commissioners said.
The Urban Enterprise Zone was created in 1983 to foster an economic climate that revitalizes designated urban communities. Participating businesses in designated communities are able to charge reduced 3.5 percent sales tax and qualify for other benefits.
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