New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 120 - URBAN ENTERPRISE ZONE AUTHORITY › Subchapter 1 - URBAN ENTERPRISE ZONE PROGRAM › Section 5:120-1.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this chapter, shall
				  have the following meanings unless the context clearly indicates otherwise.
"Act" means the New Jersey Urban Enterprise Zones Act, P.L. 1983,
				  c. 303, as amended (52:27H-60 ).
"Administrator" means the Executive Director of the Urban
				  Enterprise Zone Program in, but not of, the New Jersey Department of Community
				  Affairs.
"Authority," "Zone Authority" or "UEZA" means the New Jersey Urban
				  Enterprise Zone Authority.
"Certification" means the application process by which a qualified
				  business operating within a zone becomes eligible for zone business benefits for
				  three years, subject to maintaining tax clearance.
"Certified business" or "certified qualified business" is a
				  qualified business that has applied for certification or recertification and that
				  application has been approved by the Administrator.
"Coordinator" means the person, designated by the mayor of the
				  municipality and supported by a resolution of the municipal council, who shall
				  report directly to municipal business administrator and manage the Urban Enterprise
				  Zone office including all matters relating to the application by qualified
				  businesses to enter the program, marketing and promoting the Urban Enterprise Zone
				  program to businesses operating or about to operate within that zone, and such other
				  program related activities as the Administrator shall direct.
"Enterprise zone," "UEZ" or "zone" means an urban enterprise zone
				  designated by the New Jersey Urban Enterprise Zone Authority pursuant to the
				  Act.
"Executive Director" means the title of the person delegated by
				  the Board of the UEZA to managed the operation of the Urban Enterprise Zone
				  Authority, whether by that title or another. Throughout this chapter, the Executive
				  Director is referred to by the functional title of the "Administrator" for
				  consistency with the statute.
"Full-time employee" of a qualified business means an employee
				  subject to tax withholding who works a consistent 30 hours or more per week. (See
				  the definition of "part-time employee" below.)
"NJEDA" or "EDA" means the New Jersey Economic Development
				  Authority, established pursuant to P.L. 1974, c. 80 and amendments thereto.
"Part-time employee" means an employee working a consistent 15
				  hours or more per week but fewer than 30 hours per week; therefore, for all
				  purposes, one-part time employee shall be considered as one-half full-time employee
				  in all calculations under the program. (See the definition of "full-time employee"
				  above.)
"Qualified business" means any entity authorized to do business in
				  the State of New Jersey which, at the time of designation as an enterprise zone, is
				  engaged in the active conduct of a trade or business in that zone or an entity
				  which, after that designation but during the designation period, becomes newly
				  engaged in the active conduct of a trade or business in that zone, and for which at
				  least 25 percent of its full-time employees (see the definition of "25 percent
				  factor" below), newly hired during the three years after the business becomes
				  initially certified as a UEZ business, meet one or more of the following
				  criteria:
1. Resident within the zone or
				within the municipality which the zone is located; or
2. Unemployed for at least six months prior to
				being hired and residing in New Jersey, or recipients of New Jersey public
				assistance programs for at least six months prior to being hired; or
3. Determined to be low-income individuals
				pursuant to the Workforce Investment Act of 1998,
				Pub. L.
				105-220 (
				29 U.S.C.
				§§
										2811 et seq.).
Approval as a certified qualified business shall be conditioned
				  upon the qualified business meeting all outstanding tax obligations, and may be
				  withdrawn by the Authority if a business is continually delinquent in meeting its
				  tax obligations. A certified business must annually provide, on a form determined by
				  the Division of Taxation and the Administrator, an authorization to verify tax
				  compliance and which form also certifies that the business is a "qualified
				  business."
A qualified business which is a closely-held entity does not cease
				  to be a qualified business due to a change in ownership provided that at least 51
				  percent or more of the ownership in the successor business continues to be held by
				  the same persons holding an interest in the original business. The successor firm
				  will not have to apply for initial certification and will be permitted to apply for
				  recertification in accordance with its existing schedule.
"Qualified small business" is defined as follows:
1. For purposes of distinguishing business size by
				number of employees, means any entity authorized to do business in the State of New
				Jersey which, at the time of designation of the enterprise zone, had been engaged in
				the active conduct of a trade or business in that zone for at least one year prior
				to that designation and which employs fewer than 50 full-time employees.
2. For purposes of determination of eligibility
				for a small business exemption from sales and use taxes at time of purchase of
				qualifying items, rather than by rebate, status as a "qualified small business"
				shall be based on total gross receipts of all related business activity in New
				Jersey, wherever situated. That limit is set pursuant to
				P.L.
				2008, c. 118, as it may be
				amended from time to time, and, as of November 2, 2009, is set at $ 10 million.
"Qualifying municipality" means any municipality in which there
				  was, in the last full calendar year immediately preceding the year in which
				  application for enterprise zone designation is submitted pursuant to section 14 of
				  the Act, an annual average of at least 2,000 unemployed persons, and in which the
				  average annual unemployment rate for that year exceeded the State average annual
				  unemployment rate; except that a municipality which qualifies for State aid pursuant
				  to P.L. 1978, c.14 (52:27D-178 et seq.) shall
				  qualify if its municipal average unemployment rate for that year exceeds the State
				  average annual unemployment rate. The annual average of unemployed persons and the
				  average annual unemployment rates shall be estimated for the relevant calendar year
				  by the Office of Labor Statistics, Division of Planning and Research of the State
				  Department of Labor and Workforce Development.
"Recertification" means the process for applying every three years
				  to continue to be eligible for zone business benefits, but the business must submit
				  to tax clearance annually.
"25 percent factor" refers to the requirement that 25 percent of
				  the new employees of a qualified business must meet certain criteria, as stated
				  under the definition "qualified business" above.
"Zone boundary expansion" means a change in the zone boundaries
				  that represents a net increase in the total area within the zone.
"Zone boundary modification" means a change in the zone boundaries
				  that represents no net increase in the area within the zone boundaries.
"Zone boundary revision" means any change in the boundaries of the
				  zone, whether by Zone boundary expansion or by Zone boundary modification.
"Zone business benefits" means those benefits as defined by
				  52:27H-75 to
				  52:27H-79.
"Zone development corporation" means a nonprofit corporation or
				  association created by the governing body of a qualifying municipality to formulate
				  and propose a preliminary zone development plan pursuant to section 9 of the
				  Act.
"Zone development plan" means a plan adopted by the governing body
				  of a qualifying municipality for the development of an enterprise zone therein, and
				  for the direction and coordination of activities of the municipality, zone
				  businesses and community organizations within the enterprise zone toward the
				  economic betterment of the residents of the zone and the municipality.
"Zone neighborhood association" means a corporation or association
				  of persons who either are residents of, or have their principal place of employment
				  in, a municipality in which an enterprise zone has been designated pursuant to the
				  Act; which is organized under the provisions of Title 15 of the Revised Statutes;
				  and which has for its principal purpose the encouragement and support of community
				  activities within, or on behalf of, the zone so as to:
1. Stimulate economic activity;
2. Increase or preserve residential
				amenities;
3. Otherwise encourage
				community cooperation in achieving the goals of the zone development plan.