As of January 1, 2017, the following five NJ urban enterprise zones (UEZ) will expire.  This means that if you have a for-profit business client in the following UEZ’s:

  • Bridgeton
  • Camden
  • Newark
  • Plainfield
  • Trenton

The business will no longer be able to collect NJ sales tax at a 50% reduced rate and you will no longer have exemption in paying NJ sales tax.  The business will receive a Form ST-2 (Sales Tax Certificate of Authority), which will replace Form UZ-2 (Urban Enterprise Zone Certificate of Authority).  The business will have to file regular New Jersey sales and use tax returns and must collect and pay at the normal tax rate, which will be 6.875% as of January 1, 2017.

Contact us with questions or view more details at http://www.state.nj.us/treasury/taxation/ueznotice.shtml.