The "Atlantic City Urban Enterprise Zone and Property Tax Relief Act" establishes a new urban enterprise zone in Atlantic City, which will be effective for ten years. This legislation amends existing laws to define key terms, such as "qualified business," which must meet specific criteria regarding employee residency and employment status. Importantly, casinos are excluded from being classified as qualified businesses, although businesses operating on casino properties may qualify if they meet the necessary criteria. The bill also allows the Urban Enterprise Zone Authority to revoke a business's qualified status if it fails to meet tax obligations. Additionally, the act expands the definition of "qualifying municipality" and increases the maximum number of enterprise zones from 32 to 33, mandating that the authority designate these zones within 90 days of receiving applications.

Furthermore, the bill modifies provisions related to the enterprise zone assistance fund, establishing guidelines for fund allocation over a ten-year period and emphasizing strict financial controls for municipalities. Qualifying retail businesses within the new zone will be able to collect sales and use tax at a reduced rate of 50 percent, with specific revenue allocation stipulations: 100 percent of SUT revenues will go to Atlantic City for the first five years, decreasing to 30 percent in the following five years. The revenues will be used for local property tax relief, supporting Atlantic City's transition from a casino-centric economy to a broader tourist destination amidst recent economic challenges.

Statutes affected:
Introduced: 52:27H-62, 52:27H-66, 52:27H-66.1, 52:27H-80, 52:27H-88