The bill introduces a 50 percent sales and use tax exemption for telephone, mail-order, and internet transactions conducted by qualified businesses within Urban Enterprise Zones (UEZ). It expands the definition of a "qualified business" to include those employing at least 25 percent of their full-time workforce from eligible block groups, with specific residency and income criteria. The bill also updates the criteria for low-income individuals by replacing the reference to the Workforce Investment Act of 1998 with the Workforce Innovation and Opportunity Act. Additionally, it allows qualified businesses to file quarterly tax returns instead of monthly, streamlining the reporting process for those collecting less than $30,000 in sales tax.

Moreover, the bill increases the allowable administrative expenses for municipalities from 10 percent to 15 percent of the enterprise zone assistance fund. It mandates an annual appropriation of $2,500,000 for the administration of the UEZ program, with adjustments based on the Consumer Price Index. The bill requires municipalities to create separate bank accounts for different types of funds and outlines the process for proposing economic development projects funded by the enterprise zone assistance fund. It also includes provisions for the review of expenditures by the Department of Community Affairs and allows unencumbered funds to be carried forward for up to three fiscal years before being transferred to the UEZ Authority's account.

Statutes affected:
Introduced: 52:27H-62, 52:27H-88