ASSEMBLY COMMERCE AND MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2331

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 12, 1997

      The Assembly Commerce and Military and Veterans' Affairs Committee reports favorably Assembly Bill No. 2331 with committee amendments.

      As amended, this bill changes to one year the period, with annual renewals possible, for which a 50% sales tax exemption certification can be issued to a vendor located in an urban enterprise zone (UEZ). Also, the bill provides for a review by the Division of Taxation, in the Department of the Treasury, in order for a vendor located in a UEZ to have its certification as a qualified business issued or renewed. It is unfair to permit certain UEZ vendors who do not file or pay taxes on time to receive indefinitely the benefits of a 50% sales tax reduction. An annual review of the UEZ business at the time it renews its certification will help to better ensure proper tax compliance.

      The committee amended the bill to provide that the director may require a vendor to resolve all delinquencies and deficiencies before certification is issued or renewed if the vendor has not appealed the finding of delinquency and if the right of appeal has expired.

      The committee also adopted technical amendments to conform the bill to the most recent version of existing law.