SENATE, No. 1921
STATE OF NEW JERSEY
INTRODUCED MARCH 20, 1997
By Senator BARK
An Act authorizing certain benefits in designated historic districts and supplementing P.L.1970, c.268 (C.13:1B-15.128 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Historic District Economic Revitalization Act."
2. The Legislature finds and declares that:
a. This State is fortunate to have within its borders a substantial number of historic buildings and structures, the preservation of which inspires civic pride and promotes an awareness of the various cultural and aesthetic traditions which make up our heritage;
b. Many of these buildings and structures are concentrated in specific districts, many of which comprise the downtown business areas of our smaller communities and the business centers of some urban neighborhoods;
c. In recent years, these business districts have experienced economic difficulties due to shifting population bases, changes in the marketplace, and greater competition from suburban shopping malls, all of which have combined to erode the ability of small business and property owners to renovate and enhance their properties;
d. In a growing number of municipalities, local associations have been created to promote the economic revitalization of central business areas through public-private partnerships, and these associations often seek to link the preservation of historic buildings and structures with that economic revitalization;
e. In addition to the aesthetic and educational benefits of preserving historic buildings, the use of these buildings for business or residential purposes may involve substantial economic savings over the erection of new buildings owing to the sound basic construction and lower acquisition costs as well as the tax incentives for investing therein;
f. Because of the aesthetic, educational and economic importance of linking historic preservation and municipal revitalization, and in light of the precarious economic viability of many of our older neighborhoods, it is now incumbent upon the Legislature to create real incentives to encourage the establishment of historic districts and preservation planning in order to promote these historic and economic revitalization goals.
3. As used in this act:
"Qualified business" means any entity authorized to do business in the State of New Jersey which, at the time of designation as a historic district is engaged in the active conduct of a trade or business in that district; 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 district.
4. The following municipalities shall be entitled to an exemption to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) which is collected within the districts specified, as provided in section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill):
a. Any municipality which has adopted a historic preservation plan element pursuant to section 19 of P.L.1975, c.291 (C.40:55D-28) and within which is located a district or districts which have received a certificate from the State Historic Preservation Officer of the Department of Environmental Protection indicating eligibility for listing in the New Jersey Register of Historic Places pursuant to Title 13 of the Revised Statutes, or any rule or regulation adopted pursuant thereto; or
b. Any municipality which has adopted a historic preservation plan element pursuant to section 19 of P.L.1975, c.291 (C.40:55D-28), has designated a district therein, and has been recognized and approved by the New Jersey Historic Preservation Office in the Department of Environmental Protection and the National Park Service as an active participant in the federal Certified Local Government Program, administered by the New Jersey Historic Preservation office.
5. a. Receipts of retail sales, except retail sales of motor vehicles, of alcoholic beverages as defined in the "Alcoholic beverage tax law," R.S.54:41-1 et seq., cigarettes as defined in the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.) and of manufacturing machinery, equipment or apparatus, made by a certified vendor from a qualified business owned or leased and regularly operated by the vendor for the purpose of making retail sales, are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. Any vendor which is a qualified business may apply to the Director of the Division of Taxation in the Department of the Treasury for certification pursuant to this section. The director shall certify a vendor if he shall find that the vendor owns or leases and regularly operates a place of business located in the historic district for the purpose of making retail sales, that items are regularly exhibited and offered for retail sale at that location, and that the place of business is not utilized primarily for the purpose of catalogue or mail order sales. The director may at any time revoke a certification granted pursuant to this section if he shall determine that the vendor no longer complies with the provisions of this section.
c. If the district is included within a designated urban enterprise zone in which an exemption from receipts of retail sales has been granted pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80) or section 3 of P.L.1995, c.382 (C.52:27H-66.1), that retail sales tax exemption shall apply, and the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not apply.
6. Any vendor making sales from a location within the district and required to collect tax pursuant to the "Sales and Use Tax Act", P.L.1966, c.30 (C.54:32B-1 et seq.) shall register with the Director of the Division of Taxation in a manner prescribed by the director and file a return in such form and with such information as the director shall prescribe by rule or regulation as necessary to determine the municipal share of the tax.
7. Any vendor making sales from a location within the district and required to register under section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall, on or before the dates required pursuant to section 17 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-17), forward to the director the sales tax collected in the preceding return period and make and file a return for the preceding return period with the director on a form containing any information that the Division of Taxation in the Department of the Treasury shall prescribe by rule or regulation.
8. The State Treasurer shall promulgate those rules and regulations necessary to effectuate the purposes of this act pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
9. This act shall take effect immediately.
STATEMENT
This bill would authorize a 50 percent exemption from the retail sales tax imposed by the State in designated historic districts and in districts in municipalities that are active participants in the Federal Certified Local Government Program. Currently, the State sales tax is six percent, so that the effect of the bill would be to decrease to three percent the sales tax in these districts.
The bill considers as sales tax exempt the same retail sales which are tax exempt under the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.). This means that the full sales tax of six percent would continue to apply to retail sales of motor vehicles and of manufacturing machinery, equipment or apparatus made by a certified vendor from a place of business owned or leased and regularly operated by the vendor located within the historic district. As is the case in the urban enterprise zone program, qualified businesses situated within the district would be required to register with the Division of Taxation, and catalogue and mail order sales would not be covered by the exemption.
In order to be considered a historic district, an area would be required to be included with the historic preservation plan element of the municipality's master plan and either receive a certificate from the State Historic Preservation Officer of the Department of Environmental Protection indicating eligibility for listing in the New Jersey Register of Historic Places or be located in a municipality that has been recognized and approved by the New Jersey Historic Preservation Office and the National Park Service as an active participant in the federal Certified Local Government Program administered by the New Jersey Historic Preservation office.
If a historic district overlaps with an urban enterprise zone, the provisions of the urban enterprise zone law shall prevail. Unlike the tax exemption granted under that program, the tax exemption provided in historic districts under this bill does not expire after twenty years, but continues indefinitely.
Authorizes 50% retail sales tax exemption in historic districts.