 |
Tax Incentives: Municipal Programs
The Urban Enterprise Zone Program (UEZ) is designed to encourage business development by easing taxation and regulation requirements. There are four incentives offered to UEZ-certified businesses.
UNEMPLOYMENT TAXES: Businesses are eligible for a graduated unemployment tax credit for new employees whose gross salaries are less than $1,500 per month. The credit is based on the amount of employment tax on the following schedule:
100% SALES TAX EXEMPTION FOR PURCHASES: Purchase of tangible personal property (except motor vehicles) used in the zone business, including office equipment, trade fixtures and store furnishings, is exempt from the state's Sales and Use tax. Purchase of tangible personal property (except motor vehicles) used in the zone business, including office equipment, trade fixtures and store furnishings, is exempt from the state's Sales and Use tax. Purchase of services including installing, maintaining, altering or repairing real property used in the zone business and advertising services is exempt.
50% SALES TAX EXEMPTION FOR RETAIL SALES: Receipts from the retail sale of tangible personal property is exempt from 50% of the state's Sales and Use tax. The present sales tax of 6% is reduced to 3%. The remaining 3% sales tax will be placed in a fund directly by the Division of Taxation to be directed back to the zone for use on projects which benefit the zone. This exemption does not apply to motor vehicles and manufacturing equipment.
NEW EMPLOYEE CREDITS: Credit is available for new employees hired.
$1,500 credit for hiring a City resident who was unemployed or on public assistance for 90 days prior to employment.
$500 credit for hiring a City resident not employed in the City prior to being hired.
|
|