§ 52:27H-98 — Tax expenditures for State fiscal years.

11. a. The combined State tax expenditures in State Fiscal Year 2022 for the Urban Enterprise Zone Special Sales Tax Rate and Urban Enterprise Zone Exempt Business Purchases, as expressed in the Fiscal Year 2022 State of New Jersey Tax Expenditure Report, shall be the "ZAF base fund amount." In State Fiscal Year 2023, the amount to be appropriated to the enterprise zone assistance fund and made available to fulfill the purposes set forth in section 29 of P.L.1983, c.303 (C.52:27H-88) shall be determined as follows: The State Treasurer, in consultation with the UEZ Authority, shall determine the combined State tax expenditures for the Urban Enterprise Zone Special Sales Tax Rate and Urban Enterprise Zone Exempt Business Purchases in the six-month period beginning January 1, 2022 and ending June 30, 2022. The combined State tax expenditures for the Urban Enterprise Zone Special Sales Tax Rate and Urban Enterprise Zone Exempt Business Purchases for the six-month period beginning January 1, 2022 and ending June 30, 2022, shall be multiplied by two and then subtracted from the ZAF base fund amount. The difference shall be the amount to be appropriated to the enterprise zone assistance fund and made available to fulfill the purposes set forth in section 29 of P.L.1983, c.303 (C.52:27H-88) in State Fiscal Year 2023. Beginning in State Fiscal Year 2024, and in each State fiscal year thereafter, the amount to be appropriated to the enterprise zone assistance fund and made available to fulfill the purposes set forth in section 29 of P.L.1983, c.303 (C.52:27H-88) shall be determined as follows: After January 1 but prior to June 30, the State Treasurer, in consultation with the UEZ Authority, shall develop a methodology to compare the combined State tax expenditures for the Urban Enterprise Zone Special Sales Tax Rate and Urban Enterprise Zone Exempt Business Purchases in the prior State fiscal year with the ZAF base fund amount to calculate the savings achieved by P.L.2021, c.197. The savings determined shall be the amount appropriated to the enterprise zone assistance fund to fulfill the purposes set forth in section 29 of P.L.1983, c.303 (C.52:27H-88) for the State fiscal year. b. Notwithstanding the provisions of subsection a. of this section, for State Fiscal Year 2023 and thereafter, the amount appropriated to the enterprise zone assistance fund and made available to fulfill the purposes set forth in section 29 of P.L.1983, c.303 (C.52:27H-88) shall not exceed $82,500,000, and in Fiscal Year 2024, and in each year thereafter, $82,500,000 as adjusted annually based on the percentage change in the 12-month Consumer Price Index from June 30 to July 1 of each year, and shall be no less than $60,000,000. Should the balance of the enterprise zone assistance fund be in excess of the amount appropriated annually to fulfill the purposes set forth in section 29 of P.L.1983, c.303 (C.52:27H-88), such excess amount shall be deposited in the General Fund. If the application of the formulas set forth in subsection a. of this section will result in an appropriation to the enterprise zone assistance fund that is less than $60,000,000 and made available to fulfill the purposes set forth in section 29 of P.L.1983, c.303 (C.52:27H-88) in any State fiscal year, then the State Treasurer, in consultation with the UEZ Authority, shall impose a limit on the receipts from retail sales of tangible personal property and sales of services to a qualified business that are exempt from the sales and use tax pursuant to section 20 of P.L.1983, c.303 (C.52:27H-79); provided, however, that no less than the receipts from the first $50,000 of retail sales of tangible personal property and sales of services to a qualified business shall be exempt from the sales and use tax in accordance with section 20 of P.L.1983, c.303 (C.52:27H-79). L.2021, c.197, s.11; amended 2023, c.282, s.3.