Gusciora’s Trenton tax incentive program bill signed into law by Gov. Murphy
TRENTON » Gov. Phil Murphy is reversing course on a program his predecessor eliminated.
On Wednesday, the Democratic governor signed into law a bill reestablishing a tax incentive program that helps businesses in Trenton and other urban cities. The legislation — sponsored by Assemblyman Reed Gusciora (D-Mercer/Hunterdon) — will reinstate Urban Enterprize Zones (UEZ) in Trenton, Bridgeton, Camden, Newark and Plainfield until Dec. 31, 2023.
“It means Griffith Electric will be able to continue to stay in the capital city,” Gusciora, who is running for Trenton mayor, said Wednesday. “With more economic development, we’ll even have more businesses that can prosper by offering reduced sales tax.”
Under the UEZ program, the sales tax is cut in half at businesses inside the zones.
The program has been inactive in the five cities since the start of 2017.
Last year, former Gov. Chris Christie called the program a “failed 30-year experiment” and rejected an extension of the program for another 10 years.
The recent bill asked for the program to also be extended another 10 years, but Murphy scaled it back to five.
“We’ll take the five years,” Gusciora said. “We believe Christie did this self-serving study that was only done by the administration to say that it wasn’t effective.”
The new legislation will require a report on the effectiveness of the program, which was created in 1983. The New Jersey Department of Community Affairs will be tasked with completing a study and report to determine whether the program “should be reconstituted, continued as it currently exists, or continued with specific recommended changes,” Democratic lawmakers said in a release.
“We want the governor to redo a real study that shows that it has indeed been a success,” Gusciora said.
The longtime 15th district legislator said one look at Griffith Electric’s parking lot, which generates $25 million in sales annually, in reason enough to continue it.
“When we had a UEZ, you would see contractors from Pennsylvania and outside of Mercer County coming there just to buy supplies because a lot of times it means the bottom line,’ Gusciora said.
The bill was co-sponsored by fellow 15th district legislator, State Sen. Shirley Turner (D-Mercer/ Hunterdon).