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Bill

Bill

S 3407

Designates Hackensack City as urban enterprise zone.

2026-2027 Regular Session Introduced by Gordon Johnson and 1 co-sponsor

Hackensack City is designated as a UEZ, enabling 50% sales tax exemption and related incentives to spur local economic development.

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee
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Bill Summary · S 3407

Summary of Bill S 3407 (Session 222) – New Jersey

Designation of Hackensack City as an Urban Enterprise Zone (UEZ)

Purpose and intent

  • The bill authorizes the creation of an urban enterprise zone (UEZ) in Hackensack City, Bergen County.
  • It adds Hackensack to New Jersey’s UEZ program, which provides targeted tax and other incentives to spur economic development in designated urban areas.

Key provisions and changes

UEZ framework (amendments to existing law)

  • The bill amends definitions and processes used by the UEZ program, including:
    • Definitions of “enterprise zone,” “qualifying municipality,” “zone development plan,” “UEZ-impacted business district,” and related terms to align with standard UEZ operations.
    • Clarification of qualified businesses, including criteria for eligibility and ongoing obligations (e.g., meeting outstanding tax obligations as a condition of qualification; possible withdrawal for delinquency).
    • Establishment and use of the UEZ assistance fund to finance zone development activities and related improvements.

Hackensack City UEZ designation

  • Hackensack City is designated as a UEZ within Bergen County.
  • The designation process requires Hackensack to submit an application and a zone development plan to the UEZ Authority, after which the Authority would designate the UEZ within 90 days of receiving the application and plan.

Benefits and incentives

  • Qualified businesses within the UEZ (including Hackensack’s new zone) would be eligible for UEZ incentives, notably:
    • Sales tax exemption: eligible transactions within the UEZ would receive a 50% exemption from the regular New Jersey Sales and Use Tax (i.e., half the standard rate) on qualifying sales, subject to certification and program rules.
    • Additional potential benefits under the UEZ program (as delineated in the bill’s definitions) may include grants, loans, tax credits, and other support as approved by the UEZ Authority and reflected in the zone development plan.

Zone designation mechanics and prioritization (existing framework)

  • The bill preserves the overall cap on UEZs (up to 33 zones) and requires that no more than one UEZ be designated in a single municipality.
  • It outlines priority criteria and timing for additional zones, including expedited designation timelines (90 days after application submission) for zones designated under existing priority provisions.
  • Some prior priority criteria are retained for determining where additional zones might be designated, including considerations related to unemployment, population, and county class.

Effective date

  • The act takes effect immediately upon enactment.

Who is affected

  • Hackensack City residents, businesses, and property within the designated UEZ area will be affected.
  • Qualified businesses operating in the Hackensack UEZ stand to receive sales tax exemptions and other potential UEZ-supported benefits.
  • The Hackensack municipal government and the UEZ Authority overseeing the zone development plan and fund administration will play central roles in implementation.

Timeline highlights

  • Upon introduction, the municipality would prepare and submit:
    • UEZ application and zone development plan to the UEZ Authority.
  • The UEZ Authority would designate the Hackensack UEZ within 90 days of receipt of the application and plan.

This summary highlights the bill’s main purpose (designating Hackensack City as a UEZ), the core provisions (design, incentives, and process), affected parties, and key timing.

Compiled from official sources — confirm details with the bill’s official record.

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