By Vincent Solomeno
Originally posted here.
I’m running to represent Monmouth County’s Thirteenth Legislative District in the State Senate. It’s time for the Legislature to create suburban enterprise zones to stimulate revitalization by cutting the sales tax in half and promoting private and public investment in our district’s Route 35 and 36 corridors.
Now, more than ever, our elected officials should be focused on creating jobs and improving our economy. Recently, Lieutenant Governor Sheila Oliver (in her capacity as acting governor) signed legislation that reforms and restores funding to New Jersey’s Urban Enterprise Zone Program.
Established in 1983, these enterprise zones were intended to create jobs and economic development in New Jersey’s urban centers. Today, they are known mostly for halving the state’s sales tax in parts of 37 Garden State towns. The zones also provide one time corporate tax credits and allow tax-free purchases for businesses on capital equipment, facility expansion and upgrades. Here in Monmouth County, there are zones designated in Asbury Park and Long Branch.
In terms of cost, a 2019 assessment of urban enterprise zones commissioned by the Department of Community Affairs found that the state absorbs $88.6 million annually in reduced sales tax revenue. The recent law allocates $42.5 million in assistance funding. When considered in the context of a $46.3 billion state budget, enterprise zones are a worthwhile investment of taxpayer dollars.
There are 6,700 businesses already benefiting from the advantages provided by urban enterprise zones. The same assessment found their average annual impact on economic output was $246.5 million and the average annual net new earnings impact was $510.1 million. The program supports 6,266 jobs statewide.
Let’s do the same for the suburbs. Unlike other areas of Monmouth County, economic growth in the Thirteenth District is stalled. Revitalizing businesses – and attracting new ones – along the Route 35 and 36 corridors is critical to securing long-term prosperity. Before the COVID-19 pandemic, food service, retail and manufacturing businesses were already struggling. Over seventeen months later, we find ourselves pressed to take urgent action. Suburban enterprise zones that mirror their time tested urban area counterparts can jumpstart our local economy.
We already have the ingredients for success. The Thirteenth District is home to traditional downtowns and dense residential neighborhoods set beside the environmental treasures of the Raritan Bay coastline, Atlantic Ocean, and the Navesink River. Our proximity to New York City, innovation economy, and high education rates foster the conditions for us to compete in a global marketplace.
The state does so much to help businesses in urban areas, and through property tax deductions, farms in rural areas. My proposed suburban enterprise zones completes the equation by creating jobs and improving the business climate in Monmouth County.
Government works best when it provides opportunity, encourages responsibility, and rewards those who work hard. We can encourage investment and support suburban small businesses through reduced sales taxes, tax free purchases on capital equipment and facility expansions, as well as other subsidies and tax credits granted to urban enterprise zones. Despite our current political climate, I am convinced that it is possible to work together to tackle this and other pressing public policy problems.
Let’s innovate. If I am elected to serve as State Senator, I am determined to work with Democratic and Republican colleagues alike to improve our economy, create jobs, and strengthen our middle class. That starts by building support for suburban enterprise zones.
Sincerely,
Vincent Solomeno
Vincent Solomeno is running for the State Senate in the Thirteenth Legislative District. The Thirteenth District includes Aberdeen, Atlantic Highlands, Fair Haven, Hazlet, Highlands, Holmdel, Keansburg, Keyport, Little Silver, Marlboro, Middletown, Monmouth Beach, Oceanport, Sea Bright, Rumson, and Union Beach.
