New Jersey Lawmakers Advance Bill to Add Burlington City to Urban Enterprise Zone Program
Why It Matters
New Jersey’s Urban Enterprise Zone program could soon expand to one of the state’s oldest municipalities, offering Burlington City businesses the ability to charge a reduced sales tax rate as an incentive for economic development and job growth. The designation, if enacted, would provide local officials with additional tools to address persistent poverty and attract private investment to a community that has struggled to revitalize its aging urban core.
What Happened
Legislation to include Burlington City in New Jersey’s Urban Enterprise Zone program cleared a key Senate committee by a unanimous 5-0 vote earlier this month. The bill is sponsored by Committee Chair Sen. Troy Singleton, a Democrat representing Burlington County, who also serves as the measure’s primary backer.
Burlington City, situated along the Delaware River in South Jersey roughly three miles from Philadelphia, would become eligible for a range of state economic development incentives under the program. Most notably, businesses operating within the designated zone would be permitted to charge half the standard state sales tax rate of 6.625%, reducing it to approximately 3.3125%.
City Council President Dawn Bergner-Thompson noted that Burlington City is approaching the 350th anniversary of its 1677 founding, calling the timing fitting for pursuing the designation. “We envision the Urban Enterprise Zone designation, if passed, as an additional tool in our tool belt to assist with economic development and redevelopment,” Bergner-Thompson said.
Seigha Omuso, president of the Main Street Burlington nonprofit advocacy group, told the Senate Community and Urban Affairs Committee that the program would directly benefit local merchants and spur broader investment. “For our small business owners, this means more customers walking through their doors,” Omuso said, adding that the designation would also unlock funding for infrastructure improvements and storefront upgrades.
By the Numbers
- 6.625%: New Jersey’s standard state sales tax rate
- 3.3125%: The reduced rate businesses within a designated Urban Enterprise Zone may charge
- ~10,000: Burlington City’s approximate population
- 17%: Share of Burlington City residents living in poverty, cited in the legislation
- 32: Existing Urban Enterprise Zones across 37 communities statewide
- 90 days: The window officials would have to submit a zone development plan to the Urban Enterprise Zone Authority if the bill becomes law
Background and Challenges
Founded in 1677, Burlington City once served as the capital of the Colonial province of West Jersey and is one of New Jersey’s most historically significant communities. The city’s riverfront location along the Delaware, however, means much of its buildable land lies within a designated flood zone. The municipality is also bisected by Route 130 and New Jersey Transit’s River Line light rail corridor, creating infrastructure complications that officials say have complicated development efforts.
The Urban Enterprise Zone program itself has evolved considerably since its 1983 launch. A 2021 reform law overhauled the program’s structure and earmarked additional funding for participating communities. Current members include Camden, Newark, Trenton, Asbury Park, and Plainfield, among others.
Zoom Out
Burlington City’s bid reflects a broader pattern of aging mid-size municipalities seeking targeted tax relief and state investment tools to compete with suburban and exurban commercial corridors. States across the Northeast have increasingly turned to enterprise zone models and reduced tax environments to stabilize urban retail and small-business sectors, particularly in communities where poverty rates and aging infrastructure have slowed private development. For more on economic and policy developments affecting New Jersey communities, see our coverage of shifting political dynamics in congressional districts across the region.
What’s Next
The legislation must still receive approval from the full New Jersey Senate and Assembly before reaching the desk of Gov. Mikie Sherrill. If signed into law, Burlington City officials would have 90 days to submit a formal zone development plan to the Urban Enterprise Zone Authority for review. No timeline for floor votes in either chamber has been publicly announced. Advocates and city officials are expected to continue building support as the measure advances through the legislative process. Residents and local business owners tracking economic development tools may also find relevant context in coverage of federal legislative actions affecting business liability and commercial investment.