The New Jersey Business & Industry Association today praised the Assembly for voting to suspend a burdensome fee on business development until the end of this year.
Assembly members overwhelmingly approved A-1907 (Burzichelli, Bramnick), which would put a moratorium on a statewide fee equal to 2.5 percent of the cost of business development. In most cases, businesses that already paid the fee could be reimbursed.
“When it comes to private-sector investment, the importance of suspending this fee cannot be overstated,” said NJBIA First Vice President David Brogan. “The business development fee is a tremendous disincentive for businesses that may want to expand in or relocate to New Jersey. Leaving this fee in place puts New Jersey at a competitive disadvantage to neighboring states such as New York and Pennsylvania.
“Lawmakers in the Assembly deserve the thanks of the business community as well as those who count on an expanding private sector for their livelihood,” Brogan said. “Enacting this moratorium can only help the state’s economic development efforts.”
The bill would extend a moratorium on the 2.5 percent construction fee until the end of this year, and make it retroactive to July 1, 2013, when the previous moratorium expired. Developers who paid the fee would be eligible for reimbursement if the money paid was not already allocated for or spent on an affordable housing project by the municipality.
The fee was created in 2008, but lawmakers placed the first moratorium on the fee the following year. That moratorium was extended in an effort to help stimulate the economy.