NJ S1318

Requires revenues from retail sales subject to the 50% sales tax exemption in Urban Enterprise Zones (UEZs) to be deposited directly into the Zone Assistance Fund (ZAF) rather than through separate appropriation processes

Appropriates $82.5 million from the General Fund to the enterprise zone assistance fund, with annual caps set between $60 million minimum and $82.5 million maximum (adjusted for inflation)

Excludes medical and recreational cannabis sales from the 50% sales tax exemption available to UEZ retailers, adding cannabis to the existing list of excluded products (motor vehicles, alcohol, cigarettes, manufacturing equipment, and energy)

Establishes a phased reduction of ZAF funding over 10 years, starting at 100% in the first five years and decreasing by 5% annually thereafter, with the remainder going to the General Fund

Allocates $2.5 million annually (adjusted for inflation) from the ZAF for program administration, grants, investments, loans, and other economic development assistance in UEZs