As state residents face a 1 percent sales tax increase, shoppers in the Urban Enterprise Zone program - which allows businesses in certain urban areas, including many in Hudson County, to charge a reduced sales tax - will also see a hike.

Taxes in UEZ areas will go from 3 percent to 3.5 percent now that the statewide sales tax has increased to 7 percent from 6 percent, UEZ officials said last week.

Roberta Farber, the Jersey City UEZ director, said she welcomes the increase.
"I can't say exactly how this will affect UEZ, but I am hoping that it will increase the amount of services and projects that we will provide to Jersey City," she said.

The UEZ program generates funds that are used for capital improvements, such as streetscaping and other projects, in the areas they are located.

In Jersey City, a third of retail businesses are in UEZ areas and are prepared for the increase.
Juilio Bobet, manager of Furniture Forever on Central Avenue in the Heights, said he sometimes spares customers and pays sales tax with his own money.

"Customers complain so you do what you have to do to make a living and keep them happy."
Bobet said he expects the higher sales tax to lead to less spending.
Farber and some other store owners disagree.

"I don't think it's such a big deal," said Eddie Torres, a manager at Central Wireless, also in the Heights. "Three-and-a-half percent is a lot better than paying seven."