A new law signed by Governor Corzine on July 27, 2009 ("the 2009 Act"), suspends a burdensome fee which the state had instituted last year on non-residential construction.  Equally as important, it directs that any such fees paid since July 17, 2008 be refunded, if a proper refund request is made. 

The new statute is the New Jersey Economic Stimulus Act of 2009 (Senate Bill No. 2299), enacted in response to what the Legislature termed "a fiscal and economic crises more severe than any experienced since the Great Depression."  The 2009 Act modifies numerous existing laws dealing with economic development, taxation, higher education, redevelopment and affordable housing.

A major feature of the 2009 Act is its temporary suspension of the 2.5 percent fee on the value of non-residential construction established in 2008 by a law commonly known as A-500 or the Roberts Act.  That fee, which took effect on July 17, 2008, was applicable statewide and was intended to raise funds for affordable housing.  One year later, the Legislature has found that, however well-intentioned, the 2.5 percent fee discourages business from locating in the state and impedes both residential and non-residential development.  Accordingly, the 2009 Act temporarily suspends the 2.5 percent fee subject to the following conditions:

1. The 2.5 percent fee shall not apply to non-residential projects which received either preliminary or final site plan approval prior to July 1, 2010, provided that a construction permit is issued for the project by December 31, 2012. 
2. A developer who paid the 2.5 percent statewide non-residential construction fee prior to July 27, 2009 is entitled to a refund of the monies paid. 
3. A developer entitled to a refund must submit a claim in writing to the entity to which the fee was paid.  That entity could have been either the municipality or the state, depending on the municipality's Council on Affordable Housing status.
4. The refund claim must be filed within 120 days from the effective date of the Act.  Accordingly, requests for refunds must be filed with the appropriate entity (municipality or state) prior to November 26, 2009. 
5. The refund is to be paid by the municipality or the state within 30 days of the filing of the refund claim.