Enterprise Zone Law and Legal Definition
Some cities have developed enterprise zones to stimulate the continual development, growth and expansion of private enterprise in certain economically depressed areas in such cities that need particular attention. The intent is to create new jobs, stimulate economic activity and attract private sector investment rather than government subsidy to improve the quality of life of citizens. Laws, which vary by state and locality, encourage new economic activity in these depressed areas by means of reduced taxes and the removal of unnecessary governmental barriers to the production and earning of wages and profits and the creation of economic growth.
Laws may authorize cities to create by ordinance one or more specific areas as enterprise zones which the governing body finds are areas of pervasive poverty, unemployment, and general economic distress. Some of the measures authorized to encourage private investment and promote the creation of jobs within such zones include, but are not limited to, the following:
- A reduction of municipal tax rates, municipal license rates and/or municipal fees for governmental services within such zones.
- An increase in the level or efficiency of public services within the zone including provision for the providing of such services by nongovernment entities.
- Reduction, removal, simplification, or other modification of regulatory requirements applying within such zones.
- Involvement of private entities, organizations, neighborhood associations, and community groups with such zones, including the provision by such entities of jobs, job training, and technical, financial, and other assistance to employers, employees, and residents of such zones.
- Other services or modification of requirements as may be necessary or desirable to qualify for financial assistance to such cities or private entities within such zones under any act of the Congress of the United States.