New Jersey’s General Assembly in late June passed legislation that would make it easier for entrepreneurs to operate businesses from their homes regardless of local zoning laws.
The “Home Business Jobs Creation Act” still needs to make it through the state Senate and be signed by Gov. Phil Murphy before home-based businesses are permitted to operate without appearing before their local zoning boards for permission.
But the potential relief for small businesses has a big opponent — the New Jersey State League of Municipalities, the association representing the state’s borough, township and city governments.
“This bill creates a loophole that allows certain home-based businesses, currently illegal under a municipality’s zoning laws, to become legal and protected without municipal approvals,” the League says in a position statement, contending that the proposed law would weaken zoning laws that were established to guide planning in communities.
Under current law, a home-based business needs to apply to the local zoning board and go through a hearing process before the board members decide whether to grant a variance to make an exception for the business to operate from a residence.
Small businesses often are praised as the backbone of the nation’s economy. Many entrepreneurs have a goal to be their own boss and, with universally available internet technology, working from a home office has become easier than ever.
Just over half of all businesses operating in Burlington and Camden counties in 2022 had fewer than five employees, according to the U.S. Census Bureau County Business Patterns report.
Nationwide, 29.31 million sole proprietor firms filed tax returns for 2021, according to the Internal Revenue Service Statistics of Income.
The Assembly bill (A2623) classifies some home businesses as permitted accessory uses for the residences.
“In these economically challenging times, the need for homes businesses can be expected to increase,” according to the bill.
The bill states that zoning ordinances, enacted in the 1960s and 1970s, were “based on good intentions and focused on the protection of residential neighborhoods from the negative effects of industry.” However, at the time three out of four workers did so outside of their homes, it notes.
Today, many “home businesses are operating in violation of outmoded local ordinances,” the bill states. Professional businesses, such as doctors, lawyers and accountants, are permitted but local ordinances prohibit other for-profit firms.
The legislation calls for new approaches to zoning to support the operations and growth of small businesses. “Such growth cannot occur unless the Legislature ensures that home businesses” are permitted as accessory uses, the legislation states.
The bill also limits the activities of the home-based businesses, including the volume of business visitors to the residence. Signs, lighting and parking are prohibited. The home-based businesses also could not disrupt the neighborhood with vibration, fumes or odors.
It also would not supersede the by-laws or deed restrictions in a “common-interest ownership community,” such as condominiums.
The bill does not address and apparently would not impact company employees who work from home.
The Assembly bill passed 65-3 on June 28 with the “no” votes from Rosaura Bagolie (D-Livingston), Brian Bergen (R-Denville) and Brian E. Rumpf (R-Forked River).
