LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

ASSEMBLY, No. 264

STATE OF NEW JERSEY

DATED: April 11, 1996

      Assembly Bill No.264 (1R) provides for a checkoff for taxpayers to make voluntary contributions of $5, $10, or any other amount of the taxpayer's refund, on their gross income tax returns, or an enclosed voluntary donation if no tax refund is due, to Project DARE. The Drug Abuse Resistance Education (DARE) program fosters a better understanding between children and the law enforcement and education communities. Training topics covered are personal safety, consequences of using drugs, resisting pressure to use drugs, assertiveness, managing stress without taking drugs and decision making. The bill takes effect with taxable years beginning on or after January 1, 1999 when one of the current checkoffs will expire.

      Neither the Division of Taxation nor the Department of Treasury has provided any fiscal information on this bill.

      The Office of Legislative Services (OLS) notes that the implementation of this bill would have no impact on the General Fund. The Division of Taxation may incur some administrative expenses; however, these may be recouped under the bill. The OLS cannot predict the amount of taxpayer contributions to this new checkoff fund, and further notes that the other checkoff funds may receive fewer contributions due to an additional choice vying for the money. At present the law provides for a checkoff for the Endangered Wildlife Conservation Fund, the Children's Trust Fund, the Vietnam Veterans' Memorial Fund, the Breast Cancer Research Fund, and the Battleship New Jersey Memorial Fund.

      The OLS also notes that the checkoff provisions resulted in the following amounts of contributions in tax returns filed in 1995 for tax year 1994: $365,097 to the Endangered Wildlife Conservation fund; $327,378 to the Children's Trust Fund; and $228,545 to the Vietnam Veterans' Memorial Fund. The Breast Cancer Research Fund and the Battleship New Jersey Memorial Fund were signed into law in 1995 and will first appear as checkoffs on the 1996 gross income tax return in 1997.

      This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L. 1980, c.67.