LEGISLATIVE FISCAL ESTIMATE TO


[First Reprint]

ASSEMBLY, No. 997


STATE OF NEW JERSEY

 

DATED: FEBRUARY 13, 1997

 

 

      Assembly Bill No. 997 (1R) of 1996 grants exempt organization status under the "Sales and Use Tax Act" to National Guard and war veterans' posts or associations and the auxiliary units of these organizations. These organizations must meet the definition for such entities established under regulations to be promulgated by the Director of the Division of Taxation. At present, these organizations have limited exempt status and are not subject to sales and use tax for certain admission charges when all of the proceeds inure to the benefit of the organization.

      Neither the Division of Taxation nor the Department of Military and Veterans' Affairs has provided any fiscal information on this bill. However, the department did comment last session on a similar bill, (A-841 of 1994). The tax loss was estimated to be between $188,000 and $190,000 annually based on 1,255 organizations spending approximately $2,500. The Office of Legislative Services (OLS) has verified the number of organizations with departmental sources. The OLS believes, after conversations with these sources and military organization personnel, that an annual average expenditure of approximately $4,000 on taxable items or services purchased by this type of organization is reasonable and would result in an estimated revenue loss of approximately $300,000 per year.

 

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.