ASSEMBLY COMMERCE AND MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 997

with committee amendments

STATE OF NEW JERSEY

DATED: DECEMBER 9, 1996

      The Assembly Commerce and Military and Veterans' Affairs Committee reports favorably and with committee amendments Assembly, No. 997.

      This bill 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, which meet the definition for such entities established pursuant to regulations to be promulgated by the Director of the Division of Taxation in the Department of the Treasury. At present, these organizations have limited exempt status and are not subject to the sales and use tax for certain admission charges when all of the proceeds inure to the benefit of the organization.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.

COMMITTEE AMENDMENT

      The committee amended the bill to clarify that the exemption conferred by the bill applies to auxiliary units of National Guard organizations as well as to auxiliary units of war veterans organizations.