ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 997

with Assembly committee amendments

STATE OF NEW JERSEY

DATED: DECEMBER 11, 1997

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 997 (1R), with committee amendments.

      Assembly Bill No. 977 (1R), as amended, grants exempt organization status under the sales and use tax to National Guard, war veterans' posts or associations and the Marine Corps League, 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, some of these organizations have limited exempt status and are not required to collect the sales and use tax on their ticket sales for fund-raising events.

      As amended, this bill is identical to Senate Bill No. 1733 (2R) as amended and reported by this committee.

FISCAL IMPACT:

      Based on the number of veterans organizations reported by Department of Military and Veterans' Affairs in its comments last session on a similar bill (Assembly Bill No. 841 of 1994) and Office of Legislative Services information of organization spending, it is estimated that the bill would result in a revenue loss of approximately $300,000 per year.

COMMITTEE AMENDMENTS:

      The amendments add the Marine Corps League to the veterans organizations exempted under the bill. The amendments also change the effective date of the bill to the first day of the second month following its enactment to allow time for the Division of Taxation to prepare necessary forms. The amendments also make technical changes to the organization of the exemption statute, and a technical change to the effective date to clarify the bill's effect on a previously enacted, but not yet effective, amendment to the law.