FISCAL NOTE TO

ASSEMBLY, No. 1234

STATE OF NEW JERSEY

JULY 5, 1996

      Assembly Bill No. 1234 of 1996 creates an interest-free period on certain debts for those persons who are called to active military service. Current law protects persons in military service and their dependents from losing their property due to unpaid taxes and assessments. The law allows a court to stay proceedings to enforce payment until six months after the individual leaves military service unless it determines that the person's ability to pay is not materially affected by the military service. The law, however, does require delinquent taxes and assessments, other than taxes on income, owed by persons in military service and their dependents to bear interest at the rate of 6% per annum until paid. This bill amends the existing law to prohibit the accrual of interest on these amounts until six months after termination of military service.

      The Department of Veterans and Military Affairs (DVM) has advised the Office of Legislative Services (OLS) that it does not have the resource data or source information to determine the effect of this bill on State revenues or other agency operating expenditures. The DVM states that it has no responsibility to administer the provisions of the bill.

      The Department of Community Services (DCA) has advised the OLS that the dollar estimate impact of this bill cannot be calculated, but notes that the municipalities most impacted by the enactment of this bill would be those in close proximity to military bases. The DCA further surmises that the greatest impact of this bill would be at a time when a state of war was declared and military reserve units activated.

      The OLS concurs with the DCA's determination.

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