ASSEMBLY STATE GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1261

STATE OF NEW JERSEY

DATED: FEBRUARY 5, 1996

      The Assembly State Government Committee reports favorably Assembly, No. 1261.

      This bill amends the provision of the "New Jersey Gross Income Tax Act" governing the amount that a taxpayer may elect to contribute from the person's State income tax liability to the "Gubernatorial Elections Fund", which is the fund from which moneys are paid to support public financing for qualified primary and general election candidates for the office of Governor. The bill would replace the current single contribution option of $1 with three alternative levels of contribution, $1, $3, and $5.

      The bill also provides for future adjustments in those checkoff options to reflect increases in the cost of election campaigning. The amount of the increase would be calculated for the third of the three alternative checkoff amounts and, subject to rounding, applied uniformly to all three amounts. This calculation would be performed quadrennially on the same schedule as applies to the calculation of the inflation adjustments currently applicable to other amounts under the gubernatorial campaign finance statute.

      The bill would take effect on the January 1 following enactment and be applicable to the taxes due for the year of enactment.

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