FISCAL NOTE TO

ASSEMBLY, No. 1737

STATE OF NEW JERSEY

DATED: OCTOBER 9, 1997

      Assembly Bill No. 1737 of 1996 establishes a seven-member task force to be known as the "Task Force to Study the Computer-Assisted Mass Appraisal of Real Property." The task force is charged with the responsibility of studying the process and applications of computer-assisted mass appraisal of real property by counties and municipalities, including but not limited to all existing information on and applications of computer-assisted mass appraisal currently in use in the State of New Jersey, and to study the property tax appeal process to determine whether the current practice, which places the burden of proof of an incorrect assessment on the property taxpayer, is fair and equitable. The task force is required to recommend standards and methods for computer-assisted mass appraisal systems for use by municipal tax assessors and county boards of taxation, and appropriate legislation to effectuate its findings and determinations with regard to these matters. The Director of the Division of Taxation in the Department of the Treasury would appoint a member of the division's staff to serve as the staff aide to the task force. The bill appropriates $100,000 from the General Fund to the task force to fund the study required by the bill.

      The Division of Taxation in the Department of the Treasury (Treasury) has advised the Office of Legislative Services (OLS) that the $100,000 from the General Fund would be a one-time expenditure, and any administrative costs to the Division of Taxation will be absorbed in the current operating budget. The Treasury advises the OLS that the $100,000 appropriation appears to be inadequate to pay for the staffing, printing, supplies, travel, telephone, computer equipment, facilities and other costs that would be incurred over the 18 month period of the study.

      The OLS notes that the bill specifically provides that the Director of the Division of Taxation is to appoint a member of the division's staff to serve as the staff aide to the task force. The assignment of an existing employee to serve the needs of the task force should not result in a cost to the commission. Also, if an existing employee is used, presumably such a person, under the supervision of the director, could redeploy existing division resources, as appropriate, to provide the support required by the task force. Similarly, if division facilities, or other public facilities, are used for the commission's meetings, there should be no cost chargeable against the appropriation.

Therefore, OLS does not anticipate that the $100,000 appropriation would be insufficient to provide adequate support for the task force itself.

      The OLS also notes that, according to Division of Taxation sources, several counties and municipalities currently are using different forms of computer-assisted appraisal of real property. The task force could avail itself of the experiences of these counties and municipalities in the realm of computer-assisted appraisal, and therefore the task force's efforts may be less costly than anticipated.  

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