LEGISLATIVE FISCAL ESTIMATE TO

ASSEMBLY, No. 2397

STATE OF NEW JERSEY

DATED: JANUARY 24, 1997

      Assembly Bill No. 2397 of 1996 provides for a sales tax exemption for component parts of shoes purchased for shoe repairs. This bill would create an equitable position in the statutes with clothing components. Purchasers of shoe component parts, such as heels and soles, have been paying sales tax on this purchase. Purchasers of clothing components, such as fabric, thread, buttons and zippers, do not pay sales tax on their purchases.

      Neither the Department of Treasury nor the Division of Taxation has offered any fiscal information on this bill. The Office of Legislative Services (OLS) indicates that without any specific data available, it is not possible to determine the potential loss of revenue to the State. The OLS estimates that the loss, however, is likely to be minimal.

      This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

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