LEGISLATIVE FISCAL ESTIMATE TO

ASSEMBLY, No. 2536

STATE OF NEW JERSEY

DATED: JANUARY 24, 1997

      Assembly Bill No. 2536 of 1996 establishes an annual State reimbursement payment to taxing districts for veterans’ and senior and disabled property tax deduction program administration costs.

      Specifically, the bill requires taxing districts to be reimbursed by the State for 102 percent of the amount of the deductions they grant, instead of 100 percent, which is the amount they are now reimbursed.

      The 100 percent State cost based on Division of Taxation data is estimated by the Office of Legislative Services (OLS) at $53.2 million in 1997, which represents a $0.9 million reduction from the State cost of $54.1 million in 1996. The additional two percent to compensate municipalities for the costs of administering the programs is estimated to cost the State $1.1 million in 1997.

      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.