ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2536

STATE OF NEW JERSEY

DATED: JANUARY 9, 1997

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 2536.

      Assembly Bill No. 2536 establishes an annual State reimbursement payment to taxing districts for administrative costs of the veterans’ and senior and disabled property tax deduction programs. Enactment of P.L.1995, c.259 made changes to the property tax deduction programs and caused problems at the local level in processing claims. The purpose of this bill is to correct these problems.

      Specifically, the bill requires taxing districts to be reimbursed by the State for 102 percent of the amount of the deductions instead of 100 percent currently reimbursed.

FISCAL IMPACT:

      The State cost at 100 percent, based on Division of Taxation data, is estimated by the Office of Legislative Services 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 cost of administering the programs, is estimated to cost the State $1.1 million in 1997.