ASSEMBLY APPROPRIATIONS COMMITTEE

 

STATEMENT TO

 

ASSEMBLY CONCURRENT RESOLUTION No. 1

 

STATE OF NEW JERSEY

 

DATED: JUNE 20, 1996

 

      The Assembly Appropriations` Committee reports favorably Assembly Concurrent Resolution Bill No. 1.

      Assembly Concurrent Resolution Bill No. 1 amends the State Constitution to require the enactment of a cigarette tax increase dedicated to funding the construction costs of public school districts' school facilities that are required to meet a State-mandated thorough and efficient public school system. The cigarette tax increase of $0.0125 per cigarette equals $0.25 per 20-pack of cigarettes, and increases the current tax of $0.40 per pack to $0.65 per pack. The revenue from this tax increase would only be appropriated for the purpose of paying or financing that part of public school districts' costs of school facilities improvements needed to comply with the State Constitution's requirements of a thorough and efficient system of free public schools. The revenue from the tax increase could only be spent to increase total State spending for school district facilities above the level appropriated by the State in the fiscal year in which this amendment is approved. The current level of State aid for school district facilities is $70 million, and this tax rate increase would provide an additional $130 million in cigarette tax revenues in State fiscal year 1997. The cigarette tax rate increase is pending in a companion bill, Assembly Bill No. 2157 of 1996, that will take effect on January 1, 1997, but only if this State Constitutional amendment is first approved by the voters.

 

FISCAL IMPACT:

 

      This bill, if approved by the voters, will require enactment of a cigarette tax increase of $0.25 per 20-pack of cigarettes, but does not itself increase cigarette taxes.