LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

SENATE, No. 256

STATE OF NEW JERSEY

DATED: May 24, 1996

      Senate Bill No. 256 (1R) of 1996 establishes the Senior Citizen Property Tax Relief Fund and provides for a tax refund checkoff to appear on State gross income tax returns permitting taxpayers to make voluntary contributions to the fund. The bill also permits contributions by taxpayers who are not due refunds through the enclosure of a donation when the tax return is filed. Contributions may be made in amounts of $2, $5, $10 or "other amount." The bill provides that all amounts deposited in this fund, in excess of administrative costs incurred by the Division of Taxation to implement this bill, shall be used solely for property tax relief for senior citizens.

      Neither the Division of Taxation nor the Department of the Treasury has provided any fiscal information on this bill.

      The Office of Legislative Services (OLS) notes that the implementation of this bill would have no direct impact on the General Fund. The Division of Taxation may incur some administrative expenses; however, these may be recouped under the bill. The OLS cannot predict the amount of taxpayer contributions to this new checkoff fund, and further notes that the other checkoff funds may receive fewer contributions due to an additional choice vying for the money. At present the law provides for a checkoff for the Endangered Wildlife Conservation Fund, the Children's Trust Fund, the Vietnam Veterans' Memorial Fund, the Breast Cancer Research Fund, and the Battleship New Jersey Memorial Fund.

      The OLS also notes that the checkoff provisions resulted in the following amounts of contributions in tax returns filed in 1995 for tax year 1994: $381,375 to the Endangered Wildlife Conservation Fund, $339,731 to the Children's Trust Fund; and $243,754 to the Vietnam Veterans' Memorial Fund. The Breast Cancer Research Fund and Battleship New Jersey Memorial Fund checkoffs will appear for the first time on the 1996 gross income tax return.

      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.