LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

SENATE, No. 502

STATE OF NEW JERSEY

DATED: April 11, 1996

      Senate Bill No. 502 (1R) of 1996 would exclude from the New Jersey gross income tax the per diem compensation paid to election day workers as employees of district boards of election. The per diem compensation would be for services rendered on the day of an election. According to the sponsor, excluding this income would help many boards of elections in getting people to work election day duties.

      Neither the Division of Taxation nor the Department of Treasury has provided any fiscal information on this bill. The Office of Legislative Services (OLS), however, estimates a minimal revenue loss to the State in the range of approximately $125,000 to $166,000 in gross income tax. This was based on 6,019 election districts in the State, using four persons per district per election with the exception of using two persons per district per school election. Also included in this estimate is a calculation for approximately 1,000 districts involved in non-partisan municipal elections, usually in June. Using the per diem compensation of $75 and a weighted average marginal tax rate of 2.6 percent for the year 1995 results in a loss, at the lower end of the range, of $125,000 of gross income tax revenue. Under P.L.1995, c.193, counties may elect to increase the per diem pay to $100. This option if exercised could increase the State's revenue loss to approximately $166,000.

      The 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.