SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 502

STATE OF NEW JERSEY

DATED: MAY 2, 1996

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 502.

      Senate Bill No. 502 excludes from personal gross income taxation money paid to members of district boards of election for duty on any election day, including a general, primary, or special election day.

      According to the sponsor, the purpose of this bill is to assist boards of elections in recruiting people to work on election days by providing an economic incentive.

FISCAL IMPACT

      In a fiscal estimate prepared by the Office of Legislative Services (OLS), OLS estimated 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.