LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

SENATE, No. 552

STATE OF NEW JERSEY

DATED: JUNE 13, 1996

      Senate Bill No. 552 (1R) of 1996 provides for a $50 annual bonus to be paid to a war veteran or the surviving spouse of such a veteran residing in a continuing care retirement community, commencing with tax year 1996. A bonus would be paid by the State Treasurer to each eligible claimant from funds appropriated by the Legislature for that purpose from the general fund of the State. An eligible claimant would apply for a bonus when filing a State income tax return or, if the claimant is not required to file a return or requests an extension to file a return, on such other form as the Director of the Division of Taxation shall prescribe. If a claimant is eligible to receive a property tax rebate, the bonus would be paid at the time the rebate is paid. In all other cases, the bonus would be paid as soon as practicable after receipt and review of an application. A veteran's bonus would be in addition to a property tax rebate or any other benefit to which the claimant may be entitled.

      In the fiscal note prepared for the identical bill last session and based on a legislative fiscal estimate of a prior session, the Office of Legislative Services (OLS) estimated an annual cost to the State of approximately $11,250. This estimate was based on a survey done in 1990 that found approximately five percent of the 4,500 residents in continuing care retirement communities were veterans or a surviving spouse of a veteran. According to the Department of Community Affairs the number of units has increased to currently 4,900 units. As a result of this growth in qualifying facilities and a large concentration of World War II veterans being in the age-group which would utilize this type of facility, the OLS estimates the number of veterans may be between 245 to 490 for a total annual cost in the range of $12,200 to $24,400.

      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.