LEGISLATIVE FISCAL ESTIMATE TO
[First Reprint]
SENATE, No. 943
STATE OF NEW JERSEY
DATED: JUNE 13, 1996
Senate Bill No.943 (1R) of 1996 would exclude military pensions, including survivor's benefit payments from the New Jersey gross income tax. The exclusion would apply to tax years beginning on or after January 1, 1996.
No information was provided by the Division of Taxation or the Department of Treasury on the fiscal impact of this bill. However, on the fiscal note for a similar bill last session (Senate, No. 815), the division estimated a loss of tax revenue to the State of approximately $7.5 million in fiscal year (FY) 1995; $7.4 million in FY96; and $7.7 million in FY97. That estimate was based on 20,413 military retirees in the State having an average pension of $14,364. The Office of Legislative Services concurred with the estimated tax loss.
The information used by the division last session is consistent with data which appears in the U.S. Department of Defense biennial publication DEFENSE ALMANAC- 94. The Office of Legislative Services concurs with the estimated tax loss.
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.