SENATE, No. 1409

STATE OF NEW JERSEY

INTRODUCED JULY 25, 1996

By Senator SINGER

An Act concerning certain contributions made through the gross income tax return, amending P.L.1981, c.170, P.L.1985, c.197, P.L.1994, c.139, P.L.1995, c.26 and P.L.1995, c.299, and supplementing Title 54A of the New Jersey Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 1 of P.L.1981, c.170 (C.54A:9-25.2) is amended to read as follows:

    1. There is hereby established in the Department of the Treasury a special fund to be known as the "Endangered and Nongame Species of Wildlife Conservation Fund." Each taxpayer shall have the opportunity to indicate on [his] the taxpayer's New Jersey gross income tax return that a portion of [his] the taxpayer's tax refund or an enclosed contribution be deposited in such fund. [The Director of the Division of Taxation shall provide the taxpayer with the opportunity to indicate his preference on the tax return in substantially the following way:

    Endangered and Nongame Species of Wildlife Conservation Fund: I wish to contribute $5 □, $10 □, other amount $......□, to this fund.] The State Treasurer shall deposit into the fund all moneys designated for the fund pursuant to this supplementary act.

(cf: P.L.1991, c.287, s.1)

    2. Section 2 of P.L.1985, c.197 (C.54A:9-25.4) is amended to read as follows:

    2. a. There is established in the Department of the Treasury a special fund to be known as the "Children's Trust Fund."

    b. Each taxpayer shall have the opportunity to indicate on [his] the taxpayer's New Jersey gross income tax return that a portion of [his] the taxpayer's tax refund or an enclosed contribution be deposited in the special fund. [The Director of the Division of Taxation in the Department of the Treasury shall provide each taxpayer with the opportunity to indicate his preference on the tax return in substantially the following manner: Children's Trust Fund:

    I wish to contribute $5 □, $10 □, other amount $......□, to this fund.]

    The State Treasurer shall deposit into the fund all moneys designated for the fund pursuant to this act.

(cf: P.L.1991, c.287, s.1)

    3. Section 1 of P.L.1994, c.139 (C.54A:9-25.6) is amended to read as follows:

    1. Each taxpayer shall have the opportunity to indicate on the

taxpayer's New Jersey gross income tax return for any taxable year beginning on or after January 1, 1994 and before December 31, 1998 that a portion of the taxpayer's tax refund or an enclosed contribution shall be deposited in the Vietnam Veterans' Memorial Fund established pursuant to section 4 of P.L.1985, c.494 (C.52:18A-208). [The Director of the Division of Taxation in the Department of the Treasury shall provide each taxpayer with the opportunity to indicate the taxpayer's preference on the tax return to contribute to the fund in substantially the following way:

    "Vietnam Veterans' Memorial Fund: I wish to contribute $5 □, $10 □, other amount $........□ to this fund."]

    Any costs incurred by the Division of Taxation for collection or administration attributable to this act may be deducted from receipts collected pursuant to this act, as determined by the Director of the Division of Budget and Accounting.

    The State Treasurer shall deposit net contributions collected pursuant to this act into the Vietnam Veterans' Memorial Fund.

(cf: P.L.1994, c.139, s.1)

    4. Section 1 of P.L.1995, c.26 (C.54A:9-25.7) is amended to read as follows:

    1. a. There is established in the Department of the Treasury a special fund to be known as the "New Jersey Breast Cancer Research Fund."

    b. Each taxpayer shall have the opportunity to indicate on the taxpayer's New Jersey gross income tax return that a portion of the taxpayer's tax refund or an enclosed contribution be deposited in the special fund. [The Director of the Division of Taxation in the Department of the Treasury shall provide each taxpayer with the opportunity to indicate the taxpayer's preference on the tax return in substantially the following way:

    New Jersey Breast Cancer Research Fund: I wish to contribute $5 □, $10 □, other amount $.......□ to this fund.]

    Any costs incurred by the Division of Taxation for collection or administration attributable to this act may be deducted from receipts collected pursuant to this act, as determined by the Director of the Division of Budget and Accounting.

    The State Treasurer shall deposit net contributions collected pursuant to this act into the New Jersey Breast Cancer Research Fund. (cf: P.L.1995, c.26, s.1)

    5. Section 1 of P.L.1995, c.299 (C.54A:9-25.9) is amended to read as follows:

    1. Each taxpayer shall have the opportunity to indicate on the taxpayer's New Jersey gross income tax return that a portion of the taxpayer's tax refund or an enclosed contribution be deposited in the Battleship New Jersey Memorial Fund established pursuant to this act. [The Director of the Division of Taxation shall provide each taxpayer with the opportunity to indicate the taxpayer's preference on the tax return to contribute to the fund in substantially the following way:

    "Battleship New Jersey Memorial Fund: I wish to contribute $5 □, $10 □, other amount $......□ to this fund."]

(cf: P.L.1995, c.299, s.1)

    6. (New section) The Director of the Division of Taxation shall provide each taxpayer with the opportunity to indicate the taxpayer's preference on the tax return that a portion of the taxpayer's tax refund or an enclosed contribution be contributed to one or more of:

    a. the "Endangered and Nongame Species of Wildlife Conservation Fund" established pursuant to section 1 of P.L.1981, c.170 (C.54A:9-25.2);

    b. the "Children's Trust Fund" established pursuant to section 2 of P.L.1985, c.197 (C.54A:9-25.4);

    c. the Vietnam Veterans' Memorial Fund established pursuant to section 4 of P.L.1985, c.494 (C.52:18A-208);

    d. the "New Jersey Breast Cancer Research Fund" established pursuant to section 1 of P.L.1995, c.26 (C.54A:9-25.7);

    e. the Battleship New Jersey Memorial Fund established pursuant to section 2 of P.L.1995, c.299 (C.54A:9-25.10); or

    f. any other fund that the taxpayer has, by statute, the opportunity to contribute to on the taxpayer's New Jersey gross income tax return.     The taxpayer shall indicate the taxpayer's preference on the tax return by numerical designation coding or codings. The director shall determine the form and manner of the indication, and the presentation and explanation of the taxpayer's contribution options in the return instructions.

    7. This act shall take effect immediately and apply to taxable years beginning after enactment.

STATEMENT

    This bill changes the format of the contributions that taxpayers may make through their gross income tax returns to resolve a problem of limited space on the tax return.

    Currently, New Jersey gross income tax taxpayers may choose to make contributions of their tax refunds, or to make contributions in excess of their refunds, to any of three State managed dedicated funds. By law, a taxpayer's choice to make a contribution must be in the form of a "check-off" on the gross income tax return. Two more check-offs for State managed dedicated funds have already been approved for addition to the return, and crowding on the return has reached the point that the addition of other equally worthwhile special dedicated funds pending before the Legislature may need to be delayed, simply because the check-offs will not fit on the tax return.

    This bill amends the current check-off contribution acts to remove requirements about the form of the contribution choices, but does not affect the rights of taxpayers to make contributions to the funds. The bill replaces the check-offs on the return form with numerical designations on the return to indicate the wishes of a taxpayer. The numerical designation system is currently used by New Jersey public employers to record employee choices to make charitable contributions by payroll deduction, and a similar system could be used on the tax return and its instruction book.

    Taxpayers will have the right to designate contributions on their 1997 gross income tax returns to the Endangered and Nongame Species of Wildlife Conservation Fund, the Children's Trust Fund, the Vietnam Veterans' Memorial Fund, the New Jersey Breast Cancer Research Fund and the Battleship New Jersey Memorial Fund. This bill will simplify the tax returns to ease the administration of contributions to existing funds and to permit future expansion to contributions programs.

Concerns contributions to special funds made through the gross income tax return.