SENATE SENIOR CITIZENS, VETERANS' AFFAIRS AND AGRICULTURE COMMITTEE
STATEMENT TO
SENATE, No. 1733
with committee amendments
STATE OF NEW JERSEY
DATED: JANUARY 14, 1997
The Senate Senior Citizens, Veterans' Affairs and Agriculture Committee reports favorably and with committee amendments Senate, No. 1733.
This bill grants exempt organization status under the "Sales and Use Tax Act" to National Guard and war veterans' posts or associations, and the auxiliary units of these organizations, which meet the definition for such entities established pursuant to regulations to be promulgated by the Director of the Division of Taxation in the Department of the Treasury and the earnings of which do not inure to the benefit of any private stockholder and individual. At present, these organizations have limited exempt status and are not subject to the sales and use tax for certain admission charges when all of the proceeds inure to the benefit of the organization.
COMMITTEE AMENDMENTS
The committee amended the bill to clarify that in order to be eligible for exemption from the sales and use tax, no part of the earnings of a post, organization, association, or auxiliary unit or society may inure to the benefit of any private stockholder or individual.