FISCAL NOTE TO

SENATE, No. 2176

STATE OF NEW JERSEY

DATED: NOVEMBER 19, 1997

      Senate Bill No. 2176 of 1997 extends to disabled veteran tenant shareholders and their surviving spouses residing in a cooperative or mutual housing corporation, which is their legal residence in this State, the property tax exemption currently afforded to disabled veterans and their surviving spouses who own and reside in a single-family home, a portion of a multi-family home, a unit in a condominium or an apartment in a horizontal property regime. Article VIII, Section 1, paragraph 3 of the New Jersey Constitution authorizes this tax exemption.

      The Division of Taxation in the Department of the Treasury has stated that State revenues will not be affected by this bill because the State does not reimburse municipalities currently or under this bill for the property tax exemptions granted to veterans with 100% disability sustained in combat.

      The division has observed further that the bill would cause a shift in the property tax burden in municipalities in which the extended exemptions are granted, but that it is not possible to estimate the shift because the municipalities in which eligible individuals reside, the number of individuals eligible for the exemption in each municipality, the assessed value of the properties in which they reside, and the tax rate of the municipalities in question are not known.

      The Office of Legislative Services concurs with the conclusions reached by the Division of Taxation.

This fiscal note has been prepared pursuant to P.L.1980, c.67.