State of new jersey




Yüklə 16.3 Kb.
tarix11.03.2016
ölçüsü16.3 Kb.



LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 1235

STATE OF NEW JERSEY

212th LEGISLATURE
DATED: MARCH 16, 2006

SUMMARY


Synopsis:

Authorizes property tax deferment for deployed military personnel.




Type of Impact:

Increased cost to General Fund.




Agencies Affected:

Division of Taxation in Department of the Treasury; municipalities.





Office of Legislative Services Estimate

Fiscal Impact

Year 1

Year 2

Year 3

State Cost

Indeterminate annual cost of reimbursing municipalities for deferred taxes.

State Revenue

Indeterminate tax refund payments received from municipal tax collectors.






  • The Office of Legislative Services (OLS) is unable to determine the cost of this bill because OLS does not have any accurate information concerning the number of residents now or in the future, that are or will be serving in a branch of the United States Armed Forces that would qualify for the proposed deferment of property tax payments on their primary residence while on active duty in time of war. The OLS also does not have any way of determining the amount of property taxes on property owned by these military personnel, now or in the future.

  • This bill would allow New Jersey residents enlisted in any branch of the United States Armed Forces to qualify for the deferment of any property tax amount that becomes due during the period of deployment for active duty in time of war.

  • This bill requires that the State annually pay each municipality the total amount deferred, in the same manner as is currently done for the veteran's property tax deduction pursuant to section 5 of P.L.1997, c.30 (C.54:4-8.24). The tax collector is required to reimburse the State upon receipt of the payment deferred from each qualified taxpayer.

BILL DESCRIPTION
Senate Bill No. 1235 of 2006 would allow New Jersey residents enlisted in any branch of the United States Armed Forces to qualify for the deferment of any property tax amount that becomes due during the period of deployment for active duty in time of war.

A resident qualified for the deferment, or a person acting on behalf of the resident, would file an application for deferment with the tax collector of the municipality in which the property is located, and submit the documentation required to ascertain that the applicant qualifies for the deferment. The deferment would commence on the tax due date, and end 90 days after the end of deployment. No interest would be charged when the amount owed is paid on or before the first day following the 90-day grace period, but interest would accrue as of the date of the original due date on any unpaid amount after the first day following the grace period.

In order to avoid an unfunded mandate, this bill requires that the State annually pay each municipality the total amount deferred, in the same manner as is currently done for the veteran's property tax deduction pursuant to section 5 of P.L.1997, c.30 (C.54:4-8.24). The tax collector is required to reimburse the State upon receipt of the payment deferred from each qualified taxpayer.

FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES


    The OLS is unable to determine the cost of this bill because OLS does not have any accurate information concerning the number of residents now or in the future, that are or will be serving in a branch of the United States Armed Forces who would qualify for the proposed deferment of property tax payments on their primary residence while on active duty in time of war. The OLS also does not have any way of determining the amount of property taxes on property owned by these military personnel, now or in the future.

    The OLS notes however, that between 1994 and 2004 the average assessed home value increased by 39.28 percent, from an assessed value in 1994 of $131,007 to $182,463 in 2004, and the average residential property tax paid on these properties increased by 53.74 percent, from $3,586 in 1994 to $5,513 in 2004. The OLS also observes that home values and property taxes are likely to increase into the future, thereby increasing the annual cost to the State to pay for the future deferred property taxes as proposed under the bill. The OLS also observes that according to the US Census Bureau, Statistical Abstract of the United States 2006, the State of New Jersey had 6,818 residents on active military duty as of September 30, 2003. Assuming that the 6,818 active duty military personnel own homes at the 2004 New Jersey homeownership rate of 68.8 percent, then it could be estimated that approximately 4,691 (6,818 X 68.8 percent = 4,691) of these individuals would be potential homeowners; however, OLS cannot arrive at an estimate of how many of these estimated active duty homeowners are actually serving in a war time capacity, as defined under the bill, or determine the amount of property taxes that would be due and owing on each property owned by these military personnel.





Section:

Local Government

Analyst:

Pedro Carrasquilo

Associate Fiscal Analyst

Approved:

David J. Rosen

Legislative Budget and Finance Officer

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













Office of Legislative Services

State House Annex

P.O. Box 068

Trenton, New Jersey 08625




Legislative Budget and Finance Office

Phone (609) 292-8030

Fax (609) 777-2442

www.njleg.state.nj.us





Verilənlər bazası müəlliflik hüququ ilə müdafiə olunur ©azrefs.org 2016
rəhbərliyinə müraciət

    Ana səhifə