The Division of Taxation estimates the credit would have a five percent processing impact and would need one temporary tax season employee for every 180,000 returns impacted and one Tax Processing Technician I for every 20,000 individual income tax errors generated from this proposal. The proposal would require modifications to the income tax system. Modifications to the income tax return and schedules would be completed with existing resources. State Data Center charges would increase due to the additional storage and fields to be captured. Office of Administration officials defer to the State Tax Commission on revenue estimates.
TAX assumes a three percent growth rate.
No direct fiscal impact to small businesses would be expected as a result of this proposal. This proposal would authorize a state income tax credit for personal property taxes paid on motor vehicles used primarily for non-business purposes. This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.