A912

An Act providing a personal exemption under the gross income tax for certain members of volunteer fire departments and first aid squads, amending P.L.1983, c.382 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. (New section) a. In addition to the exemptions allowed under N.J.S.54A:3-1 and section 1 of P.L.1976, c.84 (C.54A:3-1.1), a taxpayer who is an active member of a qualified volunteer organization shall be allowed an additional exemption of $300 which may be taken as a deduction from the taxpayer’s New Jersey gross income.

b. Notwithstanding the provisions of subsection a. of this section to the contrary, a taxpayer shall not be allowed more than one additional exemption in any taxable year for that taxpayer’s service as an active member in more than one qualified volunteer organization; provided, however, that if the taxpayer is a married couple filing a joint return and each individual separately is an active member of a qualified volunteer organization, the taxpayer shall be allowed an additional exemption of $600 which may be taken as a deduction from the taxpayer’s New Jersey gross income.

c. Notwithstanding the provisions of subsections a. and b. of this section to the contrary, a taxpayer shall not be allowed an additional exemption in any taxable year unless the taxpayer in filing a return that includes a claim for the exemption submits a certified letter or other form prepared by the primary official in charge of the qualified volunteer organization providing evidence to the satisfaction of the director that the taxpayer or that each married individual of a married couple filing a joint return, if applicable, is an active member of a qualified volunteer organization.

d. For the purposes of this section:

“Active member” means an individual who:

(1) is a member in good standing of a qualified volunteer organization with an active member status;

(2) has been a member in good standing of that organization or any other qualified volunteer organization as defined pursuant to this subsection with an active member status during the taxable year, and in each of the two calendar years immediately preceding the taxable year, for which the additional exemption provided by this section is allowed;

(3) has received no remuneration, other than a clothing allowance or other monetary reimbursement for clothing or its upkeep or both, for serving with that organization or any other qualified volunteer organization defined pursuant to this subsection during the taxable year, and in each of the two calendar years immediately preceding the taxable year, for which the additional exemption provided by this section is allowed; and

(4) has performed 20 percent of active duty with that organization or any other qualified volunteer organization defined pursuant to this subsection during the taxable year, and in each of the two calendar years immediately preceding the taxable year, for which the additional exemption provided by this section is allowed.

“Qualified volunteer organization” means:

(1) a part-paid fire department or a volunteer fire company incorporated under the laws of this State for the purpose of protecting life and property from fire, serving one or more counties or municipalities within this State; and

(2) an emergency first aid, ambulance, or rescue squad or association, composed of volunteers and incorporated or associated as a nonprofit corporation or association under the laws of this State, which provides emergency first aid, ambulance, or rescue services to one or more counties or municipalities within this State.

“20 percent of active duty” means:

(1) the actual recorded attendance and performance of fire services or emergency first aid, ambulance, or rescue services at not less than 20 percent of the regular alarms and not less than 20 percent of the drills for fire services or emergency first aid, ambulance, or rescue services answerable by the members of the qualified volunteer organization during a taxable year; and

(2) the regular attendance at official meetings and the regular performance of any ancillary duties that may be required during a taxable year to be a member in good standing of a qualified volunteer organization with an active member status.

2. Section 4 of P.L.1983, c.382 (C.52:27D-25d) is amended to read as follows:

4. In addition to any other powers and duties invested in it by law or by the commissioner, the division shall:

a. Provide staff support for the work of the fire safety commission and its advisory councils;

b. Administer and enforce the "Uniform Fire Safety Act," established by P.L.1983, c.383 (C.52:27D-192 et al.);

c. Implement training and education programs for the fire service and the public;

d. Administer a fire incident reporting system;

e. Conduct research and master planning for fire safety; [and]

f. In conjunction with the Department of Labor and Workforce Development and Department of Health, conduct investigations of fire incidents in which one or more firefighters suffer death or serious injury and identify those measures which may be required to prevent the future occurrence of deaths and serious injuries under similar circumstances and, in furtherance of any such investigation, the division may issue and enforce subpoenas to compel the testimony of any person who might have knowledge of any relevant matters and the production of any relevant documents. If any investigation conducted under this subsection results in the discovery of any violation of the provisions of the "Uniform Fire Safety Act," P.L.1983, c.383 (C.52:27D-192 et al.), the division, as an enforcing agency, may issue a written notice or order pursuant to that act. Any notice or order issued by the Division of Fire Safety pursuant to this subsection may be enforced under section 19 of P.L.1983, c.383 (C.52:27D-210) as a notice or order of the commissioner ; and

g. Maintain an Internet website that provides information to current and retired volunteer firefighters and volunteer members of emergency first aid, ambulance, or rescue squads within this State regarding the availability of the additional exemption allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), including information regarding any certified letter or other form required to be submitted with the tax return to claim the exemption, and any other programs the State administers for the benefit of volunteers and the organizations in which they serve. The Internet website shall be made available to the public through an electronic link prominently displayed on the division’s homepage.

(cf: P.L.1993, c.218, s.5)

3. This act shall take effect immediately and section 1 shall apply to taxable years beginning on or after January 1 next following the date of enactment.

STATEMENT

This bill allows active members of volunteer fire departments and first aid squads that are incorporated under the laws of this State for the purpose of protecting life and property from fire, or providing emergency first aid, ambulance, or rescue services, to take an additional $300 personal exemption as a deduction from the active member’s New Jersey gross income.

Under the bill, “active member” is defined as an individual who:

-- is a member in good standing of a qualified volunteer fire department or first aid squad with an active member status;

-- has been a member in good standing of that organization or any other qualified volunteer fire department or first aid squad with an active member status during the taxable year, and in each of the two calendar years immediately preceding the taxable year, for which the additional exemption provided by the bill is allowed;

-- has received no remuneration, other than a clothing allowance or other monetary reimbursement for clothing or its upkeep or both, for serving with that organization or any other qualified volunteer fire department or first aid squad during the taxable year, and in each of the two calendar years immediately preceding the taxable year, for which the additional exemption provided by the bill is allowed; and

-- has performed 20 percent of active duty with that organization or any other qualified volunteer fire department or first aid squad during the taxable year, and in each of the two calendar years immediately preceding the taxable year, for which the additional exemption provided by the bill is allowed.

The bill requires the Division of Fire Safety in the Department of Community Affairs to maintain an Internet website that provides information to current and retired volunteer firefighters and volunteer members of emergency first aid, ambulance, or rescue squads within this State regarding the availability of the additional exemption, and any other programs that the State administers for the benefit of volunteers and the organizations in which they serve. The bill requires the Internet website to be made available to the public through an electronic link prominently displayed on the division’s homepage.

The bill is scheduled to take effect immediately upon enactment and provides for the additional exemption to apply to taxable years beginning on or after January 1 next following the date of enactment.