LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 5421
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 1, 2025
SUMMARY
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Synopsis: |
Requires development of online tax training for small and micro-businesses. |
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Type of Impact: |
Annual State expenditure increase. |
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Agencies Affected: |
Department of the Treasury. |
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Fiscal Impact |
Annual |
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State Expenditure Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) estimates that developing and implementing an online tax training program for small businesses and micro-businesses will result in an indeterminate State expenditure increase for both initial development and ongoing maintenance costs.
· The OLS is unable to determine the precise fiscal impact of implementing this bill due to uncertainty regarding the scope, complexity, and implementation approach for the required online tax training program.
· The Division of Taxation would likely need to contract with external vendors for web development, content creation, and learning management system implementation, or reassign existing staff resources to develop the program internally.
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Ongoing costs will include regular updates to reflect current tax
law changes, technical maintenance, and periodic content review to ensure
accuracy and effectiveness.
BILL DESCRIPTION
This bill requires the Division of Taxation in the Department of the Treasury to develop an online training program for small businesses and micro-businesses.
The division would be required to develop and maintain an online training program that provides instruction on the process of filing and remitting State taxes, including the corporation business tax, gross income tax, and sales and use tax. The training program must be designed specifically for small businesses and micro-businesses and made available free of charge on the division’s website.
The bill also requires the division to update the training program as necessary to reflect current law, ensuring the content remains accurate and relevant as tax laws and regulations change.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that developing and implementing an online tax training program for small businesses and micro-businesses will result in an indeterminate State expenditure increase for both initial development and ongoing maintenance costs. The OLS is unable to determine the precise fiscal impact of implementing this bill due to uncertainty regarding the scope, complexity, and implementation approach for the required online tax training program.
The creation of a comprehensive online tax training program will require upfront investment, though the precise amount cannot be determined. Costs would vary significantly depending on the scope and sophistication of the program and could include web development and learning management system setup, content creation including instructional materials and videos, user interface design and accessibility compliance, and testing and deployment activities. The division may choose to develop the program internally using existing staff resources, which could reduce direct costs but would represent an opportunity cost as staff time is redirected from other activities.
The bill requires the division to update the training program as necessary to reflect current law, resulting in ongoing maintenance costs that cannot be precisely quantified. These ongoing expenses would include content updates to reflect tax law changes, technical maintenance and hosting costs, and periodic review and enhancement of training materials. The frequency and extent of required updates would depend on the pace of tax law changes and the complexity of the initial program design.
The actual costs will depend on several factors,
including the sophistication of the training platform, the extent of multimedia
content, the frequency of tax law changes requiring updates, and whether the division
contracts with external vendors or utilizes internal resources. The bill does
not specify the scope or complexity of the required training program; therefore,
a precise estimate cannot be provided. While not quantifiable, the program may
result in improved tax compliance among small businesses, potentially leading
to increased State revenue collections and reduced administrative costs
associated with taxpayer assistance and error correction.
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Section: |
Revenue, Finance and Appropriations |
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Analyst: |
Associate Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).