LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 788
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: NOVEMBER 25, 2025
SUMMARY
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Synopsis: |
Exempts volunteer first responder stipends from certain payroll and income taxes. |
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Type of Impact: |
Annual State revenue loss to the Property Tax Relief Fund and the State Disability Benefits Fund; potential annual expenditure decreases to the State Disability Benefits Fund. |
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Agencies Affected: |
Department of Labor and Workforce Development; Department of the Treasury. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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Revenue Loss-Property Tax Relief Fund |
Indeterminate |
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Revenue Loss-State Disability Benefits Fund |
Indeterminate |
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Potential Expenditure Reduction-State Disability Benefits Fund |
Indeterminate |
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· The Office of Legislative Services (OLS) notes that the bill will cause an indeterminate annual revenue loss to the State’s Property Tax Relief Fund by excluding any stipends, including clothing allowances, given by a municipality to volunteer first responders from gross income taxation.
· The bill also excludes certain volunteer first responders from temporary disability and family leave insurance taxes, which will cause an indeterminate annual revenue loss to the State Disability Benefits Fund.
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The bill could result in an annual indeterminate expenditure
decrease to the State Disability Benefits Fund by exempting volunteer first
responders from receiving temporary disability benefits and family leave
insurance benefits for which they might otherwise qualify.
BILL DESCRIPTION
The bill excludes from gross income any stipends, including any clothing allowance, provided by a municipality for services performed by a volunteer first responder. The bill also excludes certain volunteer first responders from contributions to the temporary disability and family temporary disability benefits funds and excludes those first responders from being eligible to receive those benefits.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS notes that the bill will cause an indeterminate annual revenue loss to the State’s Property Tax Relief Fund by excluding any stipends, including clothing allowances, given by a municipality to volunteer first responders from gross income taxation. The bill also excludes certain volunteer first responders from temporary disability and family leave insurance taxes, which will cause an indeterminate annual revenue loss to the State Disability Benefits Fund. The magnitude of these revenue losses will depend on the amount of the stipends paid by municipalities to volunteer first responders, which can vary widely, and in the case of the gross income tax revenue loss, the amount of any additional income volunteer first responders may have in a given year.
The bill could result in an annual indeterminate expenditure reduction to the State Disability Benefits Fund by exempting volunteer first responders from receiving temporary disability benefits and family leave insurance benefits for which they might otherwise qualify.
Data from the Federal Emergency Management Administration show that there are approximately 29,600 volunteer firefighters within 634 volunteer departments in New Jersey. The New Jersey Department of Health currently licenses approximately 26,000 EMTs, with approximately 75%, or 19,500, of the licensees assigned to volunteer squads. In total, the OLS estimates that this bill could affect 49,100 volunteer first responders.
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Section: |
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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.).