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S2759 FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 2759
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: FEBRUARY 27,
2026
SUMMARY
Synopsis:
Exempts volunteer first responder stipends from certain
payroll and income taxes.
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.
Agencies Affected:
Department of Labor and Workforce Development; Department
of the Treasury.
Office of
Legislative Services Estimate
Fiscal Impact
Annual
�
Revenue
Loss-Property Tax Relief Fund
Indeterminate
Revenue Loss-State
Disability Benefits Fund
Indeterminate
Potential
Expenditure Reduction-State Disability Benefits Fund
Indeterminate
�
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.
�
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.
Section:
Commerce, Labor and Industry
Analyst:
John Gaudioso
Associate
Fiscal Analyst
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.).