Enhances certain reporting and disclosure concerning State tax expenditures.
Impact
The proposed bill mandates that recipients of development subsidies report their supplier diversity goals and the actual amounts spent on diverse suppliers, including women-owned, minority-owned, small, and veteran-owned businesses. This reporting will contribute to the state’s annual Unified Economic Development Budget Report, which reflects the fiscal implications of tax expenditures. Furthermore, the bill requires a detailed account of the benefits derived from each tax expenditure, including an analysis of the effectiveness of these expenditures in achieving their set goals, thereby enabling better evaluation of state investment in economic development initiatives.
Summary
Bill S1383 seeks to enhance transparency and accountability concerning state tax expenditures related to development subsidies. It modifies existing definitions within the law to provide clearer guidance on what constitutes a state tax expenditure, specifically detailing revenue losses associated with provisions that deviate from the standard tax structure. Under this bill, the definition of 'development subsidy' is amended to raise the reporting threshold from $25,000 to $100,000, thereby increasing the financial threshold for impact reporting on development subsidies under the Development Subsidy Job Goals Accountability Act.
Contention
Critics of the bill may raise concerns about the practicality of increased reporting requirements and the potential administrative burden placed on recipients of development subsidies. Additionally, by altering the threshold for reporting, there could be apprehensions regarding transparency, as smaller entities may be excluded from the accountability framework of state tax expenditures. Advocates, however, assert that these changes will strengthen oversight and ensure that tax incentives are providing significant returns for job creation and economic growth, thereby addressing the public's interest in fiscal responsibility.
Establishes New Jersey Revenue Advisory Board; modifies executive State budget presentation; updates State revenue and expenditure reporting and disclosure requirements; and requires annual State financial stress testing.
Establishes New Jersey Revenue Advisory Board; modifies executive State budget presentation; updates State revenue and expenditure reporting and disclosure requirements; and requires annual State financial stress testing.
Establishes New Jersey Revenue Advisory Board; modifies executive State budget presentation; updates State revenue and expenditure reporting and disclosure requirements; and requires annual State financial stress testing.