Bill Protecting Families Recover from School Violence Clears Senate

December 13, 2010

Exempts Donated Money From State Taxes

Legislation sponsored by Senator Gerald Cardinale (R-Bergen) that would exempt families, who are victims of school violence, from paying state taxes on money received from a memorial fund or other charitable cause was unanimously passed by the Senate yesterday.

“This money was raised by individuals and given to families to assist them in their time of need, ” Cardinale said. “The state should not turn around and add to their hardship by taxing these funds.”

Virginia Tech’s Hokie Spirit Memorial Fund is an example of the type of benevolent cause this bill is meant to address. In response to the shooting that occurred on April 16, 2007 at Virginia Tech’s campus, the university established the Hokie Spirit Memorial Fund. This charitable fund accepted public donations for distribution to the victims’ families. The State of Virginia and the federal government have enacted legislation to exempt from taxation payments received from the Hokie Spirit Memorial Fund.

Without this legislation, grieving New Jersey families receiving support through the Hokie Spirit Memorial Fund or similar charitable causes may have to pay State gross income tax on the receipt of donations made to help such families recover from tragedy.