Bill Text: NJ A3485 | 2024-2025 | Regular Session | Introduced
Bill Title: Eliminates requirement under veterans' gross income tax exemption that taxpayer serve in active duty status or federal active duty status to qualify for exemption.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced) 2024-02-05 - Introduced, Referred to Assembly Military and Veterans' Affairs Committee [A3485 Detail]
Download: New_Jersey-2024-A3485-Introduced.html
Sponsored by:
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
SYNOPSIS
Eliminates requirement under veterans' gross income tax exemption that taxpayer serve in active duty status or federal active duty status to qualify for exemption.
CURRENT VERSION OF TEXT
As introduced.
An Act eliminating the active duty requirements from the veterans' gross income tax exemption, amending N.J.S.54A:3-1.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.54A:3-1 is amended to read as follows:
54A:3-1. Personal exemptions and deductions. Each taxpayer shall be allowed personal exemptions and deductions against his gross income as follows:
(a) Taxpayer. Each taxpayer shall be allowed a personal exemption of $1,000.00 which may be taken as a deduction from his New Jersey gross income.
(b) Additional exemptions. In addition to the personal exemptions allowed in (a), the following additional personal exemptions shall be allowed as a deduction from gross income:
1. For the taxpayer's spouse, or domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A-3), who does not file separately - $1,000.00.
2. For each dependent who qualifies as a dependent of the taxpayer during the taxable year for federal income tax purposes - $1,500.00.
3. Taxpayer 65 years of age or over at the close of the taxable year - $1,000.00.
4. Taxpayer's spouse 65 years of age or over at the close of the taxable year - $1,000.00.
5. Blind or disabled taxpayer - $1,000.00.
6. Blind or disabled spouse - $1,000.00.
7. Taxpayer who is a veteran honorably discharged or released under honorable circumstances from [active duty in] the Armed Forces of the United States, a reserve component thereof, or the National Guard of New Jersey [in a federal active duty status, as those terms are used in N.J.S.38A:1-1] - $6,000.
(c) Special Rule. The personal exemptions allowed under this section shall be limited to that percentage which the total number of months within a taxpayer's taxable year under this act bears to 12. For this purpose 15 days or more shall constitute a month.
(d) (Deleted by amendment, P.L.1993, c.178).
(e) Nonresidents. For taxable years to which a certification pursuant to section 3 of P.L.1993, c.320 (C.54A:2-1.2) applies, a nonresident taxpayer shall be allowed the same deduction for personal exemptions as a resident taxpayer. However, if (1) the nonresident taxpayer's gross income which is subject to tax under this act is exceeded by (2) the gross income which the nonresident taxpayer would be required to report under this act if the taxpayer were a resident by more than $100.00, the taxpayer's deduction for personal exemptions shall be limited by the percentage which (1) is to (2).
(cf: P.L.2019, c.146.)
2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1 next following the date of enactment.
STATEMENT
This bill eliminates the requirement that a veteran taxpayer serve in active duty status or federal active duty status in order to qualify for the $6,000 veterans' gross income tax exemption.
Under current law, a member of the Armed Forces of the United States, or a reserve component thereof, who has been honorably discharged or released under honorable circumstances, is required to have served in active duty status in order to qualify for the veterans' gross income tax exemption, pursuant to N.J.S.A.54A:3-1(b)(7). Likewise, a member of the National Guard of New Jersey, who has been honorably discharged or released under honorable circumstances, is required to have served in federal active duty status in order to qualify for the same. This tax credit may be claimed by the veteran taxpayer for each tax year in which the veteran so qualifies.
This bill changes the law to remove the respective active duty requirements. Accordingly, pursuant to the bill, a veteran of the Armed Forces of the United States, a reserve component thereof, or a member of the National Guard of New Jersey, who has been honorably discharged or released under honorable circumstances, may claim the veterans' gross income tax exemption, irrespective of whether he or she served in active duty or federal active duty status.
