Bill Text: NJ A4198 | 2024-2025 | Regular Session | Introduced
Bill Title: Excludes basic pay received for active duty military service from gross income taxation.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced) 2024-05-02 - Introduced, Referred to Assembly Military and Veterans' Affairs Committee [A4198 Detail]
Download: New_Jersey-2024-A4198-Introduced.html
Sponsored by:
Assemblyman GERRY SCHARFENBERGER
District 13 (Monmouth)
Assemblywoman VICTORIA A. FLYNN
District 13 (Monmouth)
SYNOPSIS
Excludes basic pay received for active duty military service from gross income taxation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the gross income taxation of military compensation, and supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Gross income shall not include amounts received as basic pay by residents who are members of the Armed Forces of the United States or the National Guard for service in active duty or active duty for training, as those terms are used in N.J.S.38A:1-1.
2. This act shall take effect immediately and apply to taxable income years beginning on or after January 1 next following the date of enactment.
STATEMENT
This bill excludes basic pay received by residents who are members of the Armed Forces of the United States or the National Guard for service in active duty or active duty for training from New Jersey gross income taxation.
Under current law, the State excludes the most common military allowances, including food and housing allowances, from gross taxable income. Additionally, any combat zone compensation received by members of the Armed Forces of the United States that is excluded from federal taxable income pursuant to section 112 of the federal Internal Revenue Code of 1986 is also excluded from New Jersey gross taxable income.
This bill expands the scope of military compensation that is excluded from New Jersey gross taxable income to also include basic pay received for service in active duty or active duty for training. Basic pay is the main component of military pay and is received by all members of the Armed Forces. This pay typically accounts for the largest portion of a member's salary.
