Excludes military compensation of military personnel serving outside of this State from gross income tax.
Impact
The implementation of this bill would amend New Jersey's statutes, specifically N.J.S.54A:6-7, which currently governs the taxation of military personnel's compensation. If enacted, this bill would create an exemption that recognizes the unique circumstances of military service, ultimately benefiting those who sacrifice for their country while ensuring they are not unduly taxed on their service income earned away from home.
Summary
Senate Bill S2686, introduced in New Jersey, proposes an exclusion for certain military compensation from the gross income tax for servicemen and women who are domiciled in New Jersey but are serving their duty outside the state. This legislative effort aims to provide financial relief to military personnel by ensuring that their earned income during service outside of New Jersey is not subject to state income taxation.
Contention
Discussions surrounding S2686 may involve debates over tax revenue impacts for the state versus the fairness of taxing active-duty military personnel serving in different locations. Advocates for the bill argue that the exemption is a deserved recognition of military service, while critics might express concerns regarding the potential loss of revenue for state funding sources that support public services crucial for all residents.