New Jersey Senate Bill S3433

New Jersey 2022-2023 Regular Session

• Introduced: 1/10/23
• Refer: 1/10/23

Caption

Excludes bonuses for reenlistment or voluntary extension of enlistment in armed forces from gross income.

Impact

If enacted, S3433 would amend Title 54A of the New Jersey Statutes, effectively altering the state tax landscape for service members. By allowing such military bonuses to be excluded from income calculations, the bill seeks to mitigate the financial burden on military families. The expected outcome is an increase in disposable income for these service members, ultimately acknowledging their commitment and loyalty.

Summary

Senate Bill S3433 is a legislative proposal introduced in the New Jersey Senate aimed at providing tax relief for members of the armed forces. The bill specifically excludes bonuses received for reenlistment or voluntary extension of enlistment from taxable gross income under the New Jersey gross income tax. This initiative is part of broader efforts to support and recognize the contributions of military personnel who serve their country, often facing significant sacrifices.

Contention

While there is strong support for S3433 among legislators recognizing the sacrifices made by military personnel, potential contention could arise regarding the implications for state revenue. Critics may express concerns about the financial impact this tax exemption might have on the state's budget and the equitable treatment of military versus civilian taxpayers. Nonetheless, proponents argue that the measure constitutes a necessary acknowledgment of the unique circumstances confronted by those in military service.