New Jersey Assembly Bill A2703

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Excludes military compensation of military personnel serving outside of this State from gross income tax.

Impact

The implementation of A2703 would directly impact the tax liabilities of New Jersey residents who are members of the armed forces. By exempting military compensation from gross income tax, the bill is expected to provide significant financial relief to service members, allowing them to retain more of their earnings while serving their country. This aligns with the growing recognition of the need to support military personnel and their families, particularly in terms of economic stability.

Summary

Assembly Bill A2703 aims to amend existing New Jersey tax laws by excluding certain military compensation from gross income tax. Specifically, the bill provides an exemption for compensation received by military personnel who are domiciled in New Jersey but who are serving outside the state. This move is designed to alleviate the financial burden on servicemen and women as they fulfill their duties away from home. By amending N.J.S.54A:6-7, the bill seeks to recognize the unique circumstances faced by military families in terms of tax obligations.

Contention

While the bill appears to have substantial support among military advocacy groups and lawmakers who prioritize veteran issues, there could be points of contention regarding the potential fiscal implications for state revenue. Some may argue that the bill could set a precedent for further tax exemptions that might affect the state's budget. Additionally, there could be debates on whether the bill adequately addresses all service members, particularly those from diverse backgrounds or with differing service commitments, potentially raising questions about equity in tax treatment.