Bill Text: NJ S129 | 2018-2019 | Regular Session | Introduced


Bill Title: Excludes from gross income taxation military compensation for personnel serving outside of State and combat zone compensation.*

Spectrum: Bipartisan Bill

Status: (Engrossed) 2019-06-10 - Reported and Referred to Assembly Appropriations Committee [S129 Detail]

Download: New_Jersey-2018-S129-Introduced.html

SENATE, No. 129

STATE OF NEW JERSEY

218th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION

 


 

Sponsored by:

Senator  KRISTIN M. CORRADO

District 40 (Bergen, Essex, Morris and Passaic)

Senator  SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

Senator  JEFF VAN DREW

District 1 (Atlantic, Cape May and Cumberland)

 

Co-Sponsored by:

Senators Cruz-Perez, Bateman, Holzapfel and Madden

 

 

 

 

SYNOPSIS

     Excludes Armed Services combat zone pay from gross income taxation.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act excluding United States Armed Forces combat zone pay from gross income taxation, 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 combat zone compensation 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 (26 U.S.C. s.112).

 

     2.    This act shall take effect immediately and apply to taxable years beginning on or after January 1 next following the date of enactment.

 

 

STATEMENT

 

     This bill excludes military pay for service in a combat zone or for hospitalization as the result of injury while serving in a combat zone from taxable gross income under the New Jersey gross income tax.

     The bill uses federal definitions of combat zone pay to exclude from New Jersey taxation the same pay that is excluded from federal income taxation.  A combat zone is any area the President of the United States designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order.    

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