SENATE COMMITTEE SUBSTITUTE FOR

SENATE, Nos. 129 and 1025

STATE OF NEW JERSEY

218th LEGISLATURE

ADOPTED FEBRUARY 22, 2018

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)

Senator  ANTHONY R. BUCCO

District 25 (Morris and Somerset)

Co-Sponsored by:

Senators Oroho, Greenstein and Madden

SYNOPSIS

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

CURRENT VERSION OF TEXT

     Substitute as adopted by the Senate Military and Veterans' Affairs Committee.

An Act concerning taxation of military pay and amending N.J.S.54A:6-7 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.    N.J.S.54A:6-7 is amended to read as follows:

     54A:6-7.  Certain pay of members of the armed forces.

     a.    (1)  Compensation paid by the United States for service in the Armed Forces of the United States performed by an individual not domiciled in this State.

(2)  Compensation paid by the United States for service in the Armed Forces of the United States performed by an individual domiciled in this State but stationed outside of this State.

     b.    Amounts received during the taxable year as mustering-out payments with respect to service in the Armed Forces of the United States.

     c.    Amounts received during the taxable year as housing and subsistence allowances by members of the active and reserve components of the Armed Forces of the United States, and by New Jersey National Guard members while on State active duty.

(cf:  P.L.2005, c.63, s.1)

     2.    (New section) 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.

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