ASSEMBLY, No. 229

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen GARCIA and COTTRELL

An Act excluding certain income of retired members of the Armed Forces of the United States from gross income subject to the gross income tax 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 military pension payments paid to individuals by the United States with respect to service in the Armed Forces of the United States.

    2. This act shall take effect immediately and apply to taxable years commencing on and after January 1, 1994.

STATEMENT

    This bill would exclude military pensions from the New Jersey gross income tax. There are approximately 23,000 military retirees living in New Jersey. They made a decision to retire here and be in close proximity to U.S. military bases for their well-earned medical care benefits, Post Exchange privileges, camaraderie, etc.

    These fine citizens have served their country and deserve more than having military bases close around them, leaving them in a quandry of what to do next.

    With the enactment of this bill, New Jersey's treatment of military persons would be the same as the treatment of those persons in the states of New York and Pennsylvania. Approximately $287 million dollars of military pensions are paid annually to retirees in New Jersey. These funds contribute to the vitality of the State's economy.

Excludes United States military pensions from the gross income tax.