[Passed Both Houses]

[Second Reprint]

ASSEMBLY, No. 229

STATE OF NEW JERSEY

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen GARCIA, COTTRELL, Dalton, Malone, Blee, LeFevre, Gusciora, Assemblywoman Weinberg, Assemblyman DeSopo, Assemblywoman Allen, Assemblymen Holzapfel, Wolfe, Senators Singer, Haines, Sinagra, Bubba, Zane, Casey, Ciesla and Kosco

An Act excluding ¹[certain income of retired members of the Armed Forces of the United States] military pension payments and military survivor's benefit payments^{1 2}for certain persons² 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 ¹or military survivor's benefit payments¹ paid to individuals by the United States with respect to service in the Armed Forces of the United States ²by a person who is 62 years of age or older or who, by virtue of disability, is or would be eligible to receive payments under the Federal Social Security Act at any point during the taxable year for which the military pension payment or the military survivor's benefit payments would otherwise be included as income².

    ²2. Notwithstanding any law to the contrary, pension payments otherwise excludable as income pursuant to this act shall be considered income for the purpose of determining income eligibility for any State benefit or program if the payments were considered income for such purposes prior to enactment.²

    ²[2.] 3.² This act shall take effect immediately and apply to taxable years commencing on or after January 1, ¹[1996] 1998¹.

Excludes United States military pensions and survivor's benefits from the gross income tax.