ASSEMBLY COMMERCE AND MILITARY AND VETERANS' AFFAIRS COMMITTEE
STATEMENT TO
ASSEMBLY, No. 229
STATE OF NEW JERSEY
DATED: JANUARY 29, 1996
The Assembly Commerce and Military and Veterans' Affairs Committee reports favorably Assembly Bill No. 229.
This bill would exclude military pensions from the New Jersey gross income tax. There are approximately 23,000 recipients of military pensions residing in New Jersey. Many of these retirees settled in New Jersey in order to take advantage of the medical care, Post Exchange privileges and camaraderie offered by the military facilities located here. Unfortunately, access to these well-deserved benefits has been jeopardized by federal base reductions. The bill would recognize the service and sacrifice of these fine citizens and help to mitigate some of the effects of federal cut-backs.
With the enactment of this bill, New Jersey would accord recipients of military pensions the same courtesy such indivdiuals currently enjoy in eleven other states, including New York and Pennsylvania. (Twenty additional states provide some exemptions or incentives for recipients of military pensions; nine states have no state income tax.) New Jersey residents currently receive approximately $287 million in military pensions each year. These funds contribute to the vitality of the State's economy.
This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.