ASSEMBLY, No. 1237

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblyman AZZOLINA and Assemblywoman J. SMITH

 

 

An Act exempting certain income of members of the Armed Forces of the United States from the New Jersey gross income tax and amending N.J.S.54A:6-7.

 

    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. 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.

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

    c. Compensation paid to resident taxpayers by the United States for services performed while on active service in the Armed Forces of the United States and stationed outside the United States.

(cf: N.J.S.54A:6-7)

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill exempts from New Jersey gross income tax the compensation paid to resident taxpayers by the United States for services performed while on active service in the Armed Forces and stationed outside the United States.

    Four states exempt all military pay earned either while stationed here in the U.S. or abroad from their income taxes: Illinois, Michigan, Montana, and Oregon. Three states exempt combat zone pay only from income taxes: Alabama, Pennsylvania, and Virginia. Seven states do not have a personal income tax at all: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Many members of the Armed Forces then change their state of residency just for tax purposes.

    This bill will offer N.J. residents serving our country on the seas and overseas at least this income tax exemption.

 

 

 

Exempts United States military compensation paid to resident taxpayers stationed outside the United States from gross income tax.