SENATE, No. 659

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 5, 1996

 

 

By Senators SINAGRA and LYNCH

 

 

An Act concerning the exclusion from gross income of interest and gain earned on certain obligations, amending N.J.S.54A:6-14.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. N.J.S.54A:6-14 is amended to read as follows:

    54A:6-14. Interest on certain obligations. Gross income shall not include interest on obligations (1) issued by or on behalf of this State or any county, municipality, school or other district, agency, authority, commission, instrumentality, public corporation (including one created or existing pursuant to agreement or compact with this or any other state), body corporate and politic or political subdivision of this State, [or] (2) those obligations which are statutorily free from State or local taxation under any other act of this State or under the laws of the United States, or (3) those obligations issued and unconditionally guaranteed by the State of Israel, in which the assets of a State managed pension or annuity may be invested pursuant to P.L.1995, c.175 (C.52:18A-89.8).

(cf: N.J.S.54A:6-14)

 

    2. This act shall take effect immediately and apply to taxable years beginning on or after its effective date.

 

 

STATEMENT

 

    This bill allows for any interest and gain earned on obligations issued by the State of Israel to be excluded from gross income under the gross income tax. P.L.1995, chapter 175 allows the State Division of Investment to invest and reinvest assets of State pension funds in obligations issued and unconditionally guaranteed by the State of Israel. This legislation will allow the interest and gain earned on these


types of obligations to be excluded from taxation for individual taxpayers.

 

 

 

Excludes interest and gain earned on obligations issued by the State of Israel from gross income taxation.