SENATE SENIOR CITIZENS, VETERANS' AFFAIRS AND AGRICULTURE COMMITTEE

STATEMENT TO

SENATE, No. 943

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 2, 1996

      The Senate Senior Citizens, Veterans' Affairs and Agriculture Committee reports favorably and with committee amendments Senate, No. 943.

      This bill would exclude military pensions (including survivor's benefit payments) 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 in close proximity to U.S. military bases for medical care benefits and Post Exchange privileges, as well as for camaraderie and other intangible benefits.

      These fine citizens have served their country and deserve more than having military bases close around them, leaving them in a quandary as to 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 $306 million dollars of military pensions are paid annually to retirees in New Jersey. These funds contribute to the vitality of the State's economy.

COMMITTEE AMENDMENTS:

      The committee amended the bill to clarify that military survivor's benefit payments shall be excluded from the New Jersey gross income tax.