SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 943

with Senate committee amendments

STATE OF NEW JERSEY

DATED: NOVEMBER 17, 1997

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 943 (1R) with amendments.

      As amended, Senate Bill No. 943 (1R) excludes military pensions and military survivor's benefits from the New Jersey gross income tax.     Under this bill, New Jersey would accord recipients of military pensions the same exclusion these recipients 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.)

      As amended and reported, this bill is identical to Assembly Bill No. 229 (1R) (Garcia/Cottrell).

COMMITTEE AMENDMENTS

      The committee amended the bill to change the effective date so that the bill would apply to taxable years beginning on or after January 1, 1998.

FISCAL IMPACT

      According to the Office of Legislative Services, the enactment of this bill would result in a gross income tax revenue loss of approximately $5 to $7 million annually.