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A 2883

Allows gross income tax deduction for union dues paid to labor organizations.

2024-2025 Regular Session Introduced by Reginald Atkins and 12 co-sponsors

Allows New Jersey gross income tax deduction for union dues paid to labor organizations, with required verification by the Tax Director.

Reported and Referred to Assembly State and Local Government Committee
#incometax #labor
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Bill Summary · A 2883

Summary: Assembly Bill A-2883 (Union Dues Deduction)

Overview

  • Bill Number: A-2883
  • Title: Allows gross income tax deduction for union dues paid to labor organizations
  • Status: Introduced January 9, 2024; Prefiled for 2024-2025; Reported favorably by Assembly Labor Committee (June 6, 2024); Referred to Assembly State and Local Government Committee
  • Related bill: S-1066 (companion)

Purpose and Intent

A-2883 would create a new deduction in the New Jersey gross income tax for individuals who pay union dues to a labor organization. The bill defines and clarifies the scope of "union dues" and "labor organization" and establishes a verification process required to claim the deduction. The objective is to reduce the taxpayer’s gross income for tax purposes by the amount of dues paid.

Key Provisions

  • Deduction permitido: Taxpayers may deduct from gross income any union dues paid to a labor organization during the taxable year.
  • Verification requirement: To claim the deduction, taxpayers must provide verification of the union dues paid during the taxable year, in a form and manner prescribed by the Director of the Division of Taxation.
  • Definitions:
    • Labor organization: Any organization (or agency/employee representation committee or plan) in which employees participate and that exists to deal with employers on grievances, labor disputes, wages, hours, or working conditions.
    • Union dues: The total amount of dues, fees, assessments, or other charges or expenses required of members of or public employees represented by a labor organization.
  • Administration:
    • The Director of the Division of Taxation administers the verification process.
    • The bill’s language applies to the tax year for which the deduction is claimed, per the verification requirement.
  • Effective date and retroactivity:
    • The act “shall take effect immediately” and apply to taxable years beginning on or after January 1 following enactment.

Who Is Affected

  • Individual taxpayers who pay dues to labor organizations (as defined) for which union dues are required.
  • Employers and labor organizations, insofar as their member dues are the basis for deductions claimed by members (indirectly affected via tax treatment).

Procedural and Timeline Details

  • Introduced: January 9, 2024
  • Reported favorably: June 6, 2024 (Assembly Labor Committee)
  • Current committee stage: Referred to Assembly State and Local Government Committee
  • Companion legislation: Senate version S-1066

Practical Impact

  • Taxpayers could reduce their New Jersey gross income by the amount of union dues paid, subject to verification.
  • The policy shift would likely affect state revenue by reducing taxable income deductions for households that pay substantial union dues.
  • Because the deduction requires verification, taxpayers must maintain appropriate documentation and file as prescribed by the Director.

This summary presents the substantive elements of A-2883 as filed and reported, focusing on what the bill would change, who it would impact, and how it would operate.

Compiled from official sources — confirm details with the bill’s official record.

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