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Bill

Bill

A 2703

Excludes military compensation of military personnel serving outside of this State from gross income tax.

2024-2025 Regular Session Introduced by Brian Bergen and 2 co-sponsors

New Jersey bill exempts active-duty military personnel from state income tax on compensation earned while serving outside the state.

Introduced in the Assembly, Referred to Assembly Military and Veterans' Affairs Committee
#incometax #veterans
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Bill Summary · A 2703

Legislative bill overview

Bill A 2703 would exempt military compensation earned by New Jersey residents who are actively serving outside the state from state income tax. This applies to military personnel stationed or deployed internationally or in other states while remaining New Jersey tax residents.

Why is this important

Military families often face complex tax situations when stationed away from home, potentially owing taxes to multiple states. This proposal aims to reduce the financial burden on active-duty service members and their families by preventing double taxation and recognizing the sacrifice of out-of-state military service.

Potential points of contention

  • Revenue impact: The state would forgo income tax from these military earners; fiscal impact depends on how many eligible service members exist and their compensation levels
  • Defining eligibility: Questions remain about what constitutes "serving outside the state" (only active duty deployments? reservists? contractors?) and how residency is determined
  • Fairness concerns: Critics may argue this creates a tax preference for one occupational group, raising questions about whether similar exemptions should apply to other professions requiring out-of-state work
  • Interstate coordination: Potential complications if multiple states adopt similar exemptions or conflicts with federal military tax provisions already in place

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

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