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Bill

A 5073

Provides gross income tax exclusion for military compensation paid to State residents for out-of-State military service.

2024-2025 Regular Session Introduced by Rosy Bagolie and 6 co-sponsors

New Jersey bill excludes military compensation from state income tax for residents serving in the military outside the state.

Introduced in the Assembly, Referred to Assembly Military and Veterans' Affairs Committee
#incometax #veterans
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Bill Summary · A 5073

Legislative bill overview

Bill A 5073 would allow New Jersey residents serving in the military outside the state to exclude their military compensation from New Jersey's gross income tax. This targeted tax benefit applies specifically to out-of-state military service, creating a tax advantage for affected service members and their families.

Why is this important

Military families often face financial strain due to deployment and relocation expenses. This tax exclusion could provide meaningful relief to New Jersey residents stationed elsewhere, potentially improving retention of talent and supporting military families' financial stability. It also reflects a policy choice about how states incentivize and support military service.

Potential points of contention

  • Revenue impact: The bill would reduce state tax revenue; the fiscal analysis will determine whether the cost is acceptable given competing budget priorities
  • Scope and fairness: Questions about whether this benefit should apply to all military branches/ranks equally, and how it compares to tax treatment of other out-of-state employment or out-of-state residents serving in New Jersey
  • Administration and verification: Determining which compensation qualifies and preventing abuse would require clear definitions and potential coordination with military records

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

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