TRENTON, NJ — A legislative proposal, introduced on Thursday, seeks to exempt basic pay for active duty military service from gross income taxation in New Jersey. Assembly members Gerry Scharfenberger and Victoria A. Flynn, representing District 13 in Monmouth, are the sponsors of this bill, identified as Assembly No. 4198.
The bill, currently as introduced, would amend Title 54A of the New Jersey Statutes to exclude from gross income the basic pay received by residents serving in the Armed Forces of the United States or the National Guard. This includes those on active duty or active duty for training.
The act is designed to take effect immediately and would be applicable to taxable income years starting from January 1 following its enactment. Presently, New Jersey law already excludes from state gross income taxation common military allowances like food and housing, as well as combat zone compensation exempt under federal law. This new measure aims to further reduce the tax burden on military personnel by including basic pay, a significant component of their overall compensation.