Resolution Regarding Tax Exemption of Military Retirement Pay Passes the Assembly

Milam, Land and Murphy Resolution Urges Congress to Exempt Military Retirement Pay from Federal Income Taxation

(TRENTON) – A measure sponsored by Assembly Democrats Matthew Milam, Bruce Land and Carol Murphy urging Congress to pass legislation exempting military retirement pay from federal income taxation passed the full Assembly today, 71-0-0.

Military retirement pay generally applies to those who served for more than 20 years on active duty, and differs from disability benefits or veteran pensions. Since each state differs in its stance on the taxation of retirement pay, the resolution calls for legislation that would standardize eligibility throughout the country.

If approved by the Senate, the resolution (ACR-221) would be sent to each member of New Jersey’s Congressional delegation to advocate for the requested tax exemption on behalf of former military members.

“Former military members have unique challenges upon their reentry into the civilian world, which can include dealing with post-traumatic stress disorder and struggling to find affordable housing. This resolution aims to encourage legislation that would help make their lives easier,” said Murphy (D-Burlington),

“These individuals willingly accepted the difficulties of a military position, such as being separated from their families for extended periods of time and receiving less lucrative pay than they might have elsewhere. The proposed legislation in our resolution would help honor the choice they made,” said Milam (D-Atlantic, Cape May and Cumberland).

“As a veteran, this resolution is particularly meaningful to me,” explained Land (D- Atlantic, Cape May and Cumberland).  “I have the utmost respect for the dedication and sacrifice of our soldiers. Anyone willing to put their lives on the line for decades on behalf of this country deserves the benefit of income tax exemption upon retirement.”

The resolution will now head to the Senate for consideration.