Turner, Addiego Bill Exempting Armed Services Combat Zone Pay from Gross Income Taxation Passes Senate

Trenton – Legislation sponsored by Senator Shirley Turner and Senator Dawn Marie Addiego to exclude Armed Services combat zone pay from the state income tax, was sent to the governor today.

“The brave men and women of our Armed Forces sacrifice so much to keep us safe here at home,” said Senator Turner (D-Mercer/Hunterdon). “The money they earn while in active combat zones, or recovering from a combat zone related injury, should not be subjected to any income tax when they are already selflessly putting their lives on the line for our nation.”

The bill, S-2050/S-2090, would modify the New Jersey tax code to treat combat zone compensation received by members of the Armed Forces in the same way that it is treated under federal law, where it is excluded from federal income tax.

“Members of our military courageously face increased risks and immediate threats while serving within combat zones, and because of these risks, they receive a combat pay bonus,” said Senator Addiego (D-Atlantic/Burlington/Camden). “New Jersey is currently the only state in the nation taxing combat zone pay. This legislation rights this wrong and would benefit the husbands and wives, and sons and daughters of our military personnel back home.”

Under current state law, income received as combat zone compensation by members of the Armed Forces of the United States is subject to tax and must be reported as income on the taxpayer’s New Jersey gross income tax return for the taxable year in which it is received.

The bill passed the Senate by a vote of 39-0, the Assembly by a vote of 78-0, and now heads to the Governor’s desk.