TRENTON – Senator Ellen Karcher announced that she has signed on to sponsor the Senate version of a bill which would exempt active-duty military personnel serving outside of the State from New Jersey’s gross income tax.
“We should do everything in our power to support the brave men and women defending our country abroad,” said Senator Karcher, D-Monmouth and Mercer. “I think that our troops serving overseas have earned exemption from the State income tax, by risking their lives to keep America safe. To tax their military pay, when our soldiers are already sacrificing so much for the greater good, is disgraceful.”
Senator Karcher’s bill, S-2571, would provide a gross income tax exclusion for all military compensation of military personnel serving outside of New Jersey. The exclusion would apply to any military personnel stationed or deployed out of State for more than six months in a calendar year. Senator Karcher noted that the bill is in direct response to concerns communicated to her by Paul Newell, an Oceanport resident, whose son, Paul, Jr., is stationed in Germany, but still pays a portion of his military wages in New Jersey income taxes.
“The Newells really shed light on this issue, and the inherent unfairness of taxing military personnel serving out-of-State,” said Senator Karcher. “These soldiers do not get to take advantage of New Jersey’s government services, and are still being tapped to pay for them, while already sacrificing so much for the causes of freedom and liberty. I will push for swift consideration of this bill in the Senate, so that our Armed Forces personnel can begin benefiting from the exemption this tax year.”
The bill is currently pending before the Senate Law, Public Safety and Veterans’ Affairs Committee. Identical legislation, sponsored by Assemblyman Mike Panter, is pending in the Assembly Military and Veterans’ Affairs Committee.