Assemblyman Eric Munoz, MD

MUNOZ URGES COLLEAGUES TO SUPPORT BILL THAT WOULD EXEMPT MILITARY PERSONNEL FROM PAYING STATE INCOME TAX

Assemblyman Eric Munoz, M.D., is calling on his colleagues from both political parties to support legislation he introduced last week that would exempt military personnel that maintain a "home of record" residence in New Jersey but serve outside the state from paying state income tax."These courageous men and women who serve to preserve and protect our freedoms here in the U.S. and abroad are making a tremendous sacrifice," said Munoz, R-Essex, Morris Union and Somerset. "Many are reservists that have left their jobs and families while they are serving; we have an obligation to look after their families as well. They endure a personal sacrifice and in many cases a financial hardship as well."

The bill, A-3957, would exempt the compensation of military personnel who are residents of the state, but serving outside of New Jersey, from the state's gross income tax. It was introduced on January 29, 2007, but has not yet been referred to committee.

The issue was brought to Munoz's attention in January by the father of a young man who is currently serving in the United States Army. Although the soldier has not resided in the state since 2005, he has been serving in other states and abroad. His "home of record" according to the Army is West Windsor, NJ. As a result, the State of New Jersey requires he pay state income tax on his monthly compensation of $1,458.90. Recently, radio talk show hosts Craig Carlton and Ray Rossi broadcast this story to bring it to the attention of members of the Legislature hoping that they would respond.

The soldier's father noted that while his son will be serving in Germany for the next two years, the state will continue to withhold state income tax from his military pay. He wrote in an email to Munoz, "Even if my son never returns to the State of New Jersey for the next 20 years of his military career, this state will continue to tax his income."

There are 20,700 military personnel from New Jersey serving worldwide who currently pay about $9 million annually in state income tax. Eighty-three percent are enlisted personnel; 17 percent are officers. Only 15 other states withhold income tax from military personnel.

"Far too many military families have a difficult time making ends meet while their loved ones are serving our country. These soldiers and their families are the ones paying a very high price for our freedom and liberty in ways most of will never truly understand," said Munoz. "The last thing this state should be doing is taxing their military compensation. We have an obligation to try and ease their burden, not make it heavier."

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For more information, contact:
Assemblyman Eric Munoz/908-918-0414
Assembly Republican Office/609-292-5339