TRENTON – Governor Phil Murphy signed legislation (S2050) to exclude combat pay from gross taxable income under the New Jersey income tax. New Jersey is the only state currently taxing combat pay, which is also untaxed by the federal government.

“Members of the military put everything on the line for our state and our country,” said Governor Murphy. “I am happy and proud that, even in the midst of our state’s most serious fiscal crisis, we were able to find a way to make life easier for our troops and provide some long-overdue relief to the bravest among us.”

“All distractions when deployed reduce combat effectiveness. This is a positive action that will pay dividends for our women and men in combat,” said Maj. Gen. Jemal J. Beale, The Adjutant General of New Jersey and Commissioner of the New Jersey Department of Military and Veterans Affairs.

Primary sponsors of S2050 include Senators Shirley K. Turner, Michael L. Testa, Jr., and Kristin M. Corrado, and Assemblymembers Annette Quijano, Cleopatra G. Tucker, and Wayne P. DeAngelo.

“I would like to thank Governor Murphy.  This is a big salute to our military personnel, especially those serving in combat zones,” said Senator Shirley Turner. “Our military members are putting their lives at risk while their pay is below or at the poverty line.  Their families are also making enormous personal sacrifices.  New Jersey should be honoring military service, not taxing it.  I first introduced this bill 19 years ago, and I am elated that New Jersey will now join the rest of the nation to become the 50th state to exempt combat zone pay from taxation.”

“Previous versions of this important bill have languished in the Legislature for 10 years. When I was sworn into the Senate in January, I made this one of my priorities and began advocating for its passing and enactment on behalf of American servicemen and women,” said Senator Michael Testa. “I am proud that working with colleagues on both sides of the aisle, we are finally reversing the insensitive policy, and I thank the Governor for his support.”

“The military men and women who put their lives on the line to fight for our freedoms in war zones are under-paid heroes,” said Senator Kristin Corrado. “The military provides a combat zone stipend of $225 per week, and this new law allows our soldiers to hold onto more of it, exempting the bonus from state income tax. As a nation, we ask more than enough from our U.S. military members. Taxing their combat pay is unnecessary and insensitive, and that flawed practice ends today.”

“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 Dawn Marie Addiego.

“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.”

“Every year, New Jersey residents are deployed to countries throughout the world to fight on behalf of America. Those military members serving in combat zones risk their lives in defense of our country,” said Assemblywoman Annette Quijano, Assemblywoman Cleopatra Tucker, and Assemblyman Wayne DeAngelo in a joint statement. “It is only right we honor their courage and sacrifice by exempting the pay they earn during that time period as well as any time spent in a hospital for injuries sustained in combat from state income taxes. Here in New Jersey, we value the service of our military members and veterans.”

“I am proud today of Gov. Murphy and the State of New Jersey for adopting the combat zone state tax exemption. It must have been a difficult decision to make in challenging financial times,” said Lt. Col. Peter Lupo, Vice President of Legislative Affairs, New Jersey Veterans Chamber of Commerce. For that reason, New Jersey soldiers will be deeply appreciative. I can personally attest to that.”

S2050 excludes military pay for service in a combat zone, or for hospitalization as the result of an injury while serving in a combat zone, from gross taxable income under the New Jersey income tax. The bill excludes combat pay in the same manner as federal taxation does. A combat zone is defined as any area the President of the United States designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat.

MORRIS COUNTY — Governor Phil Murphy extended the public health emergency and related restrictions on activities in New Jersey, which were first put into place at the start of the COVID-19 pandemic under an executive order he issued on March 8, 2020.

Executive Order No. 186 extends all executive orders previously issued by the Governor under the Emergency Health Powers Act.  The new order also extends all actions taken by any state executive branch departments and state agencies in response to the public health emergency declared due to the COVID-19 outbreak.

Under the state’s Emergency Health Powers Act, a declared public health emergency expires after 30 days unless renewed.

For the full text of Executive Order No. 186, click here.

MORRIS COUNTY — Taxpayers will save an estimated $2.8 million under a refinancing plan announce by the Morris County Board of Freeholders this week that involves multiple bonds issued through the Morris County Improvement Authority.

The $2.8 million savings will be realized over the life of various bonds issued within the past ten years for multiple county and local projects. The refinancing is a prudent step undertaken to secure lower financing rates – similar to taxpayers refinancing a home mortgage.

Morris County freeholders and administrators have worked to maintain fiscal responsibility and continue the county’s coveted “AAA” credit rating, despite the COVID-19 pandemic. The “AAA” rating is the highest possible credit rating assigned by financial rating agencies, and it enables the county and its 39 municipalities to secure the most cost-effective financing when bonding becomes necessary for capital improvements.

“This freeholder board has not only maintained the county’s triple AAA rating, but we have also strengthened it even in the current pandemic,” said Freeholder John Krickus. “As Standard & Poors commented in its Morris County rating report: ‘We view positively that the county started a (COVID-19) task force looking at longer-term economic and financial impact of the pandemic on the county’s finances.’ “

Freeholder Krickus was referencing a task force formed as part of an aggressive response undertaken by Morris County in early spring to keep the community safe from the virus and deal with emerging issues as the pandemic continues.

“Morris County has maintained a triple AAA rating, reduced debt, streamlined operations, frozen taxes, and balanced the budget without borrowing,” said Freeholder Krickus. “In contrast, the State of New Jersey has one of the lowest credit ratings in the country, continues to increase spending, increased numerous taxes and fees, and utilized $4 Billion in debt to balance an operating budget.”

Since the freeholders established the Morris County Improvement Authority in 2002, the agency has provided towns, school districts, and the county itself with innovative and cost-effective methods of funding public projects while saving tax dollars. Through the authority, towns have been able to borrow under the umbrella of Morris County’s “AAA” bond rating to finance local projects, such as purchasing equipment and vehicles or constructing local facilities, at lower costs thereby reducing the property tax burden on their residents.