Excludes all New Jersey Lottery winnings from gross income tax and eliminates related withholding requirements.

This bill, S 4098, eliminates New Jersey’s tax on all lottery winnings by excluding them from gross income tax and removing the requirement for the New Jersey Lottery to withhold tax. Currently, winnings over $10,000 are taxable and subject to 3% withholding; this bill removes that threshold entirely, making all prizes tax-free. It directly affects New Jersey lottery winners who receive prizes of any amount. The law would take effect immediately for taxable years starting after enactment.