Excludes military compensation of military personnel serving outside of this State from gross income tax.

This bill (S 627) exempts specific military compensation from New Jersey's gross income tax for service members domiciled in New Jersey but stationed outside the state. It amends tax code section N.J.S.54A:6-7 to exclude: (1) U.S. military pay for NJ-domiciled personnel serving out-of-state, (2) mustering-out payments, and (3) housing/subsistence allowances for active/reserve forces and NJ National Guard members on state duty. The policy change directly affects New Jersey-resident military personnel serving away from home, removing this income from state tax calculations. The exemption applies to taxable years ending after the law takes effect, which is immediate upon enactment.