ASSEMBLY LABOR COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2883

STATE OF NEW JERSEY

DATED:  JUNE 6, 2024

      The Assembly Labor Committee reports favorably Assembly Bill No. 2883.

      This bill allows a New Jersey gross income tax deduction for union dues paid to labor organizations.  The bill defines “union dues” as the total amount of dues, fees, assessments, or other charges or expenses required of members of or public employees represented by a labor organization.  The bill also defines “labor organization” as any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and that exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.

      To claim the deduction allowed under the bill, a taxpayer would be required to provide, in a form and manner prescribed by the Director of the Division of Taxation, verification of the union dues paid by the taxpayer during the taxable year.

      This bill was prefiled for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.