SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 1927

STATE OF NEW JERSEY

DATED:  JUNE 26, 2025

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 1927.

      As reported, this bill extends the veteran’s gross income tax exemption to spouses of deceased veterans.  Currently, veterans are allowed a $6,000 exemption, which can be taken as a deduction from their income, for purposes of calculating their State gross income tax liability.  If a veteran dies during a taxable year, the spouse of the veteran is allowed the exemption for that taxable year if filing a joint return. However, the spouse is not allowed the exemption in subsequent years.  Under this bill, the spouse of the deceased veteran would be allowed to continue to claim the exemption until the spouse remarries.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) estimates that the bill will result in a loss of State gross income tax revenues of approximately $140,000 to $700,000 in FY 2027.  This estimate assumes that the bill will be enacted in calendar year 2025.

      The bill may allow 3,400 to 3,600 surviving spouses of deceased veterans to retain eligibility for the veterans’ gross income tax exemption in FY 2027.  The State revenue loss is expected to increase over time as additional surviving spouses become eligible to claim the veterans’ gross income exemption.