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

This bill (A2703) amends New Jersey tax law to exclude military compensation from gross income tax for service members who are domiciled in New Jersey but stationed outside the state. It specifically exempts pay received for service performed while stationed outside New Jersey, including active duty pay and housing allowances. The change applies to taxable years beginning after the bill's enactment. This directly affects New Jersey-domiciled military personnel serving at out-of-state locations, reducing their state tax burden on military compensation. The bill modifies N.J.S.54A:6-7 to clarify this tax exemption.