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

This bill eliminates state income tax on all New Jersey Lottery winnings, removing the current $10,000 threshold that previously made larger prizes taxable. It directly affects New Jersey residents who win lottery prizes, ensuring all winnings - regardless of amount - are excluded from gross income tax calculations. The bill also eliminates the requirement for the New Jersey State Lottery to withhold 3% tax from prize payments, which currently applies to winnings over $10,000. This changes the tax treatment from a partial exclusion to a full exemption for all lottery prizes. The policy change would apply to all taxable years beginning after the bill's enactment date.