Budget & Taxes

in committee · New Jersey · Senate Jan 13, 2026

S 974: Imposes daily fine of $250 upon each member of Legislature during state of emergency due to failure to enact annual appropriations law.

This bill (S 974) would impose a $250 daily fine on each New Jersey legislator for failing to pass the state's annual budget law during a declared state of emergency. The fine applies to each day or partial day the Legislature misses the constitutional deadline for enacting the budget. All collected fines would go directly to the State General Fund via the State Treasurer. The bill targets legislators' accountability for budget delays during emergencies, not the budget's content or impact on residents.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enforces timely budget passage via fines, directing collected funds to State General Fund, promoting fiscal accountability and preventing budget delays during emergencies.90% confidence

Sub-Topics State Budget

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in committee · New Jersey · Senate Jan 13, 2026

S 1763: Provides refundable gross income tax credit for early principal payments on certain home mortgages.

This New Jersey bill (S 1763) creates a refundable tax credit for homeowners who make extra principal payments on qualifying mortgages. Taxpayers can claim 50% of these extra payments, up to $1,000 annually, reducing their state income tax bill (or creating a refund if the credit exceeds tax owed). To qualify, the mortgage must be for a primary residence, be a traditional 15-30 year loan, and the homeowner must meet income limits (e.g., single filers with $125,000-$135,000 taxable income see reduced credits). The credit applies only to payments beyond the required monthly amount and cannot be claimed for more than 10 years total.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit reducing state tax liability for middle-income homeowners ($125k-$135k income), directly advancing tax relief for targeted demographic.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

S 2058: Excludes tips from gross income tax.

S 2058 would amend New Jersey's tax code to exclude tips from gross income tax calculations. The bill removes tips from the list of taxable income categories in the state's definition of gross income, meaning tips earned by workers would no longer be subject to state income tax. This change would directly affect individuals who rely on tips for income, such as restaurant servers, bartenders, and hospitality workers. As a result, these workers would have a lower taxable income and potentially pay less in state income tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes tips from taxable income, providing direct tax relief to service workers (lower-income earners), aligning with tax relief indicators for middle/lower income.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes tips from taxable income, increasing net earnings for service workers who rely on tips, directly advancing worker compensation within Labor & Employment.95% confidence

Sub-Topics Income Tax Labor Standards Minimum Wage

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in committee · New Jersey · Senate Jan 13, 2026

S 2277: Eliminates sales tax on baby necessities and sunscreen.

This New Jersey bill (S 2277) eliminates sales tax on specific baby products and sunscreen. It exempts baby wash, shampoos, lotions, powders, car seats, cribs, nursing supplies, and strollers from the state sales tax. It also exempts sunscreen regulated by the FDA for UV protection (excluding cosmetic products). The exemption applies to retail purchases starting October 1, 2025, directly reducing costs for parents buying essential baby items and sunscreen.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts essential baby items and sunscreen from sales tax, providing direct tax relief to lower-income families purchasing necessities.95% confidence

Sub-Topics Sales Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 64: Provides that school districts spending below adequacy will not be subject to certain State school aid reductions.

This bill (S 64) prevents New Jersey school districts that are spending below the state's adequacy standard from facing state aid reductions under existing law. It directly affects all public school districts and county vocational school districts meeting this spending threshold, regardless of their district type (SDA or non-SDA). The key mechanism eliminates the scheduled aid reductions for these districts by exempting them from the reduction schedule outlined in P.L.2018, c.67, ensuring they receive full state aid without cuts. The bill applies to the 2019-2020 through 2024-2025 school years.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents state aid reductions for underfunded school districts, maintaining existing public education funding levels without tax changes.90% confidence ✓ EducationSupports EducationPrevents state aid reductions for districts spending below adequacy, protecting their funding and supporting school financial stability without requiring additional spending.95% confidence

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in committee · New Jersey · Senate Jan 13, 2026

S 982: Provides retirement income exclusion under gross income tax for certain persons with income over $3,000 from part-time employment.

This bill (S 982) modifies New Jersey's retirement income tax exclusion to help seniors aged 62+ who work part-time. It allows individuals with retirement income to exclude that income from taxable income even if they earned over $3,000 from part-time employment (defined as less than 30 hours/week), which previously disqualified them. The exclusion amount is reduced based on part-time earnings: subtracting (2,000 × minimum wage) and any other claimed exclusion. It specifically excludes those working full-time (30+ hours/week) from this provision. The bill affects New Jersey retirees with modest part-time income who would otherwise lose their retirement tax benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exclusion for seniors' retirement income, reducing taxable income for part-time workers over 62, providing tax relief.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

SR 25: Urges State to fully fund extraordinary special education aid for students in 2023-2024 fiscal year and thereafter.

This Senate resolution (SR 25) urges New Jersey to fully fund state reimbursements for school districts' extraordinary special education costs, as required by the 2008 School Funding Reform Act (SFRA). It specifically addresses the current shortfall where districts were eligible for $585.4 million in reimbursements for 2022-2023 but received only $420 million (71.7% of entitlement), affecting districts serving students with disabilities whose costs exceed $40,000 (public schools) or $55,000 (private schools). The resolution emphasizes that full funding is needed to help districts cover high costs for vulnerable students and stabilize budgets without shifting burdens to local taxpayers. It does not create new law but calls on the state to meet its existing legal obligation under the SFRA.

Topics ✓ Budget & TaxesSupports Budget & TaxesUrges full state funding for special education reimbursements, addressing $165.4M shortfall under SFRA, advancing essential public service funding.90% confidence ✓ EducationSupports EducationUrges full funding of special education reimbursements to address $165.4M shortfall, protecting student services under SFRA.95% confidence

Sub-Topics School Funding Special Education

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in committee · New Jersey · Senate Jan 13, 2026

S 1091: Increases annual income limitation for senior and disabled citizens' eligibility for $250 property tax deduction and bases future annual income limitations on annual CPI changes.

This bill updates New Jersey's property tax deduction program for seniors and disabled residents. It increases the annual income limit for eligibility from $10,000 to $20,000 for 2023, and adjusts this limit each year thereafter based on changes in the Consumer Price Index (CPI) for cost-of-living, rounded to the nearest $100. The deduction amount itself remains fixed at $250 annually. This change directly affects New Jersey residents aged 65+ or permanently disabled with income under the new threshold who own or reside in qualifying property.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands property tax deduction eligibility for seniors/disabled, providing tax relief to lower-income residents through income-based eligibility increase.95% confidence

Sub-Topics Property Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 1915: "Securing Access to Funding for Educating Drivers (SAFE) Act"; establishes NJ Behind-The-Wheel Driver Education Scholarship Program; appropriates $1 million.

The SAFE Act (S 1915) creates a New Jersey scholarship program to help low-income teens aged 16-17 cover the cost of a required six-hour behind-the-wheel driver education course. It appropriates $1 million from the state General Fund to provide scholarships covering the full course cost or $500 (whichever is less) for eligible residents from households at or below twice the federal poverty level. To qualify, applicants must be NJ residents, pass a written driving exam, and meet income requirements. The program, administered by the Motor Vehicle Commission, will award scholarships on a rolling basis as funds allow, with annual reports to the Governor and Legislature. The bill is pending in the Senate Transportation Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates $1M from General Fund for driver education scholarships, directly funding a public service program targeting low-income teens.95% confidence ✓ EducationSupports EducationProvides $1M scholarship to cover required driver education costs for low-income teens, expanding access to a mandated educational program for K-12 students.95% confidence ✓ TransportationSupports TransportationFunds driver education scholarships to enhance road safety, aligning with transportation safety initiatives per bill's funding of driver training program.90% confidence

Sub-Topics State Budget Student Financial Aid Driver Licensing

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in committee · New Jersey · Senate Jan 13, 2026

S 1886: Allows gross income tax deduction for charitable contributions made to animal shelters.

This bill allows New Jersey taxpayers to deduct up to $1,500 of charitable contributions made to qualifying New Jersey animal shelters from their state gross income tax. It specifically defines "animal shelter" as a licensed facility caring for abandoned, lost, or endangered domestic animals until adoption, relocation, or euthanasia, including municipal animal control facilities. The deduction applies to donations made in a taxable year to shelters meeting these criteria. The policy change takes effect for taxable years beginning after the bill's enactment date.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for charitable donations, reducing taxable income for donors and aligning with tax relief policies for charitable giving.90% confidence

Sub-Topics Income Tax

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