SENATE, No. 1066

STATE OF NEW JERSEY

221st LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

Sponsored by:

Senator  LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

SYNOPSIS

     Allows gross income tax deduction for union dues paid to labor organizations.

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

An Act allowing a gross income tax deduction for union dues paid to a labor organization during the taxable year, and supplementing chapter 3 of Title 54A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

     1.    a.  A taxpayer shall be allowed to deduct from gross income any union dues paid by the taxpayer to a labor organization during the taxable year.

     b.    In order to claim the deduction allowed pursuant to this section, a taxpayer shall provide, in a form and manner prescribed by the director, verification of the union dues paid by the taxpayer during the taxable year for which the deduction is claimed.

     c.     As used in this section:

     “Director” means the Director of the Division of Taxation in the Department of the Treasury.

     “Labor organization” means 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.

     “Union dues” means the total amount of dues, fees, assessments, or other charges or expenses required of members of or public employees represented by a labor organization.

     2.    This act shall take effect immediately and apply to taxable years beginning on or after the January 1 following enactment.

STATEMENT

     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.