Bill
Bill > S4098
NJ S4098
NJ S4098Excludes all New Jersey Lottery winnings from gross income tax and eliminates related withholding requirements.
summary
Introduced
02/03/2025
02/03/2025
In Committee
02/03/2025
02/03/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill provides that all New Jersey Lottery winnings are excluded from the gross income tax and removes withholding requirements for New Jersey Lottery winnings that exceed $10,000 in value. Under current law, New Jersey Lottery winnings in excess of $10,000 are taxable under the gross income tax, and the New Jersey State Lottery is required to withhold a percentage of these prize winnings for gross income tax purposes. Currently, the Director of the Division of Taxation in the Department of the Treasury determines the withholding rate. This bill excludes New Jersey Lottery winnings in excess of $10,000 from gross income. Accordingly, all winnings from the New Jersey Lottery would be excluded from the gross income tax. As part of this exclusion, the bill also removes the New Jersey State Lottery's authority to withhold a percentage of such winnings for gross income tax purposes.
AI Summary
This bill modifies New Jersey state tax law to fully exempt all New Jersey Lottery winnings from gross income tax, eliminating the previous provision that taxed lottery prizes exceeding $10,000. Currently, lottery winnings above $10,000 were subject to state income tax, and the New Jersey State Lottery was required to withhold a percentage of these winnings as determined by the Director of the Division of Taxation. Under this new legislation, no New Jersey Lottery winnings will be considered taxable income, effectively removing the withholding requirements for lottery prizes. This means that lottery winners will keep their entire prize amount without having to pay state income tax on their winnings. The bill will take effect immediately and apply to taxable years beginning on or after the January 1 following its enactment, providing a clear timeline for implementation of the tax exemption.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 02/03/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4098 |
| BillText | https://pub.njleg.gov/Bills/2024/S4500/4098_I1.HTM |
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