N.J. Senate panel advances bill to exempt volunteer first responder stipends from taxation
TRENTON, N.J. — A bill that would exempt monetary stipends paid to volunteer first responders from state payroll and income taxes cleared the Senate Budget and Appropriations Committee, lawmakers announced this week.
The measure, sponsored by Sen. Gordon Johnson, aims to strengthen recruitment and retention among volunteer firefighters and emergency responders by increasing the value of the stipends they receive for their service.
“Volunteer first responders are the backbone of public safety in many of our communities, yet recruitment and retention have become increasingly difficult. These individuals dedicate their time, energy, and often put themselves in harm’s way to protect others, all without expecting financial compensation,” said Johnson (D-Bergen). “By exempting the stipends they receive from taxation, we are taking a meaningful step toward recognizing their service and alleviating the financial burdens that may discourage participation.”
The bill, S-788, would exempt volunteer first responder stipends from payroll taxes, including Temporary Disability Insurance and Family Leave Insurance, and ensure the payments are excluded from a taxpayer’s gross income.
The legislation is intended to encourage more residents to join volunteer fire and emergency service agencies, which have struggled in recent years with declining membership and rising operational demands.
