This bill amends New Jersey tax law to exclude all winnings from the New Jersey Lottery from gross income tax, effectively eliminating the previous requirement that winnings exceeding $10,000 be included in gross income. The current law mandates that lottery winnings above this threshold are subject to taxation, and the New Jersey State Lottery is required to withhold a percentage of these winnings for tax purposes. The bill removes this stipulation, thereby allowing all lottery winnings to be tax-exempt.

Additionally, the bill eliminates the withholding requirements for the New Jersey State Lottery, which previously had to withhold a 3% tax on gambling winnings when required for federal income tax purposes. With these changes, the bill aims to simplify the tax treatment of lottery winnings and provide financial relief to winners by ensuring that their entire prize amount is received without deductions for state income tax. The act is set to take effect immediately for taxable years beginning on or after January 1 following its enactment.