This bill amends New Jersey tax law to exclude all winnings from the New Jersey Lottery from gross income tax, effectively eliminating the tax liability for lottery winners. Previously, winnings exceeding $10,000 were subject to gross income tax, and the New Jersey State Lottery was required to withhold a percentage of these winnings for tax purposes. The bill removes the provision that allowed for the taxation of lottery winnings over this threshold, thereby ensuring that all lottery winnings are exempt from gross income tax.

Additionally, the bill eliminates the requirement for the New Jersey State Lottery to withhold a percentage of winnings for gross income tax purposes. This change simplifies the tax process for lottery winners and removes the administrative burden associated with withholding. The bill is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.