Under current law, Olympians are taxed on cash prizes they receive when they medal in an event, according to the bill's would-be sponsors, Assembly Republicans Donna Simon, Jay Webber and Ronald S. Dancer. The honorarium is subject to state and federal taxes, and federal legislators have touted similar proposals in recent weeks.

This year's Olympics in London end this weekend. Through this morning, 10 New Jersey athletes have won medals, while three others were still in contention, according to a news release from the lawmakers.

"No one is rooting for our hometown athletes to go broke just because they go for the gold," Dancer (R-Jackson) said in a prepared statement.

Olympians receive $25,000 for gold medals, $15,000 for silver and $10,000 for bronze, the release said. The legislators say they have garnered bipartisan support for the measure.