TRENTON, N.J. — Senator Carmen Amato, Jr., Assemblyman Brian Rumpf, and Assemblyman Gregory Myhre of New Jersey’s 9th Legislative District are urging the state to reimburse municipalities for the cost of state-mandated property tax exemptions for 100% disabled veterans.
Under current law, municipalities must provide the tax break without receiving compensation from the state, a situation the lawmakers say imposes a financial burden on local budgets. The 9th District delegation has introduced legislation — S-2559 and A-3705 — requiring the state to reimburse both the full amount of the exempted taxes and the related administrative expenses.
“This is a matter of fairness for both our veterans and our taxpayers,” Senator Amato said during a May 8 Senate Budget and Appropriations Committee hearing, which included testimony from the New Jersey Department of Veterans Affairs.
The legislators argue that the state-mandated benefit, while important, should not be shouldered solely by municipalities, especially those with higher numbers of qualifying veterans. They say the current system leads to increased property taxes for non-exempt residents.
Lawmakers highlight local impact of unfunded mandate
“Trenton must honor its commitment to our veterans by reimbursing municipalities for the costs tied to the 100% disabled veteran property tax exemption,” the delegation stated. “This unfunded state mandate unfairly burdens towns with higher numbers of qualifying veterans.”
The proposed bills aim to ensure state accountability and prevent the shifting of financial responsibility to local governments. The lawmakers emphasized that their district has a high veteran population, intensifying the fiscal impact on municipal budgets.
They also criticized the lack of state funding despite public support for veterans’ programs, saying the burden has been passed on to towns in both financial and administrative forms.
The delegation has pledged to continue raising the issue during state budget negotiations, stating that local taxpayers should not be forced to absorb the cost of a benefit promised by the state.
South Jersey lawmakers seek state funding to ease the strain of property tax exemptions for disabled veterans on local governments.
