Trenton, NJ – A new proposal in the Assembly would extend proportional property tax exemptions to honorably discharged veterans with service-connected disabilities starting at 10 percent.
The measure also requires the State to reimburse municipalities for the full cost of any exemption granted.
Lawmakers said the bill is designed to align property tax relief with federal disability ratings.
Under A2717, veterans would receive exemptions equal to their disability percentage, capped at $10,000 for those below 100 percent.
Bill broadens eligibility standards
The proposal removes older statutory references to specific medical conditions and instead bases eligibility solely on determinations made by the U.S. Department of Veterans Affairs.
Veterans deemed unemployable because of service-connected conditions would receive a full exemption even if their rating is below 100 percent.
Current law allowing total exemptions for veterans with 100 percent disability ratings would remain unchanged.
Surviving spouses would retain the same exemption their spouse held or would have qualified for, provided they own and occupy the home.
Spouses of service members who died in active service would continue to qualify under existing provisions.
State reimbursement requirements outlined
A2717 directs the State to reimburse municipalities at 102 percent of the total value of exemptions issued, covering both tax losses and administrative costs. Tax assessors must certify exemption totals to county tax boards by June 1 each year, with county boards forwarding consolidated figures to the Division of Taxation by June 15.
County tables of aggregates would be required to list the full estimated value of exemptions, though the amount would not be used in calculating tax rates.
The Division of Taxation would have authority to review assessor and collector records tied to exemption claims.
The bill would take effect on January 1 following enactment.
