This bill authorizes a proportional property tax exemption for honorably discharged veterans with a service-connected disability, starting at a minimum disability rating of 25 percent. The exemption is granted in proportion to the veteran's disability percentage, with a cap of $15,000 for those with less than 100 percent disability. However, veterans deemed unemployable due to their service-connected disability will receive a full 100 percent property tax exemption, aligning with the current law for those with a 100 percent disability rating. The bill also extends the property tax exemption to the surviving spouses of eligible veterans, maintaining the existing provisions for their benefits.

Additionally, the bill removes specific medical conditions from eligibility criteria, allowing any service-connected disability recognized by the United States Department of Veterans' Affairs to qualify for the exemption. To support this initiative, the State is required to reimburse municipalities for the cost of these exemptions, including administrative expenses, ensuring that local governments are not financially burdened. The bill includes reporting requirements for tax assessors and county boards of taxation to facilitate accurate reimbursement calculations.

Statutes affected:
Introduced: 54:4-3.30