This bill amends current New Jersey law to authorize a proportional property tax exemption for honorably discharged veterans with service-connected permanent disabilities, including those with mental illnesses. Previously, only veterans with a 100% disability rating were eligible for a full exemption. The new provisions allow veterans with any degree of service-connected permanent disability to receive a tax exemption proportional to their disability rating, as determined by the United States Department of Veterans Affairs. Additionally, the bill clarifies that surviving civil union partners and domestic partners of disabled veterans are eligible for the same property tax exemption as the deceased veteran, extending the exemption until the surviving partner enters into a new civil union, domestic partnership, or remarries.

The bill also includes specific definitions for "mental illness," "surviving civil union partner," and "surviving domestic partner," ensuring that the eligibility criteria are clear and inclusive. It allows for the exemption to continue for surviving partners even if the disability declaration occurs after the veteran's death. Furthermore, the bill stipulates that the governing body of each municipality may refund property taxes collected on properties that would have been exempt had a proper claim been made, thereby providing financial relief to eligible veterans and their families.

Statutes affected:
Introduced: 54:4-3.30, 54:4-3.31, 54:4-3.32