This bill amends existing property tax exemption laws for honorably discharged veterans with service-connected disabilities in New Jersey. It establishes a proportional property tax exemption based on the percentage of disability, starting from a minimum of 30 percent, with a cap of $10,000 for those with disabilities less than 100 percent. Veterans with a 100 percent disability rating will continue to receive a full property tax exemption. Additionally, veterans deemed unemployable due to service-connected disabilities, even if rated less than 100 percent, will also qualify for a 100 percent exemption. The bill allows the surviving spouses of veterans to inherit the 100 percent exemption, but not the proportional exemption for those rated less than 100 percent.

The legislation 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. Furthermore, the bill mandates that the State reimburse municipalities for the cost of these exemptions, including administrative expenses, ensuring that local governments are financially supported in implementing these changes. Reporting requirements are also included to facilitate accurate reimbursement calculations. The bill is set to take effect on January 1 following its enactment.

Statutes affected:
Introduced: 54:4-3.30