This bill proposes a proportional property tax exemption for honorably discharged veterans with a service-connected permanent disability, establishing that the exemption will be based on the percentage of their disability rating, starting from a minimum of 10 percent. The exemption is capped at $10,000 for those with disabilities less than 100 percent, while veterans with a 100 percent disability rating will continue to receive a full property tax exemption. Additionally, veterans deemed unemployable due to their service-connected disabilities, even if rated less than 100 percent, will also qualify for a 100 percent exemption. 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.

Furthermore, the bill mandates that the State will reimburse municipalities for the cost of these exemptions, including administrative expenses, at a rate of 102 percent of the exemption amount granted. It includes provisions for tax assessors and county boards of taxation to report the number and total amount of exemptions annually, ensuring accurate reimbursement. The act is set to take effect on January 1 following its enactment.

Statutes affected:
Introduced: 54:4-3.30