This bill amends existing law to provide a proportional property tax exemption for honorably discharged veterans with a service-connected permanent disability, starting at a minimum disability rating of 10 percent. The exemption is calculated based on the percentage of disability, with a cap of $10,000 for those with less than 100 percent disability. However, veterans deemed unemployable due to their service-connected disabilities will receive a full 100 percent exemption, aligning with the current provisions for those with a 100 percent disability rating. The bill also 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.

Additionally, the bill mandates that the State reimburse municipalities for the cost of these property tax exemptions, including administrative expenses, at a rate of 102 percent of the exemptions granted. It establishes reporting requirements for tax assessors and county boards of taxation to ensure accurate tracking and reimbursement of the exemptions. The changes aim to simplify the eligibility process for veterans and provide financial support to municipalities affected by the exemptions. The act is set to take effect on January 1 following its enactment.

Statutes affected:
Introduced: 54:4-3.30