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 veterans 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 bill aims to streamline the process and provide financial support to disabled veterans and their surviving spouses while ensuring that municipalities are compensated for the tax revenue lost due to these exemptions.

Statutes affected:
Introduced: 54:4-3.30