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 clarity in eligibility criteria. It allows for the continuation of property tax exemptions for surviving partners of veterans who were declared disabled after the veteran's death. Furthermore, the bill mandates that municipalities may return property tax payments made since the time of the veteran's disability or death, enhancing the financial support for veterans and their families. Overall, this legislation broadens the scope of property tax relief for veterans and their surviving partners, promoting equitable treatment for those who have served in the armed forces.

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