This bill authorizes a proportional property tax exemption for honorably discharged veterans with a service-connected disability, starting from a minimum disability rating of 25 percent. The exemption is granted in proportion to the veteran's disability percentage, with a cap of $15,000 for those with less than 100 percent disability. However, veterans deemed unemployable due to their service-connected disability, even if rated less than 100 percent, will receive a full 100 percent property tax exemption. The bill also maintains the existing provisions that allow surviving spouses of eligible veterans to receive the same property tax exemption.

Additionally, 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. To support municipalities, the State will reimburse them annually for the cost of these exemptions, including administrative expenses. The bill includes reporting requirements for tax assessors and county boards of taxation to ensure accurate reimbursement calculations. The changes are set to take effect on January 1 following the enactment of the bill.

Statutes affected:
Introduced: 54:4-3.30