The proposed resolution seeks to amend the New Jersey Constitution to mandate that the State reimburse municipalities for the total property tax exemptions granted to veterans with permanent and total service-connected disabilities. Currently, while these veterans can receive a full property tax exemption, municipalities are not compensated for the lost tax revenue, which can shift the tax burden onto non-exempt property owners. This amendment aims to ensure that municipalities receive annual reimbursements equal to the amount of property taxes that would have been collected from these exempt properties, thereby alleviating the financial impact on local governments and other taxing entities such as counties and school districts.

Under the proposed amendment, municipalities would be required to pass on the reimbursements they receive from the State to the relevant local entities that impose property taxes. This change is intended to maintain the financial balance within municipalities and prevent increases in property taxes for non-exempt property owners due to the exemptions granted to veterans. The resolution outlines the process for submitting this amendment to the public for approval in the next general election, ensuring transparency and community involvement in the decision-making process.