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 equivalent to the 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 reimbursement they receive from the State to local entities that impose property taxes, ensuring that all levels of local government are compensated for the exemptions provided to eligible veterans. The resolution outlines the process for submitting this amendment to the public for a vote in the next general election, emphasizing the importance of supporting veterans while also maintaining the financial integrity of local tax systems.