The proposed resolution seeks to amend the New Jersey State Constitution to adjust the veterans property tax deduction based on the annual percentage increase in the Consumer Price Index (CPI). Currently, veterans who have been honorably discharged are entitled to a fixed deduction of $250 on their property taxes, a figure that has remained unchanged since 2003. The amendment would first increase this deduction for the tax year 2026 by accounting for the cumulative CPI increases from 2003 to 2025. Following this adjustment, the deduction would be adjusted annually in accordance with the CPI, ensuring that it keeps pace with inflation. Importantly, the resolution stipulates that the deduction will never decrease, even in years when inflation is negative.

Additionally, the resolution includes provisions for surviving spouses of veterans, allowing them to receive the same property tax deduction during their widowhood. It also outlines how continuing care retirement communities can apply the veterans' property tax deduction on behalf of eligible residents. The proposed amendment will be submitted to voters at the next general election, following the necessary legislative processes, and will require implementing legislation to define the CPI for the adjustments. This initiative aims to provide better financial support to veterans and their families by ensuring that the property tax deduction reflects the realities of inflation over time.