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 required to be compensated for the lost tax revenue, which can shift the tax burden onto non-exempt property owners. This amendment aims to alleviate that burden by ensuring that municipalities receive annual reimbursements equivalent to the property taxes that would have been collected from these exempt properties.

Under the proposed amendment, municipalities would also be required to pass on these reimbursements to counties, school districts, and other local entities that impose property taxes. This would ensure that all levels of local government are compensated for the tax revenue lost due to 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, ensuring transparency and public involvement in the decision-making process.