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Bill > SCR108
NJ SCR108
NJ SCR108Proposes constitutional amendment to require State reimbursement to municipalities for total property tax exemption provided to veterans having permanent and total service-connected disabilities.
summary
Introduced
06/03/2024
06/03/2024
In Committee
06/03/2024
06/03/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This concurrent resolution proposes an amendment to the State Constitution to require the State to annually reimburse municipalities for the lost property tax revenue related to providing a 100 percent property tax exemption to certain veterans with disabilities. Under current law, veterans having permanent and total service-connected disabilities may qualify for a property tax exemption equal to the full amount of their property tax bill. However, the State is not required to reimburse municipalities for the costs related to the total property tax exemption. Accordingly, counties, school districts, and other local entities that are authorized to impose property taxes are not themselves reimbursed for the costs related to the total property tax exemption provided to certain veterans with disabilities. Although property tax exemptions do not reduce the total amount of property tax revenue collected by a municipality, exempting some properties from taxation shifts the tax burden onto other, nonexempt properties within the municipality. As a result, property tax exemptions may lead to an increase in property taxes for the owners of nonexempt properties. This constitutional amendment would require the State to provide an annual reimbursement to municipalities for the total amount of the total property tax exemption provided to veterans having permanent and total service-connected disabilities. Specifically, the amount of the annual reimbursement would be equal to the total value of property taxes that would have otherwise been collected by the municipality for each property receiving the total property tax exemption provided to veterans having permanent and total service-connected disabilities. A municipality would be required to reimburse each county, school district, and other local entity that is authorized to impose property tax in that municipality. Each reimbursement would be in an amount equal to the property taxes that would have otherwise been due to the county, school district, or other local entity from each tax-exempt property.
AI Summary
This concurrent resolution proposes a constitutional amendment to address property tax exemptions for veterans with permanent and total service-connected disabilities. Currently, these veterans are eligible for a 100 percent property tax exemption, but municipalities are not reimbursed for the lost tax revenue. The proposed amendment would require the State to annually reimburse municipalities for the full amount of property taxes that would have been collected from these tax-exempt properties. Furthermore, municipalities would be obligated to pass along these reimbursements to counties, school districts, and other local entities that are authorized to impose property taxes, with each entity receiving the exact amount of taxes they would have collected from the exempt properties. This change aims to prevent the current situation where the tax burden is shifted onto non-exempt property owners, potentially leading to higher taxes for those properties. The amendment would ensure that local governments are fully compensated for the property tax exemptions provided to disabled veterans, thereby maintaining the financial integrity of local tax structures while continuing to provide meaningful support to veterans with service-connected disabilities.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 06/03/2024)
Official Document
bill text
bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/SCR108 |
| BillText | https://pub.njleg.gov/Bills/2024/SCR/108_I1.HTM |
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