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NJ SCR113

NJ SCR113
Proposes constitutional amendment to increase amount of veterans' property tax deduction based on annual increases in CPI.

summary

Introduced
09/19/2024
In Committee
09/19/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This concurrent resolution would amend the State Constitution to increase the amount of the veterans' property tax deduction each tax year based on the annual percentage increase in the Consumer Price Index (CPI). The CPI is a widely used method of measuring inflation and is an expression of the average change over time in the prices paid by certain consumers for the purchase of certain goods and services. CPI Indexes are issued for both the United States as a whole and for various geographic areas. Currently, citizens and residents of the State who have been honorably discharged or released under honorable circumstances from active service in the United States Armed Forces are annually entitled to a $250 deduction from the amount of property taxes due on real property. The deduction was last increased by voter approval of a constitutional amendment in 1999 to gradually raise the deduction over a period of four years. The final increase occurred in 2003 to set the amount of the deduction at $250, where it has remained ever since. To account for changes in the cost of living that have occurred since 2003, the concurrent resolution would first increase the amount of the deduction for tax year 2026 by the amount of the annual percentage increases in the CPI that have occurred each tax year from 2003 through 2025. Then, beginning in tax year 2027, the concurrent resolution requires the amount of the deduction to be annually adjusted based on the percentage increase in the CPI for that tax year. Any increase made to the deduction would be rounded to the next highest dollar increment and the amount of the deduction would not be reduced in any year, even if inflation decreases. The concurrent resolution also provides that the amount of the deduction would not be reduced for any year, even if the Consumer Price Index decreased in that year. The proposed constitutional amendment is conditional upon the enactment of implementing legislation establishing a definition of Consumer Price Index to determine increases in tax year 2026 and thereafter.

AI Summary

This concurrent resolution proposes a constitutional amendment to modify the veterans' property tax deduction by linking it to the Consumer Price Index (CPI), which is a standard economic measure tracking changes in the prices of goods and services. Currently, honorably discharged veterans receive a $250 annual property tax deduction, a level that has remained unchanged since 2003. The resolution would first adjust the deduction for tax year 2026 by calculating the cumulative CPI increases from 2003 through 2025, effectively "catching up" the deduction to reflect inflation over that period. Starting in tax year 2027, the deduction would be automatically adjusted each year based on that year's CPI percentage increase. Importantly, the amendment includes provisions to ensure the deduction can only increase, not decrease, even if inflation is negative, and any increases would be rounded up to the nearest dollar. The proposed change is contingent upon the legislature passing implementing legislation that defines how the CPI will be calculated, and the amendment would be submitted to voters for approval at a future general election. By tying the veterans' property tax deduction to the CPI, the resolution aims to help veterans maintain the real value of their tax relief over time as the cost of living changes.

Committee Categories

Military Affairs and Security

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Military and Veterans' Affairs Committee (on 09/19/2024)
(1 Companion Bills)

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Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2024/SCR113
BillText https://pub.njleg.gov/Bills/2024/SCR/113_I1.HTM
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