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Bill > ACR159
NJ ACR159
NJ ACR159Proposes 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
03/24/2025
03/24/2025
In Committee
03/24/2025
03/24/2025
Crossed Over
Passed
Dead
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 joint resolution proposes a constitutional amendment to require the State of New Jersey to annually reimburse municipalities for property tax revenue lost due to providing a total property tax exemption to veterans with permanent and total service-connected disabilities. Currently, veterans with such disabilities can receive a 100% property tax exemption, but local governments (including municipalities, counties, and school districts) are not compensated for the lost tax revenue. This means the tax burden is shifted to other property owners, potentially increasing their property taxes. The proposed amendment would mandate that the State provide municipalities with reimbursement equal to the exact amount of property taxes that would have been collected from each tax-exempt property. Furthermore, municipalities would be required to distribute this reimbursement to each local entity (such as counties and school districts) that imposes property taxes, with each entity receiving the amount of taxes they would have collected from the exempt properties. The amendment aims to ensure that local governments are fully compensated for the veterans' property tax exemption, preventing potential financial strain on municipalities and other local taxing entities while continuing to support disabled veterans.
Committee Categories
Military Affairs and Security
Sponsors (2)
Last Action
Introduced, Referred to Assembly Military and Veterans' Affairs Committee (on 03/24/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/ACR159 |
| BillText | https://pub.njleg.gov/Bills/2024/ACR/159_I1.HTM |
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