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Bill > A273
NJ A273
NJ A273Requires State reimbursement to municipalities of cost of disabled veterans' total property tax exemption.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill would require the State to annually reimburse each municipality for the cost of complying with the State mandate of affording disabled veterans with a total exemption from property taxation. The bill would require the State to cover the cost of the actual taxes exempted plus the administrative costs incurred by municipalities in connection with the reimbursement program. Under current law, each municipality must individually make up for any lost revenue resulting from a parcel of property being exempted from property taxation because of its ownership by a disabled veteran. This often results in an increase in taxes to other property taxpayers in the municipality or a reduction in municipal services. Because the number of qualifying disabled veterans varies from municipality to municipality, compliance with the State policy to exempt disabled veterans' property taxes impacts upon some municipalities more greatly than on others resulting in inequity. This bill would put an end to that inequity by having the State reimburse each municipality for the cost of complying with the State mandate of affording disabled veterans with a total exemption from property taxation.
AI Summary
This bill mandates that the State will annually reimburse each municipality for 102% of the property tax revenue lost due to providing a total property tax exemption to disabled veterans, a program established by a previous law (P.L.1948, c.259). This reimbursement will cover both the actual taxes exempted and administrative costs incurred by municipalities. Currently, municipalities must absorb these costs themselves, which can lead to increased taxes for other residents or reduced municipal services, creating inequities because the number of qualifying veterans varies by town. To facilitate this reimbursement, tax assessors will report the number and value of these exemptions to county tax boards, which will then certify this information to the State's Director of the Division of Taxation. The bill also amends existing law (R.S. 54:4-52) to ensure that the number and total amount of disabled veterans' property tax exemptions are included in the official "table of aggregates" prepared by county tax boards, but this amount will not be used to calculate the tax rate, thus preventing it from directly increasing the tax burden on other property owners. The Director of the Division of Taxation will have the authority to inspect relevant records and create regulations to implement these changes.
Committee Categories
Military Affairs and Security
Sponsors (2)
Last Action
Introduced, Referred to Assembly Military and Veterans' Affairs Committee (on 01/13/2026)
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/2026/A273 |
| BillText | https://pub.njleg.gov/Bills/2026/A0500/273_I1.HTM |
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