Bill

Bill > A637


NJ A637

NJ A637
Authorizes proportional property tax exemption for honorably discharged veterans having a service-connected permanent disability and proclaims that the State shall reimburse municipalities for cost of exemption.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

The bill grants a property tax exemption to honorably discharged veterans having a service-connected disability in proportion to their disability percentage rating. The exemption is only granted to those with a disability percentage rating of at least 10 percent, and the exemption is capped at $10,000. Those with a 100 percent disability percentage rating would still be allowed a 100 percent property tax exemption without a cap, as is the case under current law. In addition, the bill grants those honorably discharged veterans having less than a 100 percent service-connected disability, but who are unemployable, a 100 percent property tax exemption, which matches the current 100 percent property tax exemption for honorably discharged veterans having a 100 percent disability percentage rating. The bill also eliminates all references to medical conditions so that any service-connected disability, as determined by the United States Department of Veterans' Affairs, will make a veteran eligible for the property tax exemption. Finally, the bill proclaims that the State shall annually reimburse taxing districts, including for administrative costs, for the property tax exemptions granted to disabled veterans and their surviving spouses. The bill includes reporting provisions so proper reimbursement can be made.

AI Summary

This bill expands property tax exemptions for honorably discharged veterans with service-connected disabilities, meaning disabilities incurred during military service as determined by the U.S. Department of Veterans' Affairs. Previously, exemptions were limited to specific severe conditions or a 100% disability rating, but this bill allows a proportional exemption based on the veteran's disability percentage, with a maximum exemption of $10,000 for those with less than a 100% rating. Importantly, veterans who are unemployable due to a service-connected disability, even if their rating is below 100%, will now receive a full 100% property tax exemption, aligning them with those who have a 100% disability rating. The bill also removes specific medical condition references, making any service-connected disability rating eligible. Furthermore, the State will now reimburse municipalities for the cost of these exemptions, including administrative expenses, to ensure local governments are not financially burdened by this expanded benefit, and includes reporting requirements to facilitate this reimbursement process.

Committee Categories

Military Affairs and Security

Sponsors (31)

Last Action

Introduced, Referred to Assembly Military and Veterans' Affairs Committee (on 01/13/2026)

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