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NJ SCR84
NJ SCR84Proposes 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
02/05/2026
02/05/2026
In Committee
02/05/2026
02/05/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 an amendment to the State Constitution to ensure that the State annually reimburses municipalities for the full amount of property tax revenue lost when providing a 100 percent property tax exemption to veterans who have permanent and total service-connected disabilities. Currently, these veterans can receive a complete exemption from property taxes, but municipalities are not compensated by the State for this lost revenue, which can shift the tax burden to other property owners. Under this proposed amendment, the State would provide funds to municipalities equal to the property taxes that would have been collected on these exempt properties, and municipalities would then be required to distribute these funds to counties, school districts, and other local taxing entities that also lose revenue due to these exemptions.
Committee Categories
Housing and Urban Affairs
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 02/05/2026)
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/2026/SCR84 |
| BillText | https://pub.njleg.gov/Bills/2026/SCR/84_I1.HTM |
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