New Jersey Assembly Bill A458

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Authorizes proportional property tax exemption for honorably discharged veterans having service-connected permanent disability; extends eligibility to veterans suffering from mental illness; establishes eligibility of property owned by disabled veteran with surviving partner for exemption.

Impact

The bill also extends eligibility for the property tax exemption to veterans whose disabilities are attributed to mental health issues. This inclusion acknowledges the growing recognition of mental health as a critical component of veterans' welfare and ensures that those suffering from conditions like PTSD are afforded the same financial support as those with physical injuries. Additionally, the bill clarifies that property owned by surviving partners of disabled veterans will continue to qualify for exemptions, providing financial stability to families of veterans.

Summary

Assembly Bill A458 aims to enhance the property tax exemption benefits for honorably discharged veterans with service-connected permanent disabilities. Under the existing law, only those veterans with a 100 percent disability rating receive complete tax exemptions. A458 proposes allowing all eligible veterans, regardless of their disability rating percentage, to receive a proportional property tax exemption tied to their level of disability, as established by the U.S. Department of Veterans Affairs. This change is significant as it broadens the financial relief available to veterans who may not have been considered fully disabled yet still have substantial service-connected impairments.

Contention

Key points of contention surrounding A458 focus on the bill's fiscal implications and the potential increase in the tax burden on municipalities. Critics may argue that extending exemptions could lead to a significant decrease in tax revenues for local governments, which may affect public services and infrastructure funding. Supporters, however, emphasize that this bill is a necessary step toward recognizing the sacrifices made by veterans and providing them with the support they deserve, especially as mental health needs become increasingly prominent. The balance between providing veterans with necessary support and maintaining municipal revenue remains a central issue in discussions surrounding the bill.