New Jersey Senate Bill S522

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Report Pass: 5/9/22
• Refer: 5/9/22

Caption

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

Impact

The implementation of SB 522 is expected to positively impact state laws regarding property taxation for disabled veterans. It broadens eligibility for property tax exemptions to a wider group of veterans while maintaining critical benefits for those most severely affected by their service-related disabilities. By shifting the responsibility of offsetting the financial implications onto the state, which will reimburse municipalities for the exemptions, the bill aims to alleviate concerns from local governments regarding budgetary strains from property tax adjustments due to veteran exemptions.

Summary

Senate Bill 522 aims to establish a proportional property tax exemption for honorably discharged veterans with a service-connected disability in New Jersey. Under this bill, veterans with a disability percentage rating of at least 30 percent will qualify for a property tax exemption proportional to their disability rating, capped at $10,000. Furthermore, veterans deemed unemployable due to a service-connected disability will receive a 100 percent property tax exemption, bringing their benefits in line with those who have a 100 percent disability rating. This proposal seeks to enhance financial support for veterans and their families through tax relief.

Contention

Despite its merits, the bill has been met with some contention among different stakeholders. Critics express concern that while the bill aims to support disabled veterans, it could burden state finances over time due to the reimbursement obligations to local municipalities. Additionally, the stipulation that the newly allowed exemptions for veterans with less than 100 percent disability will not extend to surviving spouses raises questions about equitable treatment for families of deceased veterans, potentially limiting the benefits that families could otherwise access.