SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE
STATEMENT TO
SENATE, No. 522
STATE OF NEW JERSEY
DATED: MAY 9, 2022
The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 522.
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 30 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.
As under current law, the bill allows the 100 percent property tax exemption to extend to the surviving spouse of a veteran. However, the newly allowed property tax exemption for a veteran with a less than 100 percent property tax exemption would not extend to the surviving spouse.
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.
This bill was pre-filed for introduction in the 2022-2023 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.