ASSEMBLY MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 3169

STATE OF NEW JERSEY

DATED:  MARCH 17, 2025

      The Assembly Military and Veterans' Affairs Committee reports favorably Assembly Bill No. 3169 ACS.

      This committee substitute allows veterans with a service-connected disability to receive a property tax rebate from the State in proportion to the percentage of their service-connected disability in certain circumstances.

      In this State, approximately 73 percent of veterans identify as having a disability, and this population is recognized as experiencing higher rates of unemployment and homelessness in comparison to the general population.  New Jersey’s high property taxes and rental costs exacerbate the financial burdens of disabled veterans, hindering their ability to live in New Jersey.  Approximately 518 veterans are homeless in this State, accounting for about 5 percent of the unhoused adult population.

      The substitute provides property tax relief to veterans who have a disability rating of less than 100 percent total and permanent disability.  Current law provides that veterans with a disability rating of 100 percent total and permanent disability are exempt from paying property taxes.

      Veterans with a service-connected disability are assigned a disability rating, which may range from 0 percent to 100 percent, by the United States Department of Veterans’ Affairs.  Under the substitute, the assigned rating will determine the percentage of property taxes paid that the veteran will be allowed as a rebate.

      Funding for the rebate allowed by this substitute is dependent on annual appropriations by the Legislature.

      The substitute provides that, if a disabled veteran is 65 years of age or older and also qualifies for property tax relief under the Stay NJ program, and the combined relief under the revisions to the Stay NJ program is greater than the amount of the rebate, then the rebate is disallowed.  If the combined relief is equal to or less than the rebate, then both the rebate and the combined relief are permitted, except that the total sum of benefits received may not exceed 50 percent of the veteran’s tax bill and is capped at the maximum value permitted by the revisions to the Stay NJ program.

      If a disabled veteran is less than 65 years of age or rents their property, and also qualifies for property tax relief under the ANCHOR program, the homestead property tax reimbursement program, commonly known as “Senior Freeze”, or both, the veteran will be entitled to the greatest of the ANCHOR benefit, the rebate and Senior Freeze, or the rebate.

      The substitute caps the rebate at $5,000 and limits availability of the rebate to veterans with a gross income of up to $200,000.  Under the substitute, the amount of the rebate cannot exceed the amount of property taxes paid.

      The substitute provides that the rebate will not impact or reduce a veteran’s ability to receive the constitutional veterans’ property tax deduction or the constitutional senior and disabled citizens’ property tax deduction and vice versa.

      The substitute also amends current law to require that the application for the rebate be included in the combined property tax relief application created through the revisions to the Stay NJ program, which permit persons age 65 and over to apply for State property tax relief through a single form.