A5981

An Act concerning eligibility for the disabled veterans’ property tax exemption, and amending P.L.1948, c.259.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1948, c.259 (C.54:4-3.30) is amended to read as follows:

1. a. The dwelling house and the lot or curtilage whereon the same is erected, of any citizen and resident of this State, now or hereafter honorably discharged or released under honorable circumstances, from active service in any branch of the Armed Forces of the United States, who has been or shall be declared by the United States Department of Veterans' Affairs or its successor to have a service-connected disability from paraplegia, sarcoidosis, osteochondritis resulting in permanent loss of the use of both legs, or permanent paralysis of both legs and lower parts of the body, or from hemiplegia and has permanent paralysis of one leg and one arm or either side of the body, resulting from injury to the spinal cord, skeletal structure, or brain or from disease of the spinal cord not resulting from any form of syphilis; or from total blindness; or from amputation of both arms or both legs, or both hands or both feet, or the combination of a hand and a foot; or from other service-connected disability declared by the United States Veterans Administration or its successor to be a total or 100 percent permanent disability, and not so evaluated solely because of hospitalization or surgery and recuperation, sustained through enemy action, or accident, or resulting from disease contracted while in such active service, shall be exempt from taxation, on proper claim made therefor, and such exemption shall be in addition to any other exemption of such person's real and personal property which now is or hereafter shall be prescribed or allowed by the Constitution or by law but no taxpayer shall be allowed more than one exemption under this act.

b. (1) The surviving spouse of any such citizen and resident of this State, who at the time of death was entitled to the exemption provided under this act, shall be entitled, on proper claim made therefor, to the same exemption as the deceased had, during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the said dwelling house or any other dwelling house thereafter acquired.

(2) The surviving spouse of any citizen and resident of this State who was honorably discharged and, after the citizen and resident's death, is declared to have suffered a service-connected disability as provided in subsection a. of this section, shall be entitled, on proper claim made therefor, to the same exemption the deceased would have become eligible for. The exemption shall continue during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the dwelling house or any other dwelling house thereafter acquired.

c. The surviving spouse of any citizen and resident of this State, who died in active service in any branch of the Armed Forces of the United States, shall be entitled, on proper claim made therefor, to an exemption from taxation on the dwelling house and lot or curtilage whereon the same is erected, during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the said dwelling or any other dwelling house thereafter acquired.

d. The surviving spouse of any citizen and resident of this State who died prior to January 10, 1972, that being the effective date of P.L.1971, c.398, and whose circumstances were such that, had said law become effective during the deceased's lifetime, the deceased would have become eligible for the exemption granted under this section as amended by said law, shall be entitled, on proper claim made therefor, to the same exemption as the deceased would have become eligible for upon the dwelling house and lot or curtilage occupied by the deceased at the time of death, during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the said dwelling house on the premises to be exempted.

e. Nothing in this act shall be intended to include paraplegia or hemiplegia resulting from locomotor ataxia or other forms of syphilis of the central nervous system, or from chronic alcohol use disorder, or to include other forms of disease resulting from the veteran's own misconduct which may produce signs and symptoms similar to those resulting from paraplegia, osteochondritis, or hemiplegia.

f. For purposes of this section, “surviving spouse” means the surviving wife, husband, or domestic partner of the decedent, while the person is a resident of this State and during the person’s widowhood or widowerhood, and including a person with a close personal relationship to the decedent who:

(1) shared a common residence with the decedent for a period of at least three consecutive years immediately preceding the death of the decedent;

(2) was jointly responsible with the decedent for each other’s common welfare, as evidenced by:

(a) joint ownership of the dwelling house for which the exemption is claimed; and

(b) at least one of the following criteria:

(i) joint bank accounts or credit accounts with the decedent;

(ii) designation of the person as a primary beneficiary in the decedent’s will;

(iii) designation of the person as a primary beneficiary in the decedent’s life insurance policy or retirement plan; or

(iv) joint ownership of a motor vehicle with the decedent;

(3) was not married to any other person and was not a member of a civil union or domestic partnership with another person at the time of the decedent’s death;

(4) has not married or entered into a civil union or domestic partnership with another person after the death of the decedent; and

(5) submits with the claim for an exemption filed pursuant to section 2 of P.L.1948, c.259 (C.54:4-3.31) an affidavit, signed under penalty of perjury, attesting to the facts required under paragraphs (1) through (4) of this subsection, and any documentation the director may require in support of the affidavit.

(cf: P.L.2023, c.177, s.150)

2. This act shall take effect immediately.

STATEMENT

This bill expands the definition of “surviving spouse” for purposes of the disabled veterans’ property tax exemption to include certain individuals with a close personal relationship to the deceased veteran.

Current law provides a 100 percent property tax exemption on dwelling houses for honorably discharged veterans who have been declared by the United States Department of Veterans’ Affairs to have certain service-connected disabilities, including paraplegia, total blindness, amputation of limbs, or other disabilities resulting in total or 100 percent permanent disability. This exemption applies to the dwelling house and lot or curtilage where it is erected, and the veteran is required to be a citizen and resident of this State. The exemption continues for the surviving spouse of an eligible veteran during the surviving spouse’s widowhood or widowerhood, provided the surviving spouse remains a New Jersey resident, legally owns the property, and actually occupies the dwelling house. However, this benefit is currently limited to legally married surviving spouses.

This bill expands the statutory definition of “surviving spouse” to include a person with a close personal relationship to the deceased veteran who meets specific eligibility criteria. To qualify as a “surviving spouse” under the expanded definition, the person is required to demonstrate that he or she: (1) shared a common residence with the deceased veteran for at least three consecutive years immediately preceding the veteran's death; (2) was jointly responsible with the deceased veteran for each other's common welfare, as evidenced by joint ownership of the dwelling house for which the exemption is claimed and at least one additional indicator of joint financial responsibility, such as joint bank or credit accounts, designation as primary beneficiary in the decedent's will or life insurance policy or retirement plan, or joint ownership of a motor vehicle; (3) was not married to another person and was not a member of a civil union or domestic partnership with another person at the time of the veteran's death; and (4) has not married or entered into a civil union or domestic partnership with another person after the death of the veteran.

The bill requires that a person seeking to claim the exemption under the expanded definition submit an affidavit, signed under penalty of perjury, attesting to meeting all eligibility requirements, along with any additional documentation required by the Director of the Division of Taxation to support the affidavit. This documentation may include proof of shared residence, evidence of joint financial responsibility, and other materials demonstrating the close personal relationship and shared common welfare with the deceased veteran.