LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE CONCURRENT RESOLUTION No. 100
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: AUGUST 6, 2025
SUMMARY
|
Synopsis: |
Proposes constitutional amendment to provide property tax exemption for primary residence owned and occupied by surviving spouse of first responder who dies while performing regular or assigned duties. |
|
Type of Impact: |
Potential annual local revenue loss. |
|
Agencies Affected: |
Local taxing districts. |
|
Office of Legislative Services Estimate |
||
|
Fiscal Impact |
Calendar Year 2027 & Thereafter |
|
|
Potential Annual Local Revenue Loss |
Up to $1.5 million |
|
|
|
|
|
· The Office of Legislative Services (OLS) concludes that approval of the concurrent resolution could result in a collective revenue loss to local taxing districts (i.e., counties, municipalities, school districts, and fire districts) of up to $1.5 million annually. However, the OLS anticipates that local taxing districts will recover the cost of the property tax exemption from other taxpayers within the taxing district.
· The OLS notes that local budgetary decisions that determine annual changes in property tax levies are affected by multiple factors.
· The OLS estimates that about 140 to 150 surviving spouses would be eligible for the property tax exemption beginning in calendar year 2027. This estimate is based on data available through the New Jersey Department of the Treasury, the United States Bureau of Labor Statistics, and the National Registry of Emergency Medical Technicians.
BILL DESCRIPTION
The proposed constitutional amendment would provide a property tax exemption for the primary residence owned and occupied by the surviving spouse of a first responder who dies as a direct result of performing regular or assigned duties. The surviving spouse of a law enforcement officer, paid or volunteer firefighter, or paid or volunteer first aid, ambulance, or rescue squad member would be eligible for the property tax exemption. The property for which the exemption is granted is required to have been the primary residence of the first responder at the time of their death.
A surviving spouse may receive the property tax exemption for as long as the spouse owns and occupies the home as a primary residence and does not remarry. However, the property tax exemption would not be provided to the surviving spouse of a first responder who dies as a result of the first responder’s own willful negligence. The property tax exemption would not be provided to a surviving spouse who did not cohabit with the first responder at the time of their death under circumstances which would have given rise to a cause of action for divorce.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that approval of the concurrent resolution could result in a collective revenue loss to local taxing districts (i.e., counties, municipalities, school districts, and fire districts) across the State of up to $1.5 million annually. However, the OLS anticipates that local taxing districts will recover the cost of the property tax exemption from other taxpayers within the taxing district. The OLS estimates that about 140 to 150 surviving spouses would be eligible for the property tax exemption beginning in calendar year 2027.
Under current law, the primary residence owned and occupied by the surviving spouse of a first responder is subject to property taxation at its full value. If the constitutional amendment is approved by the voters, these properties would be exempt from taxation so long as the surviving spouse remains unmarried. The exemption of these properties from taxation will result in reduction in the total value of property subject to taxation, also known as the net valuation taxable. In order to raise the same amount of property tax revenue from the reduced property tax base, local taxing districts will be required to increase property tax rates, all other things being equal. The OLS notes that the total property tax revenue received by a taxing district is based on the district’s property tax levy, which is determined based on local budgetary decisions affected by multiple factors, such as the provisions of labor contracts, costs of goods and services, levels of local non-property tax revenues, and debt service requirements.
According to information publicly available through the State of New Jersey Transparency Center, an average of 125 survivors of members of the Police and Firemen’s Retirement System and State Police Retirement System received accidental death benefit payments in each calendar year from 2017 through 2022. Accidental death benefits are paid to the eligible survivors of the retirement system members who die as a result of an accident during the performance of their regular or assigned duties, and the death was not the result of willful negligence on the part of the deceased. In response to an FY 2020 OLS Discussion Point, the Department of the Treasury anticipated that 16 survivors of volunteer emergency workers were receiving a Volunteer Emergency Workers Survivors’ Pension, which is a State-funded pension provided to the surviving dependents of a volunteer firefighter, first aid worker, rescue squad worker, or emergency medical technician killed while performing volunteer duties during an emergency, including during travel to and from the emergency site.
Data on the number of paid members of a first aid, ambulance, or rescue squad who have died while performing their regular or assigned duties is not readily available. Using data available through the Office of Emergency Medical Services in the Department of Health, the National Registry of Emergency Medical Technicians, and the Census of Fatal Occupational Injuries compiled by the United States Bureau of Labor Statistics, the OLS estimates that one paid member of a first aid, ambulance, or rescue squad dies each year while performing their regular or assigned duties.
In sum, 142 surviving spouses are estimated to comprise the potential population of homeowners who may be eligible for a property tax exemption. However, the actual number of property owners who receive the property tax exemption may be lower to the extent that some surviving spouses may have remarried, thereby losing eligibility for the exemption. The OLS estimates that the average residential Statewide property tax bill will be $10,719 in calendar year 2027, and assuming the estimated maximum of 142 eligible surviving spouses throughout the State, concludes there could be a collective revenue loss to local taxing districts of up to $1.5 million in calendar year 2027. However, the OLS anticipates that local taxing districts will recover the cost of the property tax exemption from other taxpayers within the taxing district.
This fiscal estimate presumes that the proposed constitutional amendment will be submitted by the Legislature to the voters for approval at the November 2026 general election. If the proposed constitutional amendment is approved, it will take effect in December 2026 and eligible surviving spouses will receive the property tax exemption in tax year 2027.
|
Section: |
Revenue, Finance, and Appropriations |
|
Analyst: |
Staff Fiscal and Budget Analyst |
|
Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).