Bill
SCR 24
The bill would raise the veterans’ property tax deduction in New Jersey and adjust it annually for CPI increases starting in 2026, with no year-to-year reductions.
SCR 24 (Session 222) – New Jersey
Summary of proposed constitutional amendment increasing the veterans’ property tax deduction based on CPI
Purpose and intent
- Objective: To amend the New Jersey Constitution to increase the annual veterans’ property tax deduction, tying the amount to changes in the Consumer Price Index (CPI).
- The increased deduction would start in tax year 2026 (with a computation based on CPI changes from 2003–2025) and would be annually adjusted thereafter based on the CPI.
Key provisions and changes
- Baseline deduction:
- Currently: Eligible veterans receive a $250 annual deduction from property taxes on real property (including taxes on a residential unit held by a stockholder in a cooperative or mutual housing corporation).
- Surviving spouses of qualifying veterans have related entitlements to the deduction during widowhood/widowerhood, and for certain service-connected death scenarios.
- CPI-based adjustment (new framework):
- For tax year 2026: The deduction would be increased by the total annual percentage increases in the CPI that occurred for each tax year from 2003 through 2025. The 2026 amount would be rounded to the next highest $1 increment.
- For tax years 2027 onward: The deduction would be adjusted annually in proportion to the annual CPI increase for that tax year; increases are rounded to the next dollar.
- The deduction shall not decrease in any tax year, even if CPI declines in that year.
- The CPI definition used for calculating increases would be defined by law (implementation details to be provided in implementing legislation).
- Continuing care retirement communities (CCRCs) provision:
- CCRCs could receive a veterans’ property tax deduction on behalf of eligible veterans. The amount would be the deduction amount multiplied by the number of eligible veterans already receiving the deduction before moving into the CCRC.
- A resident eligible for the deduction would receive the deduction to the extent of the share of property taxes attributable to their unit within the CCRC, paid as a credit or payment to the resident within 30 days of the property tax bill.
- A veteran living in a tax-exempt CCRC cannot receive the deduction through the CCRC. A resident benefiting from the CCRC arrangement would not receive the deduction on any other residence (including spouse’s residence).
- Surviving spouses:
- The surviving spouses of veterans who die on active duty or who are deceased with service-connected conditions retain entitlements to the deduction during widowhood/widowerhood, while residents of the state.
- Protection of the deduction:
- The amendment explicitly prohibits reduction of the deduction in any year and requires adjustments to be based on CPI increases.
- Additional provisions:
- The amendment is contingent on implementing legislation to define CPI for purposes of the increases beginning in 2026.
- The measure would not be altered or repealed by other acts; it is a constitutional amendment.
Procedural and timelines
- Source: Concurrent Resolution proposing an amendment to Article VIII, Section I, paragraph 3 of the New Jersey Constitution.
- Intro/intent: Introduced January 13, 2026; referred to Senate Military and Veterans’ Affairs Committee.
- voter consideration: If agreed to by the Legislature, the amendment would be placed on the ballot at the next general election occurring more than three months after final agreement, with publication requirements in newspapers at least three months prior to the election.
- Ballot format: The ballot would include a Yes/No question asking voters to approve increasing the veterans’ property tax deduction based on CPI, noting that the increased deduction would first take effect for tax year 2026 and thereafter be adjusted annually.
Sponsors
- Primary: Senator Parker Space (co-sponsor)
- Co-sponsors: Senator Bob Singer
Potential impact (highlights)
- For veterans and surviving spouses: A higher, CPI-adjusted annual property tax deduction beginning in 2026, with protections against year-to-year reductions.
- For CCRCs: Mechanism to provide the deduction to eligible veterans within the community, subject to unit-specific tax shares and timely payment/credit to residents; interacts with tax-exempt CCRCs.
- Administrative: Requires implementing legislation to define CPI and outline administration, including annual calculations, rounding, and payment/credit processes.
Notes
- The proposal aims to modernize the veterans’ deduction to reflect inflation and cost-of-living changes since 2003, while maintaining baseline protections against reductions in any tax year.
Compiled from official sources — confirm details with the bill’s official record.
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