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Bill

ACR 39

Proposes constitutional amendment to increase amount of veterans' property tax deduction based on annual increases in CPI.

2026-2027 Regular Session Introduced by Al Barlas and 4 co-sponsors

Increases NJ veterans’ property tax deduction by tying future amounts to CPI annually, starting 2026, with no year-to-year decreases and expanded survivor/disabled veteran benefits

Introduced, Referred to Assembly Military and Veterans' Affairs Committee
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WeVote Research Nonpartisan
Bill Summary · ACR 39

Summary of ACR 39 (NJ, Session 222)

Overview

  • Type: Concurrent Resolution proposing a constitutional amendment
  • Purpose: To increase the amount of the veterans’ property tax deduction in New Jersey, with annual adjustments tied to the Consumer Price Index (CPI)
  • Topic: Veterans’ property tax deduction; CPI-based adjustments; continuation and expansion of benefits
  • Current status: Introduced January 13, 2026; referred to Assembly Military and Veterans’ Affairs Committee
  • Sponsors: Primary sponsor not listed; co-sponsors include Gerry Scharfenberger, Al Barlas, Dawn Fantasia, Brian Rumpf, Jay Webber

What the bill would do

The resolution amends Article VIII, Section I, paragraph 3 of the New Jersey Constitution to:
1. Increase the baseline veterans’ property tax deduction from $250 (currently in place since 2003) and tie future adjustments to the CPI.
2. Extend and define how the CPI-based adjustments would apply beginning tax year 2026 and thereafter.
3. Expand mechanisms for survivors and disabled veterans to retain or receive enhanced deductions.
4. Introduce a provision about continuing care retirement communities (CCRCs) on behalf of eligible veterans.

Key Provisions (substantive changes)

  • Baseline deduction:

    • For tax years 2003–2025, the veteran’s property tax deduction remains $250 (existing law).
    • For tax year 2026, the deduction is adjusted in proportion to the annual percentage increase in the CPI that occurred for each tax year from 2003 through 2025.
    • Beginning tax year 2027 and thereafter, the deduction is adjusted annually in proportion to the annual CPI increase for each tax year.
    • Any increases are rounded to the nearest higher whole dollar; the deduction cannot decrease in any year.
    • CPI is defined as “as provided by law” (definition to be established by implementing legislation).

  • Eligibility enhancements and survivors:

    • Veterans who are honorably discharged or released under honorable circumstances qualify for the deduction (as currently framed).
    • Veterans with service-connected disabilities (as determined by the U.S. Department of Veterans Affairs) qualify for an additional deduction provided by law.
    • Surviving spouses of veterans who died on active duty or who died after honorable service continue to be entitled to the deduction during widowhood/widowerhood while residents of New Jersey, with continued eligibility and potential for “further deductions as provided by law.”

  • Continuing Care Retirement Communities (CCRCs):

    • CCRCs may receive a veterans’ property tax deduction on behalf of eligible veterans.
    • The deduction amount for a resident in a CCRC is calculated as:
    • The dollar amount of the deduction times the number of eligible veterans who were receiving the deduction prior to moving into the CCRC.
    • If a veteran is a resident of a CCRC, the deduction is allocated to the resident to the extent of the resident’s share of the taxes attributable to the unit they occupy.
    • CCRCs must provide that amount as a payment or credit to the resident within 30 days after receiving the property tax bill showing the deduction.
    • A veteran living in a property-tax-exempt CCRC cannot receive the deduction on behalf of that property.
    • A resident receiving CCRCs payment/credit cannot claim the deduction for other residences they own or where their spouse lives.

  • Prohibition on double counting:

    • A resident receiving CCRCs payment/credit for the deduction cannot simultaneously claim the deduction for another residence or the spouse’s residence.

Affected Parties

  • Eligible veterans (and their surviving spouses) in New Jersey who own real or personal property or live in certain housing arrangements.
  • Residents of continuing care retirement communities (CCRCs) and CCRCs themselves (as administrators) who interact with the veterans’ deduction.
  • Local property taxpayers and homeowners could see changes in their property tax bills if the CPI-based adjustments alter the deduction amounts.
  • State implementing agencies will need to define “Consumer Price Index” and administer the CPI-based adjustments through implementing legislation.

Procedural and Timeline Aspects

  • Effective date and ballot: If enacted, the amendment would be submitted to voters at the next general election occurring more than three months after final agreement, with publishing requirements specified.
  • Initial implementation: The increased deduction would first take effect for tax year 2026, using CPI increases from 2003–2025.
  • Ongoing updates: Beginning with tax year 2027, annual CPI-based adjustments would apply.
  • Ballot wording: The measure would present voters with a Yes/No question on increasing the veterans’ property tax deduction based on CPI increases, and would include an interpretive statement explaining CPI and the proposed changes.

Practical Impact

  • The bill aims to protect veterans and their families from inflation-related erosion of the deduction by tying it to CPI changes annually.
  • It provides a more robust, inflation-responsive benefit while ensuring the deduction cannot decrease in any year, and clarifies administration for CCRCs.
  • The actual magnitude of the impact will depend on CPI trends and on implementing legislation defining the CPI metric and related administrative rules.

Compiled from official sources — confirm details with the bill’s official record.

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