Summary of Bill A 2939 (Session 222, New Jersey)
Purpose
- Establish an annual property tax deduction aimed at honorably discharged veterans who have a service-connected disability rating less than 100 percent. The bill preserves the existing 100 percent disability exemption for veterans rated at 100 percent and adds a new deduction up to $5,000 for those with less-than-100-percent ratings.
Key Provisions and Changes
- Eligibility for the new deduction (Section 1a(2)):
- For honorably discharged veterans with a service-connected disability rating of less than 100 percent (and not solely due to hospitalization, surgery, recuperation, enemy action, accident, or disease contracted during service), there would be an annual deduction from real property taxes of up to $5,000 in a tax year.
- If the veteran’s annual property tax bill is less than $5,000, the entire bill would be canceled.
- Existing 100% disability exemption preserved (Section 1a(1)):
- Veterans with a total service-connected disability (100% rating) continue to receive the current tax exemption, in addition to any other exemptions allowed by law.
- Provisions for survivors (Sections 1b–1e):
- Surviving spouses of veterans who qualified for the exemption would receive the same exemption during widowhood/widowerhood and while occupying a dwelling they own in New Jersey.
- If a veteran died in active service, the surviving spouse is entitled to the exemption for widowhood/widowerhood and occupancy of the dwelling.
- For veterans who died before January 10, 1972, the surviving spouse may receive a comparable exemption if the veteran would have qualified under the law in effect at that time.
- Administrative rules for cooperative/mutual housing (Section 2):
- Tenant shareholders in cooperatives or mutual housing corporations may receive the exemption to the extent of their proportionate share of taxes.
- Regulations would require disclosure of location and taxes attributed to the unit, ensuring the disabled veteran or surviving spouse is the sole beneficiary of the exemption.
- If the proportionate share’s tax is under $5,000, that amount is canceled for the tenant shareholder.
- Claims process (Section 3):
- Exemptions are claimed by filing a written oath with the assessor, including discharge documentation and VA disability certification.
- Surviving spouses must demonstrate ownership, reside in New Jersey, and other qualifying conditions.
- If a portion of a multi-family building is exempted, the exemption is prorated by the share of the building occupied by the claimant.
- Reimbursement to tax districts (Section 5):
- The State Treasurer must annually reimburse each taxing district an amount equal to 102 percent of the total property tax deduction granted under the bill.
- Effective date (Section 6):
- The act would take effect on January 1 of the year following enactment.
Impact and Considerations
- Financial impact on taxpayers: Provides an additional deduction up to $5,000 for qualifying disabled veterans with ratings below 100%, supplementing the existing $250 veterans’ deduction.
- Local government funding: Requires annual 102% reimbursement to taxing districts to offset the deductions.
- Coverage: Extends to individual veterans and surviving spouses, including those in cooperatives/mmutual housing contexts, with prorating rules for partial ownership or occupancy.
- Administrative burden: Adds reporting and documentation requirements for claims and cooperative housing units to confirm eligibility and prevent double-benefits.
Sponsor and Action
- Primary sponsor: Assemblymember (co-sponsors listed: Aura Dunn, Al Barlas, Don Guardian, Alex Sauickie)
- Introduced January 13, 2026; referred to Assembly State and Local Government Committee.
