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A 941

Relates to registration fees for certain motor vehicles; repealer

2025 Regular Session Introduced by Rodneyse Bichotte Hermelyn and 6 co-sponsors

The bill grants a retroactive full property tax exemption to veterans 100% permanently disabled by the VA, refunds taxes paid after the VA date, and requires state reimbursement to

PRINT NUMBER 941A
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Bill Summary · A 941

Summary — Assembly Bill A941 (Print No. 941A)

Title: Relates to registration fees for certain motor vehicles; repealer (formal caption/amendments concern property tax exemption for permanently and totally disabled veterans)

Note: Although the bill title references registration fees/repealer, the substantive text and committee reports amend P.L.1948, c.259 (C.54:4-3.30 et seq.) to change the property tax exemption rules for permanently and totally disabled veterans.

Main purpose

To make the New Jersey property tax exemption for permanently and totally disabled veterans retroactive to the effective date of the United States Department of Veterans’ Affairs (VA) determination of total disability, require municipal governing bodies to return property taxes collected after that date, and require the State to reimburse municipalities for taxes returned under the law.

Key provisions

  • Retroactive exemption: The dwelling and curtilage of a veteran declared by the U.S. Department of Veterans’ Affairs to be totally (100%) and permanently disabled are exempt from property taxation retroactive to the effective date of the VA’s determination of total disability (rather than only from the date a municipal exemption claim is filed).
  • Claims and documentation: Existing filing requirements remain — a written, sworn claim to the municipal assessor with a certificate of honorable discharge and VA certification of the service‑connected disability. The bill explicitly states that an application "shall be retroactive to the effective date of the determination of total disability by the United States Department of Veterans’ Affairs."
  • Municipal refunds and State reimbursement:
    • Municipal governing bodies must return (refund) property taxes collected from the veteran on the property for the period after the VA’s effective determination date.
    • The State is required to reimburse municipalities for the amounts they return to totally disabled veterans under this law.
  • Surviving spouse provisions and exclusions: The bill continues existing rules that allow surviving spouses to claim the exemption under specified conditions. It preserves exclusions (e.g., paralysis due to syphilis, chronic alcohol use disorder, or other misconduct-related conditions).

Who is affected

  • Primary beneficiaries: New Jersey veterans who have been declared totally (100%) and permanently disabled by the VA — they become eligible for a retroactive full property tax exemption and potential refunds for taxes paid after the VA determination.
  • Surviving spouses of eligible veterans (under existing statutory rules) may benefit similarly where applicable.
  • Municipalities: required to identify affected properties, issue refunds for taxes collected after the VA determination date, and coordinate reimbursement from the State.
  • State of New Jersey: fiscal exposure because it must reimburse municipalities for refunded taxes.

Procedural status & sponsors

  • Introduced: 1/9/2024 (Assembly)
  • Committees/Actions:
    • Referred to Assembly Military and Veterans’ Affairs Committee (1/9/2024)
    • Reported favorably by that committee (2/13/2025)
    • Reported favorably by Assembly State and Local Government Committee (3/20/2025)
    • Reported and referred to Assembly Appropriations Committee (3/20/2025)
    • Print No. 941A issued (2/19/2025)
  • Primary sponsor: Assemblyman Zohran Mamdani. Cosponsors include Sarahana Shrestha, Dana Levenberg, Jessica Gonzalez‑Rojas, Tony Simone, Claire Valdez, Rodneyse Bichotte Hermelyn.
  • Related/companion bills: S313, S3957; prior-session A7978.

Potential impact / considerations

  • Financial: The State will incur costs equal to the aggregate refunds municipalities return to veterans for the retroactive exemption period. The size of this fiscal impact depends on the number of eligible veterans and the time periods for which refunds are claimed.
  • Administrative: Municipal assessors/treasurers must process retroactive claims and refunds, and coordinate reimbursement requests with the State. There may be increased workload and record‑verification needs (confirming VA determination effective dates).
  • Equity: Provides veterans who obtain VA determinations after paying property taxes an ability to recover taxes paid after the VA’s effective determination date.

If you want, I can prepare a short fiscal-note outline estimating potential state and municipal cost drivers or draft a plain‑language explanation for veterans on how to file a retroactive claim under this bill.

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

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