A3953

An Act concerning the veterans’ property tax exemption and amending P.L.1948, c.259.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1948, c.259 (C.54:4-3.30) is amended to read as follows:

1. a. The dwelling house and the lot or curtilage whereon the same is erected, of any citizen and resident of this State, now or hereafter honorably discharged or released under honorable circumstances, from active service in any branch of the Armed Forces of the United States, who has been or shall be declared by the United States Department of Veterans' Affairs or its successor to have a service-connected disability from paraplegia, sarcoidosis, osteochondritis resulting in permanent loss of the use of both legs, or permanent paralysis of both legs and lower parts of the body, or from hemiplegia and has permanent paralysis of one leg and one arm or either side of the body, resulting from injury to the spinal cord, skeletal structure, or brain or from disease of the spinal cord not resulting from any form of syphilis; or from total blindness; or from amputation of both arms or both legs, or both hands or both feet, or the combination of a hand and a foot; or from other service-connected disability declared by the United States Veterans Administration or its successor to be a total or 100 percent permanent disability, and not so evaluated solely because of hospitalization or surgery and recuperation, sustained through enemy action, or accident, or resulting from disease contracted while in such active service, shall be exempt from taxation, on proper claim made therefor, and such exemption shall be in addition to any other exemption of such person's real and personal property which now is or hereafter shall be prescribed or allowed by the Constitution or by law but no taxpayer shall be allowed more than one exemption under this act.

b. (1) The surviving spouse of any such citizen and resident of this State, who at the time of death was entitled to the exemption provided under this act, shall be entitled, on proper claim made therefor, to the same exemption as the deceased had, during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the said dwelling house or any other dwelling house thereafter acquired.

(2) The surviving spouse of any citizen and resident of this State who was honorably discharged and, after the citizen and resident's death, is declared to have suffered a service-connected disability as provided in subsection a. of this section, shall be entitled, on proper claim made therefor, to the same exemption the deceased would have become eligible for. The exemption shall continue during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the dwelling house or any other dwelling house thereafter acquired.

c. The surviving spouse of any citizen and resident of this State, who died in active service in any branch of the Armed Forces of the United States, shall be entitled, on proper claim made therefor, to an exemption from taxation on the dwelling house and lot or curtilage whereon the same is erected, during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the said dwelling or any other dwelling house thereafter acquired.

d. The surviving spouse of any citizen and resident of this State who died prior to January 10, 1972, that being the effective date of P.L.1971, c.398, and whose circumstances were such that, had said law become effective during the deceased's lifetime, the deceased would have become eligible for the exemption granted under this section as amended by said law, shall be entitled, on proper claim made therefor, to the same exemption as the deceased would have become eligible for upon the dwelling house and lot or curtilage occupied by the deceased at the time of death, during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the said dwelling house on the premises to be exempted.

e. Nothing in this act shall be intended to include paraplegia or hemiplegia resulting from locomotor ataxia or other forms of syphilis of the central nervous system, or from chronic alcohol use disorder, or to include other forms of disease resulting from the veteran's own misconduct which may produce signs and symptoms similar to those resulting from paraplegia, osteochondritis, or hemiplegia.

f. (1) The State Treasurer shall reimburse municipalities, counties, school districts, and fire districts for the total amount of assessed property taxes that were not collectible from tax-exempt properties during the first tax year in which a person is approved for a property tax-exemption pursuant to this section.

(2) During any tax year in which a person has been approved for a property tax exemption pursuant to this section, the tax collector of the municipality in which the person resides shall provide the following documentation to the Director of the Division of Taxation in the Department of the Treasury: a copy of the resolution approved by the governing body of the municipality granting the property tax exemption; a copy of the person’s property tax bill for the tax year; and a certification of the amount of property taxes that would have been due and payable by the person for the municipality, county, school district, and fire district, respectively, during the remainder of the tax year following the date of approval of the exemption. This documentation shall be provided to the director not later than 10 days after the date of approval of the exemption.

(3) The State Treasurer shall reimburse each municipality, county, school district, and fire district not later than 10 calendar days following the due date of each quarterly property tax bill for which property taxes are no longer owed for the property.

(cf: P.L.2023, c.177, s.150)

2. The Director of the Division of Taxation in the Department of the Treasury shall promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the provisions of this act.

3. This act shall take effect on the first day of the ninth month next following the date of enactment, except that the Director of the Division of Taxation in the Department of the Treasury may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.

STATEMENT

This bill would require the State to reimburse local government units, including municipalities, counties, school districts for the assessed value of property taxes that are no longer collectible during the first year in which a person is approved for the 100 percent service-disabled veterans property tax exemption.

During any tax year in which a person is approved for the property tax exemption, the tax collector of the municipality in which the person resides, would be required to provide the Director of the Division of Taxation in the Department of the Treasury with the following documentation: a copy of the resolution approved by the governing body of the municipality granting the property tax exemption; a copy of the person’s property tax bill for the tax year; and a certification of the amount of property taxes that would have been otherwise due and payable by the person for each local government unit during the remainder of the tax year following the date of approval by the governing body of the exemption.

After this documentation is provided, the State Treasurer would be required to reimburse each local government unit not later than 10 calendar days following the due date of each quarterly tax bill for which property taxes are no longer owed for the property.