A2939

An Act providing an annual property tax deduction to honorably discharged veterans having a service-connected disability rating less than 100 percent, amending and supplementing P.L.1948, c.259, and amending P.L.2021, c.75.

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. (1) 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.

(2) 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, and who has been or shall be declared by the United States Department of Veterans' Affairs or its successor to have a service-connected disability declared by the United States Veterans Administration or its successor to be less than 100 percent 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 entitled to an annual deduction from the amount of any tax bill on real property owned by the citizen and resident, not to exceed $5,000 in any tax year. In the case of such a citizen and resident whose annual property tax bill in any tax year is less than $5,000, that tax bill shall be canceled.

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.

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

2. Section 2 of P.L.2021, c.175 (C.54:4-3.30a) is amended to read as follows:

2. For the purposes of P.L.1948, c.259 (C.54:4-3.30 et seq.) a tenant shareholder in a cooperative or mutual housing corporation shall be entitled to an exemption from taxation under that act only to the extent of his proportionate share of the taxes assessed against the real property of the corporation or any other entity holding title to that real property. The Director of the Division of Taxation in the Department of the Treasury shall promulgate regulations, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to: require that the application for the exemption shall include the name and address of the location of the property and the amount of real property taxes attributed to the cooperative unit or mutual housing residential unit; and ensure that the disabled veteran or surviving spouse, as the case may be, is the sole beneficiary of the disabled veterans' property tax exemption provided by P.L.1948, c.259 (C.54:4-3.30 et seq.).

In the case of a tenant shareholder who is qualified for a property tax deduction under paragraph (2) of subsection a. of section 1 of P.L.1948, c.259 (C.54:4-3.30), if the property tax on that person’s proportionate share is less than $5,000, that person’s property tax obligation shall be canceled.

(cf: P.L.2021, c.175, s.2)

3. Section 2 of P.L.1948, c.259 (C.54:4-3.31) is amended to read as follows:

2. All exemptions from taxation under [P.L.1948, c.259 (C.54:4-3.30 et seq.)] section 1 of P.L.1948, c.259 (C.54:4-3.30) shall be allowed by the assessor upon the filing with him of a claim in writing under oath, made by or on behalf of the person claiming the same, showing the right to the exemption, briefly describing the property for which exemption is claimed and having annexed thereto a certificate of the claimant's honorable discharge or release under honorable circumstances, from active service in any branch of the Armed Forces of the United States and a certificate from the United States Department of Veterans' Affairs or its successor, certifying to a service-connected disability of such claimant of the character described in section 1 of P.L.1948, c.259 (C.54:4-3.30). In the case of a claim by a surviving spouse of such veteran, the claimant shall establish in writing under oath that the claimant is the owner of the legal title to the premises on which exemption is claimed; that the claimant occupies the dwelling house on said premises as the claimant's legal residence in this State; that the veteran shall have been declared, either during the veteran's lifetime or after the veteran's death, by the United States Department of Veterans' Affairs to have or to have had a service-connected disability of a character described in this act, or, in the case of a claim for an exemption under subsection c. of section 1 of P.L.1948, c.259 (C.54:4-3.30), that the veteran shall have been declared to have died in active service; that the veteran was entitled to an exemption provided for in this act, except for an exemption under paragraph (2) of subsection b. and subsection c. of section 1 hereof, at the time of death; and that the claimant is a resident of this State and has not remarried. Such exemptions shall be allowed and prorated by the assessor for the remainder of any taxable year from the date the claimant shall have acquired title to the real property intended to be exempt by this act. Where a portion of a multiple-family building or structure occupied by the claimant is the subject of such exemption, the assessor shall aggregate the assessment on the lot or curtilage and building or structure and allow an exemption of that percentage of the aggregate assessment as the value of the portion of the building or structure occupied by the claimant bears to the value of the entire building or structure.

(cf: P.L.2019, c.413, s.2)

4. Section 3 of P.L.1948, c.259 (C.54:4-3.32) is amended to read as follows:

3. The governing body of each municipality, by appropriate resolution, may return all taxes collected on property which would have been exempt, or deducted pursuant to section 1 of P.L.1948, c.259 (C.54:4-3.30), as the case may be, had proper claim in writing been made therefor in the manner provided by P.L.1948, c.259 (C.54:4-3.30 et seq.). The governing body of each municipality, by appropriate resolution, may also return to the veteran or the veteran's surviving spouse all property tax payments made since the time of the veteran's actual disability or since the time of the veteran's death. No refunds shall be made under this section for any year or portion thereof prior to the effective date of P.L.1948, c.259 (C.54:4-3.30 et seq.).

(cf: P.L.2007, c.317, s.3)

5. (New section) The State Treasurer shall annually reimburse each taxing district in an amount equal to 102 percent of the amount of any property tax deduction granted by that taxing district under paragraph (2) of subsection a. of section 1 of P.L.1948, c.259 (C.54:4-3.30).

6. This act shall take effect on the January 1 next following the date of enactment.

STATEMENT

This bill would provide an annual deduction for 100 percent of the property taxes, up to $5,000, assessed to honorably discharged veterans who served in the United States Armed Forces and suffered a service-connected disability that is rated less than 100 percent by the United States Department of Veterans Affairs.

Under current law, a veteran who has been honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States and who has been or shall be declared by the United States Department of Veterans Affairs or its successor to have a service-connected disability of 100 percent, is entitled to a 100 percent property tax exemption. The bill would provide that any such veteran who has been declared by the United States Department of Veterans Affairs or its successor to have a service-connected disability of less than 100 percent would receive an annual deduction for 100 percent of the property taxes assessed to the veteran in any tax year, up to $5,000. In the case of such a veteran whose annual property tax bill in any tax year is less than $5,000, that tax bill would be canceled.

This property tax deduction would be in addition to the $250 veterans’ property tax deduction that is currently provided for all honorably discharged veterans.

The bill would also require the State Treasurer to annually reimburse taxing districts for 102 percent of the amount of the property tax deductions granted to honorably discharged veterans under the bill.