Expands eligibility for disabled veterans' property tax exemption to include certain individuals with close personal relationship to deceased veteran.

A1068

ASSEMBLY, No. 1068

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman WAYNE P. DEANGELO

District 14 (Mercer and Middlesex)

SYNOPSIS

���� Expands eligibility for disabled veterans' property
tax exemption to include certain individuals with close personal relationship
to deceased veteran.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning eligibility for the disabled 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.���� For purposes of this
section, �surviving spouse� means the surviving wife, husband, or domestic
partner of the decedent, while the person is a resident of this State and
during the person�s widowhood or widowerhood, and including a person with a
close personal relationship to the decedent who:

����
(1)� shared a common
residence with the decedent for a period of at least three consecutive years
immediately preceding the death of the decedent;

����
(2)� was jointly
responsible with the decedent for each other�s common welfare, as evidenced by:

����
(a)�� joint ownership of
the dwelling house for which the exemption is claimed; and

����
(b)� at least one of the
following criteria:

����
(i)�� joint bank accounts
or credit accounts with the decedent;

����
(ii)� designation of the
person as a primary beneficiary in the decedent�s will;

����
(iii) designation of the
person as a primary beneficiary in the decedent�s life insurance policy or
retirement plan; or

����
(iv) joint ownership of a
motor vehicle with the decedent;

����
(3)� was not married to any
other person and was not a member of a civil union or domestic partnership with
another person at the time of the decedent�s death;

����
(4)� has not married or
entered into a civil union or domestic partnership with another person after
the death of the decedent; and

����
(5)� submits with the claim
for an exemption filed pursuant to section 2 of P.L.1948, c.259 (C.54:4-3.31) an
affidavit, signed under penalty of perjury, attesting to the facts required
under paragraphs (1) through (4) of this subsection, and any documentation the
director may require in support of the affidavit.

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

���� 2.� This act shall take effect
immediately.

STATEMENT

���� This bill expands the
definition of �surviving spouse� for purposes of the disabled veterans�
property tax exemption to include certain individuals with a close personal
relationship to the deceased veteran.

���� Current law provides a 100
percent property tax exemption on dwelling houses for honorably discharged
veterans who have been declared by the United States Department of Veterans�
Affairs to have certain service-connected disabilities, including paraplegia,
total blindness, amputation of limbs, or other disabilities resulting in total
or 100 percent permanent disability.� This exemption applies to the dwelling
house and lot or curtilage where it is erected, and the veteran is required to
be a citizen and resident of this State.� The exemption continues for the
surviving spouse of an eligible veteran during the surviving spouse�s widowhood
or widowerhood, provided the surviving spouse remains a New Jersey resident,
legally owns the property, and actually occupies the dwelling house.� However,
this benefit is currently limited to legally married surviving spouses.

���� This bill expands the
statutory definition of �surviving spouse� to include a person with a close
personal relationship to the deceased veteran who meets specific eligibility
criteria.� To qualify as a �surviving spouse� under the expanded definition, the
person is required to demonstrate that he or she: (1) shared a common residence
with the deceased veteran for at least three consecutive years immediately
preceding the veteran's death; (2) was jointly responsible with the deceased
veteran for each other's common welfare, as evidenced by joint ownership of the
dwelling house for which the exemption is claimed and at least one additional
indicator of joint financial responsibility, such as joint bank or credit
accounts, designation as primary beneficiary in the decedent's will or life
insurance policy or retirement plan, or joint ownership of a motor vehicle; (3)
was not married to another person and was not a member of a civil union or
domestic partnership with another person at the time of the veteran's death;
and (4) has not married or entered into a civil union or domestic partnership
with another person after the death of the veteran.

���� The bill requires that a
person seeking to claim the exemption under the expanded definition submit an
affidavit, signed under penalty of perjury, attesting to meeting all
eligibility requirements, along with any additional documentation required by
the Director of the Division of Taxation to support the affidavit.� This
documentation may include proof of shared residence, evidence of joint
financial responsibility, and other materials demonstrating the close personal
relationship and shared common welfare with the deceased veteran.