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A4690
ASSEMBLY, No. 4690
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 16, 2026
Sponsored by:
Assemblywoman� ANDREA KATZ
District 8 (Atlantic and Burlington)
SYNOPSIS
���� Extends eligibility for veterans� property tax
deduction and disabled veterans� property tax exemption to certain veterans
released under other than honorable circumstances.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning veterans� property tax benefits and amending
P.L.1948, c.259 and P.L.1963, c.171.
����
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
in
accordance with the provisions of subsection f. of this section
, 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
]
P.L.1948,
c.259 (C.54:4-3.30 et seq.), as amended and supplemented
.
���� 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
]
P.L.1948,
c.259 (C.54:4-3.30 et seq.), as amended and supplemented
, 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
or
released in accordance with the provisions of subsection f. of this section
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
]
P.L.1948,
c.259 (C.54:4-3.30 et seq.), as amended and supplemented,
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.���� The exemption
authorized under this section shall be allowed for any citizen and resident of
the State who was discharged or released from active service in the Armed
Forces of the United States under any of the following circumstances:
����
(1)�� honorable discharge;
����
(2)�� released under honorable
circumstances; or
����
(3)�� released under other
than honorable circumstances, as defined in section 1 of P.L.1963, c.171
(C.54:4-8.10).
(cf: P.L.2023, c.177, s.150)
���� 2.��� 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.) 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
]
evidence
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
]
P.L.1948,
c.259 (C.54:4-3.30 et seq.), as amended and supplemented
, 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
]
P.L.1948,
c.259 (C.54:4-3.30 et seq.), as amended and supplemented
, 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
]
P.L.1948,
c.259 (C.54:4-3.30 et seq.), as amended and supplemented
. �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)
���� 3.��� Section 1 of P.L.1963,
c.171 (C.54:4-8.10) is amended to read as follows:
���� 1. (a) (Deleted by amendment,
P.L.2019, c.413)
���� (b)�� "Assessor"
means the assessor, board of assessors or any other official or body of a
taxing district charged with the duty of assessing real and personal property
for the purpose of general taxation.
���� (c)�� "Collector"
means the collector or receiver of taxes of a taxing district.
���� (d)�� "Honorably
discharged
"
[
or
]
and "
released
under honorable circumstances from active service" means and includes
every form of separation from active, full-time duty with military or naval pay
and allowances in some branch of the Armed Forces of the United States, other
than those marked "dishonorable," "undesirable," "bad
conduct," "by sentence of general court martial," "by
sentence of summary court martial" or similar expression indicating that
the discharge or release was not under honorable circumstances.� A
disenrollment certificate or other form of release terminating temporary
service in a military or naval branch of the armed forces rendered on a
voluntary and part-time basis without pay, or a release from or deferment of
induction into the active military or naval service shall not be deemed to be
included in the aforementioned phrase.
���� (e)�� "Pre-tax year"
means the particular calendar year immediately preceding the "tax
year."
���� (f)�� "Resident"
means one legally domiciled within the State of New Jersey.� Mere seasonal or
temporary residence within the State, of whatever duration, shall not
constitute domicile within the State for the purposes of
[
this act
]
P.L.1963,
c.171 (C.54:4-8.10 et seq.), as amended and supplemented
.� Absence from
this State for a period of 12 months shall be prima facie evidence of
abandonment of domicile in this State. The burden of establishing legal
domicile within the State shall be upon the claimant.
���� (g)�� "Tax year"
means the particular calendar year in which the general property tax is due and
payable.
���� (h)�� "Veteran"
means any citizen and resident of this State honorably discharged
[
or
]
,
released under honorable circumstances
, or released under other than
honorable circumstances
from active service in any branch of the Armed
Forces of the United States.
���� (i)��� "Veteran's
deduction" means the deduction against the taxes payable by any person,
allowable pursuant to
[
this
act
]
P.L.1963,
c.171 (C.54:4-8.10 et seq.), as amended and supplemented
.
���� (j)��� "Surviving
spouse" means the surviving wife or husband of any of the following, while
he or she is a resident of this State, during widowhood or widowerhood:
���� 1.���
[
A
]
a
citizen and resident of this State who has died or shall die while on active
duty in any branch of the Armed Forces of the United States;
[
or
]
���� 2.���
[
A
]
a
citizen and resident of this State who has had or shall hereafter have active
service in any branch of the Armed Forces of the United States and who died or
shall die while on active duty in a branch of the Armed Forces of the United
States; or
���� 3.���
[
A
]
a
citizen and resident of this State who has been or may hereafter be honorably
discharged
[
or
]
,
released under honorable circumstances
, or released under other than
honorable circumstances
from active service in any branch of the Armed
Forces of the United States.
���� (k)�� "Cooperative"
means a housing corporation or association incorporated or organized under the
laws of New Jersey which entitles a shareholder thereof to possess and occupy
for dwelling purposes a house, apartment or other structure owned or leased by
the corporation or association.
���� (l)��� "Mutual housing
corporation" means a corporation not-for-profit incorporated under the
laws of New Jersey on a mutual or cooperative basis within the scope of section
607 of the "National Defense Housing Act," Pub.L.76-849 (42 U.S.C.s.1521
et seq.), which acquired a National Defense Housing Project pursuant to that
act.
���� (m)� "Continuing care
retirement community" means a residential facility primarily for retired
persons where lodging and nursing, medical or other health related services at
the same or another location are provided as continuing care to a resident of
the facility pursuant to an agreement effective for the life of the resident
and in consideration of the payment of an entrance fee with or without other
periodic charges, which agreement requires the individual to bear a share of
the property taxes that are assessed upon the continuing care retirement
community, if a share is attributable to the unit that the resident occupies.
����
(n)�� �Released under other
than honorable circumstances� means and includes every form of separation from
active, full-time duty with military or naval pay and allowances in some branch
of the Armed Forces of the United States, other than honorable discharges,
releases under honorable circumstances, or separations from active service
occurring as a court martial proceeding, provided that the release did not
occur as a result of one or more infractions involving assault or illegal
substances that would constitute a crime or offense if the veteran were found
guilty of the infraction in this State.� A disenrollment certificate or other
form of release terminating temporary service in a military or naval branch of
the armed forces rendered on a voluntary and part-time basis without pay, or a
release from or deferment of induction into the active military or
naval service shall not be deemed to be included in the aforementioned phrase.
(cf: P.L.2019, c.413, s.3)
���� 4.��� Section 2 of P.L.1963,
c.171 (C.54:4-8.11) is amended to read as follows:
���� 2.��� Every
[
person a
]
citizen and
resident of this State now or hereafter honorably discharged
[
or
]
,
released under honorable circumstances
, or released under other than
honorable circumstances
from active service in any branch of the Armed
Forces of the United States and a surviving spouse
,
as defined
[
herein
]
in section
1 of P.L.1963, c.171 (C.54:4-8.10)
, during her widowhood or his
widowerhood, and while a resident of this State, shall be entitled, annually,
on proper claim being made therefor, to a deduction from the amount of any tax
bill for taxes on real or personal property or both in the sum of $100 in tax
year 2000, $150 in tax year 2001, $200 in tax year 2002, and $250 in each
subsequent tax year, or if the amount of any such tax shall be less than $100
in tax year 2000, $150 in tax year 2001, $200 in tax year 2002, and $250 in
each subsequent tax year, to a cancellation thereof.� A person otherwise
eligible for the veterans' deduction who is a resident of a continuing care
retirement community shall receive the amount of the deduction to the extent of
the share of the taxes assessed against the real property of the continuing
care retirement community that is attributable to the unit that the resident
occupies.� The continuing care retirement community shall provide that amount
as a payment or credit to the resident for the amount of the property tax
credit received by the continuing care retirement community.� That payment or
credit shall be made to the resident no later than 30 days after the continuing
care retirement community receives the property tax bill on which the credit
appears.
(cf: P.L.2019, c.413, s.4)
���� 5.��� Section 3 of P.L.1963,
c.171 (C.54:4-8.12) is amended to read as follows:
���� 3.��� No veteran's deduction
from taxes assessed against real and personal property, as provided
[
herein
]
in
P.L.1963, c.171 (C.54:4-8.10 et seq.), as amended and supplemented
, shall
be allowed except upon written application therefor, which application shall be
on a form prescribed by the Director of the Division of Taxation, in the
Department of the Treasury, and provided for the use of claimants hereunder by
the governing body of the municipality constituting the taxing district in
which such claim is to be filed and the application has been approved as
provided in
[
this
act
]
P.L.1963,
c.171 (C.54:4-8.10 et seq.), as amended and supplemented
.� An assessor
shall not require the filing of an application for a veteran's deduction under
[
this act
]
P.L.1963,
c.171 (C.54:4-8.10 et seq.), as amended and supplemented,
of any person who
has filed, or shall file, a claim for an exemption from taxation under
[
chapter 184 of
the laws of 1951
]
P.L.1951, c.184
, on or before December 31, 1963, but shall approve a
veteran's deduction for such person, if it appears from such claim for
exemption that such person meets all the other prerequisites required by law
for the approval of a claim for a veteran's deduction.� Each assessor may at
any time inquire into the right of a claimant to the continuance of a veteran's
deduction hereunder and for that purpose he may require the filing of a new
application or the submission of such proof as he shall deem necessary to
determine the right of the claimant to continuance of such deduction.� No
application for a veteran's deduction based upon service in the Armed Forces of
the United States shall be allowed unless there is annexed thereto a copy,
which may be photostatic, of
the
claimant's certificate of honorable
discharge or
[
of
his
]
certificate of release under honorable circumstances from active service in a
branch of the Armed Forces of the United States
, or evidence that the
claimant was released under other than honorable circumstances, which release
did not occur as a result of one or more infractions involving assault or
illegal substances that would constitute a crime or offense if the veteran were
found guilty of the infraction in this State
.� In the case of an
application by a surviving spouse said application shall not be allowed unless
it clearly establishes that:
���� (a)�� Claimant's spouse died
while on active duty in a branch of the Armed Forces of the United States,
having had active service in a branch of the Armed Forces of the United States,
or in the case of a surviving spouse of a veteran, claimant shall establish that
the veteran was honorably discharged
[
or
]
,
released under honorable circumstances
, or released under other than
honorable circumstances
from active service in any branch of the Armed
Forces of the United States, (b) claimant's spouse was a citizen and resident
of this State at the time of death, (c) claimant was the spouse of the veteran
at the time of the veteran's death, and (d) claimant is a resident of this
State and has not remarried.
(cf: P.L.2019, c.413, s.5)
���� 6.��� Section 8 of P.L.1963,
c.171 (C.54:4-8.17) is amended to read as follows:
���� 8.��� No person shall be
allowed a veteran's deduction from the tax assessed against real and personal
property of more than $100 in the aggregate in tax year 2000, $150 in the
aggregate in tax year 2001, $200 in the aggregate in tax year 2002 and $250 in
the aggregate in any subsequent tax year, but a veteran's deduction may be
claimed in any taxing district in which the claimant has taxable property and
may be apportioned, at the claimant's option, between two or more taxing
districts; provided such claims shall not exceed $100 in the aggregate in tax
year 2000, $150 in the aggregate in tax year 2001, $200 in the aggregate in tax
year 2002 and $250 in the aggregate in any subsequent tax year.� If a surviving
spouse, as
[
herein
]
defined
in
section 1 of P.L.1963, c.171 (C.54:4-8.10)
, shall have been honorably
discharged
[
or
]
,
released under honorable circumstances
, or released under other than
honorable circumstances
from active service in any branch of the Armed
Forces of the United States, the surviving spouse shall be entitled to a
veteran's deduction for each status.� The veteran's deductions
[
herein
]
provided
in
P.L.1963, c.171 (C.54:4-8.10 et seq.), as amended and supplemented,
shall
be in addition to any exemptions now or hereafter provided by any other statute
for disabled veterans or surviving spouses, as
[
herein
]
defined
in section 1 of
P.L.1963, c.171 (C.54:4-8.10)
, and in addition to any deductions provided
under P.L.1963, c.172 (C.54:4-8.40 et seq.) for senior citizens and the
permanently and totally disabled, and certain surviving spouses thereof, to
which the claimant is entitled.� In addition, a claimant may receive any
homestead rebate or credit provided by law.
(cf: P.L.2019, c.413, s.6)
���� 7.��� This act shall take
effect immediately and shall apply to any veteran discharged or released from
active service in a branch of the Armed Forces of the United States prior to
the date of enactment or thereafter, but shall remain inoperative until the approval
by the voters of a constitutional amendment authorizing the extension of the
veterans� property tax deduction and the veterans� property tax exemption to
certain citizens and residents of this State now or hereafter released from
active service under other than honorable circumstances.
STATEMENT
���� This bill extends eligibility
for the veterans� property tax deduction and the disabled veterans� property
tax exemption to include certain veterans who have been released from military
service under other than honorable circumstances.
���� Under current law, the State
allows a $250 property tax deduction for veterans who are honorably discharged
or released under honorable circumstances from active service in any branch of
the United States Armed Forces.� Additionally, veterans with a total and
permanent service-connected disability are eligible for a 100 percent property
tax exemption, provided that they were honorably discharged or released under
honorable circumstances from active service in any branch of the United States
Armed Forces.� In both cases, veterans who are released under other than
honorable circumstances do not currently qualify for these benefits.
���� This bill expands eligibility
for these benefits to include veterans who are released from active service in
any branch of the United States Armed Forces under other than honorable
circumstances, provided that the release did not occur as a result of one or
more infractions involving assault or illegal substances that would constitute
a crime or offense if the veteran were found guilty of the infraction in this
State.� A veteran�s surviving spouse may continue to receive the property tax
deduction or exemption, as applicable, after the veteran�s death, provided that
the surviving spouse does not remarry.
���� Eligibility for the property
tax deduction and the property tax exemption are contingent upon voter approval
of an authorizing amendment to the State Constitution.