Requires State reimbursement to municipalities of cost of disabled veterans' total property tax exemption; increases amount of State reimbursement to municipalities for amount of veterans' property tax deduction.

S3966

SENATE, No. 3966

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 19, 2026

Sponsored by:

Senator� CARMEN F. AMATO, JR.

District 9 (Ocean)

Senator� KRISTIN M. CORRADO

District 40 (Bergen, Essex and Passaic)

SYNOPSIS

���� Requires State reimbursement to municipalities of
cost of disabled veterans' total property tax exemption; increases amount of
State reimbursement to municipalities for amount of veterans� property tax
deduction.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning
the disabled veterans' total property tax exemption and the veterans� property
tax deduction, amending P.L.1981, c.85 and R.S.54:4-52, and supplementing Title
54 of the Revised Statutes.

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

���� 1.� Section 5 of
P.L.1981, c.85
(C.54:4-8.53a) is amended to read as
follows:

���� 5.� The State shall annually
reimburse each taxing district in an amount equal to
[
102
]

102.5
percent of the
amount of any deductions permitted by that taxing district in the current tax
year pursuant to
[
the
act of which this act is amendatory and supplementary
]

P.L.1963, c.172 (C.54:4-8.40
et seq.)
.

(cf:� P.L.1997, c.30, s.4)

���� 2.� (New section)� The State
shall annually reimburse each taxing district in an amount equal to 102.5
percent of the amount of any disabled veterans' total property tax exemptions
permitted by that taxing district in the current tax year pursuant to section 1
of P.L.1948, c.259 (C.54:4-3.30).

���� 3.� (New section)� a.� On or
before June 1 of each year, each tax assessor shall certify to the county tax
board the number of disabled veterans receiving the veterans' total property
tax exemption provided for in section 1 of P.L.1948, c.259 (C.54:4-3.30), and
the total amount of all such exemptions.

���� b.� On or before June 15 of
each year, each county board of taxation shall, on a form prescribed by the
director, certify to the director from the tax lists certified with it for each
taxing district for the current tax year the following:

���� (1)� number of disabled
veterans' total property tax exemptions allowed for the current tax year;

���� (2)� total dollar amount of
disabled veterans' total property tax exemptions allowed for the current tax
year;

���� (3)� separately, the number
and dollar amount of disabled veterans' total property tax exemptions allowed
or disallowed, as certified by the tax collector, from the time of
certification made the previous year and prior to certification for the current
year;

���� (4)� the totals for paragraphs
(1), (2), and (3)
[
above
]

of this
subsection
, by district and for the county as a whole.

���� 4.� (New section)� For each
year, each county board of taxation shall include in the abstract of ratables
prepared pursuant to R.S.54:4-52 the full estimated amount of the disabled
veterans' total property tax exemptions as provided for in section 1 of P.L.1948,
c.259 (C.54:4-3.30), but that amount shall not be included in the total on
which the tax rate is to be computed.

���� 5.� R.S.54:4-52 is amended to
read as follows:

���� 54:4-52.� The county board of
taxation shall, on or before May 20, or on or before May 31 in the case of a
county board of taxation participating in the demonstration program established
in section 4 of P.L.2013, c.15 (C.54:1-104), in the case of a county operating
under the "Property Tax Assessment Reform Act," P.L.2009, c.118
(C.54:1-86 et seq.), and in the case of a municipality located in a county that
has adopted, by resolution, the provisions of section 1 of P.L.2018, c.94
(C.54:1-105), fill out a table of aggregates copied from the duplicates of the
several assessors and the certifications of the Director of the Division of
Taxation relating to second-class railroad property, and enumerating the
following items:

���� (1)� The total number of acres
and lots assessed;

���� (2)� The value of the land
assessed;

���� (3)� The value of the
improvements thereon assessed;

���� (4)� The total value of the
land and improvements assessed, including:

���� a.� Second-class railroad
property;

���� b.� All other real property.

���� (5)� The value of the personal
property assessed, stating in separate columns:

���� a.� Value of household goods
and chattels assessed;

���� b.� Value of farm stock and
machinery assessed;

���� c.�
[
Value of stocks in trade,
materials used in manufacture and other personal property assessed under
section 54:4-11
]

(Deleted by amendment, P.L. , c. )
(pending before the

Legislature as this bill)
;

���� d.� Value of all other
tangible personal property used in business assessed.

���� (6)�
[
Deductions
allowed, stated in separate columns:

���� a.� Household goods and other
exemptions under the provisions of section 54:4-3.16 of this Title
;

���� b.� Property exempted under section 54:4-3.12 of this
Title.
]

(Deleted by amendment, P.L. �����, (c.��������
�) (pending before the Legislature as this bill)

���� (7)� The net valuation
taxable;

���� (8)� Amounts deducted under
the provisions of
[
sections
]

R.S.
54:4-49
and
R.S.
54:4-53
[
of
this Title
]

or any other similar law (adjustments resulting from prior appeals);

���� (9)� Amounts added under any
of the laws mentioned in subdivision 8 of this section (like adjustments);

���� (10) �Amounts added for
equalization under the provisions of
[
sections
]

R.S.
54:3-17
to
R.S.
54:3-19
[
of
this Title
]
;

���� (11) �Amounts deducted for
equalization under the provisions of
[
sections
]

R.S.
54:3-17
to
R.S.
54:3-19
[
of
this Title
]
;

���� (12) �Net valuation on which
county, State and State school taxes are apportioned;

���� (13) �The number of polls
assessed;

���� (14) �The amount of dog taxes
assessed;

���� (15) �The property exempt from
taxation under the following special classifications:

���� a.� Public school property;

���� b.� Other school property;

���� c.� Public property;

���� d.� Church and charitable
property;

���� e.� Cemeteries and graveyards;

���� f.� Other exemptions not
included in foregoing classifications subdivided showing exemptions of real
property and exemptions of personal property;

���� g.� The total amount of exempt
property;

����
h.� The number of disabled
veterans receiving the disabled veterans' total property tax exemption provided
for in section 1 of P.L.1948, c.259 (C.54:4-3.30) and the total amount of all
such exemptions.

���� (16) �State road tax;

���� (17) �State school tax;

���� (18) �County taxes
apportioned, exclusive of bank stock taxes;

���� (19) �Local taxes to be
raised, exclusive of bank stock taxes, subdivided as follows:

���� a.� District school tax;

���� b.� Other local taxes.

���� (20) �Total amount of
miscellaneous revenues, including surplus revenue appropriated, for the support
of the taxing district budget, which, for a municipality operating under the
State fiscal year, shall be the amounts for the fiscal year ending June 30 of
the year in which the table is prepared;

���� (21) �District court taxes;

���� (22) �Library tax;

���� (23) �Bank stock taxes due
taxing district;

���� (24) �Tax rate for local
taxing purposes to be known as general tax rate to apply per $100.00 of
valuation, which general tax rate shall be rounded up to the nearest one-half
penny after receipt in any year of a municipal resolution submitted to the
county tax board on or before April 1 of that tax year requesting that the
general tax rate be rounded up to the nearest one-half penny.

���� For municipalities operating
under the State fiscal year, the amount for local municipal purposes shall be
the amount as certified pursuant to section 16 of P.L.1994, c.72
(C.40A:4-12.1). The table shall also include a footnote showing the amount
raised by taxation for municipal purposes as shown in the State fiscal year
budget ending June 30 of the year the table is prepared.

���� In addition to the above such
other matters may be added, or such changes in the foregoing items may be made,
as may from time to time be directed by the Director of the Division of
Taxation.� The forms for filling out tables of aggregates shall be prescribed and

sent by
the director
[
and
sent by him
]

to the county treasurers of the several counties to be by them transmitted to
the county board of taxation. Such table of aggregates shall be correctly added
by columns and shall be signed by the members of the county board of taxation
and shall within three days thereafter be transmitted to the county treasurer
who shall file the same and forthwith cause it to be printed in its entirety
and shall transmit certified copy of same to the Director of the Division of Taxation,
the State Auditor, the Director of the Division of Local Government Services in
the Department of Community Affairs, the clerk of the board of
[
freeholders
]

county
commissioners
, and the clerk of each municipality in the county.

(cf: P.L.2018, c.94, s.10)

���� 6.� (New section)� The
Director of the Division of Taxation in the Department of the Treasury may
inspect all records in the office of the collector and the assessor with
respect to claims and allowances for the disabled veterans' total property tax
exemption provided for in section 1 of P.L.1948, c.259 (C.54:4-3.30).

���� 7.� (New section)� The
Director of the Division of Taxation in the Department of the Treasury is
authorized to adopt regulations pursuant to the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the
provisions of P.L. , c.���� (C.����� ) (pending before the
Legislature as this bill).

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

STATEMENT

���� This bill would require the
State to annually reimburse each municipality in an amount equal to 102.5
percent of the amount of any disabled veterans' total property tax exemption
and any $250 veterans� property tax deduction permitted by that taxing district
in the current tax year.� It is the intent of the sponsor that the 102.5
percent reimbursement shall cover the cost of the actual taxes exempted or
deducted, plus any administrative costs that may be incurred by the
municipalities due to the enactment of the bill.