Legislation that would provide a retroactive property tax exemption for New Jersey veterans who have been declared 100 percent disabled by the U.S. Department of Veterans Affairs was advanced by the New Jersey State Assembly’s State and Local Government Affairs Committee last week.
The bill, designated A941, mandates that these veterans receive the exemption retroactive to the date when their disability was determined.
Municipalities would then be required to return all property taxes collected on the veterans’ properties following the date that the disability was determined.
The bill further mandates that the state reimburse municipalities for reimbursements to the veterans.
The bill is designed to address certain administrative delays that prevent some disabled veterans from receiving their property tax exemptions.
On average, it takes 140 days to complete a disability claim with the Department of Veterans Affairs. A veteran typically receives his or her first disability payment within 15 days after the claim is approved.
However, state and municipal records may not reflect the updated status of disabled veterans until at least the next quarter. The retroactive exemption would alleviate that delay.
The legislation is sponsored by Assembly members Roy Freiman, Christopher Tully and Julio Marenco.
