Requires partial State reimbursement to municipalities for cost of disabled veterans' total property tax exemption.

This bill requires the State of New Jersey to annually reimburse municipalities for 10% of the property tax revenue they lose due to disabled veterans' total property tax exemptions, plus an additional 2% to cover administrative costs. It directly affects municipalities that grant these exemptions to veterans with qualifying service-connected disabilities (such as paraplegia, blindness, or amputations) under existing law. The reimbursement is calculated based on the total value of exemptions granted in each taxing district each year. Currently, municipalities bear the full cost of these exemptions without state reimbursement. The policy change shifts part of this financial burden from local governments to the state.