Authorizes proportional property tax exemption for honorably discharged veterans having a service-connected permanent disability and proclaims that the State shall reimburse municipalities for costs of exemption.

This bill creates a proportional property tax exemption for New Jersey veterans who are honorably discharged and have a service-connected permanent disability rated at 10% or higher. It directly affects qualifying veterans (and their surviving spouses) by reducing their property taxes in line with their disability rating, with a $10,000 cap for exemptions below 100% disability. Veterans deemed unemployable due to service-connected disability receive a full 100% exemption, matching current benefits for those with 100% disability ratings. The bill also requires the state to reimburse municipalities 102% of the tax costs for these exemptions, including administrative expenses, through annual reporting by local tax authorities.