Authorizes proportional property tax exemption for honorably discharged veterans having service-connected permanent disability; extends eligibility to veterans suffering from mental illness; establishes eligibility of property owned by disabled veteran with surviving partner for exemption.

This bill (S 1012) expands New Jersey's property tax exemption for veterans. It adds "mental illness" to the list of qualifying service-connected disabilities that allow veterans to receive a proportional tax exemption on their primary residence (based on their disability percentage). The bill also extends survivor eligibility to include surviving partners in civil unions or domestic partnerships, allowing them to claim the exemption after a veteran's death if the veteran would have qualified. This amends existing law (P.L.1948, c.259) to broaden access for veterans with mental health disabilities and ensure surviving partners receive the same benefits as surviving spouses.