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

This bill requires New Jersey to reimburse municipalities for a portion of lost property tax revenue caused by exempting permanently disabled veterans' primary homes from property taxes. It directly affects disabled veterans who qualify for the total exemption (e.g., those with paraplegia, blindness, or amputations from service-connected disabilities) and the municipalities that collect property taxes. The state must pay each municipality 10% of the exempted tax amount annually, plus an additional 2% to cover administrative costs. Currently, municipalities bear the full cost of these exemptions without state reimbursement.