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

This bill creates a property tax exemption for New Jersey veterans with service-connected disabilities. It provides a proportional exemption based on disability percentage (up to 100%), covering veterans with conditions like paralysis, amputations, or total blindness, and caps partial exemptions at $10,000. Surviving spouses of eligible veterans or those who died in service also qualify for similar exemptions. Crucially, the state will reimburse municipalities 102% of the lost tax revenue from these exemptions to offset costs. The law amends existing veteran property tax protections under P.L.1948, c.259.