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 expands New Jersey's property tax exemption for veterans by adding mental illness as a qualifying service-connected disability. It allows veterans with a 100% service-connected disability rating (including mental illness) to receive a tax exemption proportional to their disability percentage. The bill also extends this exemption to surviving spouses, civil union partners, or domestic partners who own the veteran's home and continue to live there after the veteran's death. These changes update existing law to broaden eligibility while maintaining the current system of tax relief based on the veteran's documented disability rating.