Requires State reimbursement to municipalities of cost of disabled veterans' total property tax exemption; increases amount of State reimbursement to municipalities for amount of veterans' property tax deduction.

This bill requires the State of New Jersey to reimburse local municipalities for the cost of property tax exemptions granted to disabled veterans, and it increases the reimbursement rate for existing veterans' property tax deductions. Under the new provisions, the State will cover 102.5 percent of the total amount of disabled veterans' property tax exemptions and 102.5 percent of the veterans' property tax deductions claimed by taxpayers in each tax year. The legislation also establishes a certification process where tax assessors and county boards must report the number and dollar value of these exemptions to the State by specific deadlines each year. These changes directly affect local taxing districts, which will receive additional state funding to offset the revenue lost from these tax breaks, while disabled veterans continue to benefit from their existing property tax relief programs.