Senator Carmen Amato, Jr., Assemblyman Brian Rumpf, and Assemblyman Gregory Myhre are urging the state of New Jersey to reimburse municipalities for the costs incurred from exempting 100% disabled veterans from property taxes. Although this exemption is mandated by the state, municipalities currently receive no compensation for the resultant loss in local tax revenue. The legislators argue that this unfunded mandate imposes a financial strain on local governments and are advocating for the state to assume full responsibility for these costs.
The 9th District Delegation has introduced two pieces of legislation, S-2559 and A-3705, which propose that the state cover both the actual taxes exempted and any administrative expenses incurred by municipalities related to this reimbursement program.
Senator Amato highlighted concerns regarding this unfunded mandate during a Senate Budget and Appropriations Committee meeting on May 8, where testimony was given by Brigadier General Yvonne L. Mays from the New Jersey Department of Veterans Affairs.
“This is a matter of fairness for both our veterans and our taxpayers,” said Senator Amato. “The state mandated this exemption, it should also cover the cost, not pass the burden onto local communities.”
Amato, Rumpf, and Myhre released a joint statement: “Trenton must honor its commitment to our veterans by reimbursing municipalities for the costs tied to the 100% disabled veteran property tax exemption. This unfunded state mandate unfairly burdens towns with higher numbers of qualifying veterans, driving up property taxes for both veterans and non-veteran taxpayers alike.”
They continued: “While Trenton touts providing this benefit to veterans, it has left towns and local taxpayers to actually cover the costs of the exemption, including the administrative burdens.”
The delegation emphasized their bipartisan legislative efforts aimed at ensuring that “the state honor its obligation” regarding funding this mandate. They have raised these issues during budget discussions due to their district’s significant veteran population. Without state reimbursement, they argue that local taxpayers face an unfair financial burden.
Currently, S-2559 (Amato/Burgess) is pending review by the Senate Military and Veterans’ Affairs Committee while A-3705 (Myhre/Rumpf) awaits consideration by the Assembly Military and Veterans’ Committee.
