The Ocean County Mayors Association has unanimously approved a resolution urging New Jersey lawmakers to require the state to reimburse municipalities for property tax revenue lost through exemptions granted to totally disabled veterans.
The resolution, introduced by Harvey Cedars Mayor John Imperiale and adopted at the association’s June 17 meeting, supports maintaining the property tax exemption for disabled veterans while shifting the financial burden from local governments to the state.
“Every municipality totally supports giving the tax exemption to disabled veterans. They clearly deserve it,” Imperiale said. “But it is now structured as an unfunded mandate by the state. Municipalities must offer the exemption, but the state does not cover the cost.”
Under current New Jersey law, municipalities are required to exempt qualified disabled veterans from paying property taxes, but they receive no reimbursement from the state for the resulting loss in tax revenue.
The resolution argues that local governments are forced to make up the shortfall by increasing taxes on other property owners.
While reaffirming that military service should be recognized and honored through the tax exemption, the mayors said the current system unfairly shifts the financial burden onto municipalities and their residents.
The resolution calls on Gov. Phil Murphy to sign legislation requiring the state to reimburse municipalities for the revenue lost through the disabled veterans property tax exemption, restoring “much needed tax monies to municipalities while maintaining the tax breaks.”
