Assembly committee releases bill to make 100% disabled veterans' property tax exemption retroactive and require state reimbursement

The Assembly Appropriations, State and Local Committee on the motion released A941, a bill that would make total property tax exemptions for 100% disabled veterans retroactive to the effective date of the determination of total disability and require the state to reimburse municipalities for reimbursement of property taxes paid to a veteran.

A committee member said the measure is intended to protect fully disabled veterans while addressing the budgetary impact on municipalities. The committee noted municipalities — particularly smaller towns — can face a shortfall in the first year when an exemption is made retroactive because local budgets and payments to counties and school districts are already set.

Committee discussion was limited; no public slips were listed for this item. The committee moved and released the bill. Recorded roll-call responses during the release included "Yes" from Assemblyman Clifton; Assemblywoman Julis; Assemblyman Schonald; Vice Chair Swayne; and the committee chair. The bill was released to the next legislative step.

The bill text read to the committee specifies retroactivity to the effective date of the total disability determination and sets a state reimbursement requirement to cover municipal revenue impacts. The committee did not specify an appropriation mechanism in the discussion; funding and implementation details were not specified in the hearing record.

With the bill released, it will proceed from committee for further consideration by the full Assembly or additional committee review as required by legislative process.