Board hears sharp rise in veterans’ tax exemptions after 2022 changes; supervisors weigh acreage limits

Staff told the Gloucester County Board of Supervisors that two state-mandated veterans’ exemptions (real estate and personal property) and federal changes drove a significant rise in local tax relief. The county’s commissioner of revenue reported that estimated veterans relief for 2025 is about $1.76 million, affecting fiscal 2026 revenue.

County staff explained the state required counties to offer certain veterans’ exemptions, and Gloucester currently extends a 10-acre real-estate exemption for elderly and disabled property owners; state law requires only a one-acre minimum. Supervisors discussed whether decreasing the county’s 10-acre exemption for elderly and disabled from 10 acres down to an amount between 1 and 10 acres would reduce the veterans’ exemption obligation (the county must offer the same acreage to veterans as to elderly/disabled benefits) and asked staff to model revenue effects by acreage.

Staff cautioned that tracking personal-property veteran exemptions is manual and that some of the recent growth in exemptions may be retroactive refunds tied to expanded federal eligibility that followed the PACT Act and related VA process changes. Staff also noted the county has no discretion to decline the state-mandated exemptions, but has discretion over the acreage applied to elderly/disabled relief and therefore the linked veterans acreage.

Supervisors asked staff to return with projections showing the revenue impact of changing acreage levels, and to clarify whether refunds are recorded in the year of application or the year paid.