Bill Text: NJ SCR113 | 2024-2025 | Regular Session | Introduced

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Bill Title: Proposes constitutional amendment to increase amount of veterans' property tax deduction based on annual increases in CPI.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-09-19 - Introduced in the Senate, Referred to Senate Military and Veterans' Affairs Committee [SCR113 Detail]

Download: New_Jersey-2024-SCR113-Introduced.html

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SENATE CONCURRENT RESOLUTION No. 113

STATE OF NEW JERSEY

221st LEGISLATURE

 

INTRODUCED SEPTEMBER 19, 2024

 

 

Sponsored by:

Senator  ROBERT W. SINGER

District 30 (Monmouth and Ocean)

 

 

 

 

SYNOPSIS

     Proposes constitutional amendment to increase amount of veterans' property tax deduction based on annual increases in CPI.

 

CURRENT VERSION OF TEXT

     As introduced.

  

A Concurrent Resolution proposing to amend Article VIII, Section I, paragraph 3 of the Constitution of the State of New Jersey.

 

     Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

 

     1.    The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

 

PROPOSED AMENDMENT

 

     Amend Article VIII, Section I, paragraph 3 to read as follows:

     3. a. Any citizen and resident of this State now or hereafter honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States shall be entitled, annually to a deduction from the amount of any tax bill for taxes on real and personal property, or both, including taxes attributable to a residential unit held by a stockholder in a cooperative or mutual housing corporation in the sum of $250 in [each] for tax year 2003 through 2025, or if the amount of any such tax bill shall be less than $250, to a cancellation thereof. For tax year 2026, the deduction or cancellation shall be adjusted in proportion to the annual percentage increase in the Consumer Price Index that has occurred for each tax year from 2003 through 2025. Thereafter, the deduction or cancellation shall be adjusted annually in proportion to the annual percentage increase in the Consumer Price Index. The deduction or cancellation shall not decrease in any tax year and any increase shall be rounded to the next highest one dollar increment. For purposes of this paragraph, the definition of "Consumer Price Index" shall be defined as provided by law. The deduction or cancellation shall not be altered or repealed. Any person hereinabove described who has been or shall be declared by the United States Department of Veterans Affairs, or its successor, to have a service-connected disability, shall be entitled to such further deduction from taxation as from time to time may be provided by law. The surviving spouse of any citizen and resident of this State who has met or shall meet his or her death on active duty in any such service shall be entitled, during her widowhood or his widowerhood, as the case may be, and while a resident of this State, to the deduction or cancellation in this subsection provided for honorably discharged veterans and to such further deduction as from time to time may be provided by law. The surviving spouse of any citizen and resident of this State who has had or shall hereafter have active service in any branch of the Armed Forces of the United States and who died or shall die while on active duty in any branch of the Armed Forces of the United States, or who has been or may hereafter be honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States shall be entitled, during her widowhood or his widowerhood, as the case may be, and while a resident of this State, to the deduction or cancellation in this subsection provided for honorably discharged veterans and to such further deductions as from time to time may be provided by law.

     b.    A continuing care retirement community shall receive a veterans' property tax deduction on behalf of eligible veterans. The amount of the property tax deduction shall be the dollar amount of the deduction multiplied by the number of eligible veterans receiving the property tax deduction immediately prior to moving into the continuing care retirement community. A person otherwise eligible for the veterans' deduction who is a resident of a continuing care retirement community shall receive the amount of the deduction to the extent of the share of the taxes assessed against the real property of the continuing care retirement community that is attributable to the unit that the resident occupies. The continuing care retirement community shall provide that amount as a payment or credit to the resident. That payment or credit shall be made to the resident no later than 30 days after the continuing care retirement community receives the property tax bill on which the credit appears. A veterans' property tax deduction shall not be paid on behalf of any eligible veteran who resides in a continuing care retirement community that is property tax-exempt. A resident receiving a payment or credit pursuant to this subsection shall not receive a veterans' property tax deduction on any other residence owned in whole or in part by the resident, or any residence in which the resident's spouse is living.

     The surviving spouse of any citizen and resident of this State who has met or shall meet his or her death on active duty in any such service shall be entitled, during her widowhood or his widowerhood, as the case may be, and while a resident of this State, to the deduction in this subsection provided for honorably discharged veterans. The surviving spouse of any citizen and resident of this State who has had or shall hereafter have active service in any branch of the Armed Forces of the United States and who died or shall die while on active duty in any branch of the Armed Forces of the United States, or who has been or may hereafter be honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States shall be entitled, during her widowhood or his widowerhood, as the case may be, and while a resident of this

State, to the deduction in this subsection provided for honorably discharged veterans.

(cf: Art.VIII, Sec.I, par.3; effective December 3, 2020)

 

     2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

 

     3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

     There shall be printed on each official ballot to be used at the general election, the following:

     a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

     If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

     b. In every municipality the following question:

 

		CONSTITUTIONAL AMENDMENT TO REQUIRE VETERANS' PROPERTY TAX DEDUCTION TO BE INCREASED BASED ON CONSUMER PRICE INDEX
	YES	Do you approve amending the State Constitution to increase the amount of the veterans' property tax deduction based on the annual increases in the Consumer Price Index?  The increased deduction would first take effect for tax year 2026.  For that year, the deduction would be increased based on the annual percent increases in the Consumer Price Index that occurred each tax year since 2003.  Thereafter, the amount of the deduction would be annually adjusted based on the percent increase in the Consumer Price Index for each tax year.

 

		INTERPRETIVE STATEMENT
	NO	This proposed constitutional amendment would increase the amount of the veterans' property tax deduction based on the annual increase in the Consumer Price Index.  The Consumer Price Index is a measurement of the average change over time in the prices of various goods and services.  This index is commonly used to measure inflation.      Currently, the amount of the veterans' property tax deduction is set at $250.  For tax year 2026, the amount of the deduction would be increased based on the annual percent increases in the Consumer Price Index that occurred each tax year from 2003 through 2025.      Beginning in tax year 2027, the amount of the deduction would be annually adjusted based on the percent increase in the Consumer Price Index for that tax year.      During each tax year, the increase to the deduction would be rounded to the next highest dollar.       The constitutional amendment also provides that the amount of the deduction would not be reduced for any tax year, even if the Consumer Price Index decreased in that year.

 

 

STATEMENT

 

     This concurrent resolution would amend the State Constitution to increase the amount of the veterans' property tax deduction each tax year based on the annual percentage increase in the Consumer Price Index (CPI).  The CPI is a widely used method of measuring inflation and is an expression of the average change over time in the prices paid by certain consumers for the purchase of certain goods and services. CPI Indexes are issued for both the United States as a whole and for various geographic areas. 

     Currently, citizens and residents of the State who have been honorably discharged or released under honorable circumstances from active service in the United States Armed Forces are annually entitled to a $250 deduction from the amount of property taxes due on real property.  The deduction was last increased by voter approval of a constitutional amendment in 1999 to gradually raise the deduction over a period of four years.  The final increase occurred in 2003 to set the amount of the deduction at $250, where it has remained ever since.

     To account for changes in the cost of living that have occurred since 2003, the concurrent resolution would first increase the amount of the deduction for tax year 2026 by the amount of the annual percentage increases in the CPI that have occurred each tax year from 2003 through 2025.  Then, beginning in tax year 2027, the concurrent resolution requires the amount of the deduction to be annually adjusted based on the percentage increase in the CPI for that tax year.  Any increase made to the deduction would be rounded to the next highest dollar increment and the amount of the deduction would not be reduced in any year, even if inflation decreases.  The concurrent resolution also provides that the amount of the deduction would not be reduced for any year, even if the Consumer Price Index decreased in that year.

     The proposed constitutional amendment is conditional upon the enactment of implementing legislation establishing a definition of Consumer Price Index to determine increases in tax year 2026 and thereafter.