NJ property tax relief could hike to $2,500 for some taxpayers

⚫ NJ may adjust a tax relief program that hasn't moved from $250 since 2003

⚫ A proposed constitutional amendment brings that number up to $2,500

⚫ The increase would occur gradually over four years

Should New Jersey dig deeper into its pockets to award more property tax relief to veterans each year?

It'd be you who actually has to answer that question, if a proposal moving through the New Jersey Legislature is signed into law.

Lawmakers are considering a big boost in the property tax deduction that is awarded to veterans who call New Jersey home. Currently, the annual break is $250; the proposal would gradually bump the yearly amount to $2,500 over four years.

The amount would increase to $1,000 in the first year, $1,500 the following year, $2,000 the next year, and $2,500 in tax year 2028, under the current proposal.

Such a change would require a constitutional amendment. So, if the measure were to go all the way, the question would be posed to residents at the voting booth.

"It's been 20 years or more since this has been raised, but the taxes on us ... have been raised each year," Gary Baldwin, a retired Air Force officer, told the Senate Community and Urban Affairs Committee.

In 1999, New Jerseyans voted to increase the amount of the deduction from $50 to $250. The amount has remained at $250 since 2003.

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A veteran qualifies for the yearly break if they've been honorably discharged from service. A veteran's spouse can continue to receive the deduction after the veteran's death.

"No member of the Legislature ultimately hands over this check; it's the citizenry of the state," said state Sen. Troy Singleton, D-Burlington, a sponsor of the measure.

Without taking a position on the proposal, New Jersey Policy Perspective (NJPP) urged legislators to give it a closer look for the sake of the state's finances. While the number of veterans has been declining in New Jersey, and the tax relief payouts from the state have declined accordingly, the state's obligation could shoot up tenfold should the proposal be approved.

Peter Chen, senior policy analyst for NJPP, suggested an income cap for program eligibility, and consideration for low-income veterans who are renting.

"Without a cap, this program would potentially be handing a substantial amount of money to people who are already high-income, higher wealth," Chen said.

The Senate version of the bill was introduced in January and referred to the Senate Budget and Appropriations Committee in June. The bill was introduced in the Assembly in January, but there's been no movement since.

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