A1142

ASSEMBLY, No. 1142

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman COHEN

An Act providing an annual $50 property tax deduction to certain veterans and surviving spouses and amending P.L.1963, c.171.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1963, c.171 (C.54:4-8.10) is amended to read as follows:

1. As used in this act:

(a) "Active service in time of war" means active service at some time during one of the following periods:

The Vietnam conflict, December 31, 1960, to the date of termination as proclaimed by the Governor;

The Korean conflict, June 23, 1950 to July 27, 1953;

World War II, December 7, 1941 to September 2, 1945;

World War I, April 6, 1917 to November 11, 1918, and in the case of service with the United States military forces in Russia, April 6, 1917 to April 1, 1920;

Spanish-American War, April 21, 1898 to August 13, 1898;

Civil War, April 15, 1861 to May 26, 1865; or, as to any subsequent war, during the period from the date of declaration of war to the date on which actual hostilities shall cease.

(b) "Assessor" means the assessor, board of assessors or any other official or body of a taxing district charged with the duty of assessing real and personal property for the purpose of general taxation.

(d) "Honorably discharged or released under honorable circumstances from active service in time of war" means and includes every form of separation from active, full-time duty with military or naval pay and allowances in some branch of the Armed Forces of the United States in time of war, other than those marked "dishonorable," "undesirable," "bad conduct," "by sentence of general court martial," "by sentence of summary court martial" or similar expression indicating that the discharge or release was not under honorable circumstances. A disenrollment certificate or other form of release terminating temporary service in a military or naval branch of the armed forces rendered on a voluntary and part-time basis without pay, or a release from or deferment of induction into the active military or naval service shall not be deemed to be included in the aforementioned phrase.

(e) "Pre-tax year" means the particular calendar year immediately preceding the "tax year."

(f) "Resident" means one legally domiciled within the State of New Jersey. Mere seasonal or temporary residence within the State, of whatever duration, shall not constitute domicile within the State for the purposes of this act. Absence from this State for a period of 12 months shall be prima facie evidence of abandonment of domicile in this State. The burden of establishing legal domicile within the State shall be upon the claimant.

(g) "Tax year" means the particular calendar year in which the general property tax is due and payable.

(h) "[Veteran] War veteran" means any citizen and resident of this State honorably discharged or released under honorable circumstances from active service in time of war in any branch of the Armed Forces of the United States.

(i) "[Veteran's] War veteran's deduction" means the deduction against the taxes payable by any person, allowable pursuant to [this act] subsection a. of section 2 of P.L. 1963, c. 171 (C. 54:4-8.11).

(j) "Surviving spouse" means the surviving wife or husband of any of the following, while he or she is a resident of this State, during widowhood or widowerhood:

1. A citizen and resident of this State who has died or shall die while on active duty in time of war in any branch of the Armed Forces of the United States; or

2. A citizen and resident of this State who has had or shall hereafter have active service in time of war in any branch of the Armed Forces of the United States and who died or shall die while on active duty in a branch of the Armed Forces of the United States; or

3. A citizen and resident of this State who has been or may hereafter be honorably discharged or released under honorable circumstances from active service in time of war in any branch of the Armed Forces of the United States; or

4. A citizen and resident of this State who has died or shall die while in active service in peacetime in any branch of the Armed Forces of the United States; or

5. A citizen and resident of this State who has been or may hereafter be honorably discharged or released under honorable circumstances from active service in peacetime in any branch of the Armed Forces of the United States.

(k) "Cooperative" means a housing corporation or association incorporated or organized under the laws of New Jersey which entitles a shareholder thereof to possess and occupy for dwelling purposes a house, apartment or other structure owned or leased by the corporation or association;

(l) "Mutual housing corporation" means a corporation not-for-profit incorporated under the laws of New Jersey on a mutual or cooperative basis within the scope of section 607 of the "National Defense Housing Act," Pub. L.76-849 (42 U.S.C.§1521 et seq.), which acquired a National Defense Housing Project pursuant to that act.

(m) "Honorably discharged or released under honorable circumstances from active service in peacetime" means every form of separation from active, full-time duty with military or naval pay and allowances in some branch of the Armed Forces of the United States at any time other than during time of war or other emergency, other than those marked "dishonorable," "undesirable," "bad conduct," "by sentence of general court martial," "by sentence of summary court martial" or similar expression indicating that the discharge or release was not under honorable circumstances. A disenrollment certificate or other form of release terminating temporary service in a military or naval branch of the armed forces rendered on a voluntary and part-time basis without pay, or a release from or deferment of induction into the active military or naval service shall not be deemed to be included in the aforementioned phrase.

(n) "Peacetime veteran" means any citizen and resident of this State now or hereafter honorably discharged or released under honorable circumstances from active service in peacetime in any branch of the Armed Forces of the United States.

(o) "Peacetime veteran's deduction" means the deduction against the taxes payable by any person, allowable pursuant to subsection b. of section 2 of P.L.1963, c.171 (C.54:4-8.11).

(cf: P.L.1989, c.252, s.5)

2. Section 2 of P.L.1963, c.171 (C.54:4-8.11) is amended to read as follows:

2. a. Every [person a citizen and resident of this State now or hereafter honorably discharged or released under honorable circumstances from active service in time of war in any branch of the Armed Forces of the United States] war veteran and a surviving spouse as defined [herein] in subparagraphs 1, 2, and 3 of paragraph (j) of section 2 of P.L.1963, c.171 (C.54:4-8.10), during her widowhood or his widowerhood, and while a resident of this State, shall be entitled, annually, on proper claim being made therefor, to a deduction from the amount of any tax bill for taxes on real or personal property or both in the sum of $50.00 or if the amount of any such tax shall be less than $50.00, to a cancellation thereof.

b. Every peacetime veteran, and a surviving spouse as defined in subparagraphs 4 and 5 of paragraph (j) of section 2 of P.L.1963, c.171 (C.54:4-8.10), during her widowhood or his widowerhood, and while a resident of this State, shall be entitled, annually, on proper claim being made therefor, to a deduction from the amount of any tax bill for taxes on real or personal property or both in the sum of $50.00 or if the amount of any such tax shall be less than $50.00, to a cancellation thereof.

(cf: P.L.1985, c.515, s.7)

3. Section 3 of P.L.1963, c.171 (C.54:4-8.12) is amended to read as follows:

3. No war veteran's deduction or peacetime veteran's deduction from taxes assessed against real and personal property, as provided herein, shall be allowed except upon written application therefor, which application shall be on a form prescribed by the Director of the Division of Taxation, in the Department of the Treasury, and provided for the use of claimants hereunder by the governing body of the municipality constituting the taxing district in which such claim is to be filed and the application has been approved as provided in this act. An assessor shall not require the filing of an application for a war veteran's deduction under this act of any person who has filed, or shall file, a claim for an exemption from taxation under chapter 184 of the laws of 1951, on or before December 31, 1963, but shall approve a war veteran's deduction for such person, if it appears from such claim for exemption that such person meets all the other prerequisites required by law for the approval of a claim for a war veteran's deduction. Each assessor may at any time inquire into the right of a claimant to the continuance of a war veteran's deduction or a peacetime veteran's deduction hereunder and for that purpose he may require the filing of a new application or the submission of such proof as he shall deem necessary to determine the right of the claimant to continuance of such deduction. No application for a war veteran's deduction or a peacetime veteran's deduction based upon service in the Armed Forces shall be allowed unless there is annexed thereto a copy, which may be photostatic, of claimant's certificate of honorable discharge or of his certificate of release under honorable circumstances from active service in time of war in a branch of the Armed Forces of the United States or from active service in peacetime in any branch of the Armed Forces of the United States, as the case may be. In the case of an application by a surviving spouse said application shall not be allowed unless it clearly establishes that:

(a) Claimant's spouse died while on active duty in a branch of the Armed Forces of the United States, [having] and in the case of a war veteran's deduction, claimant's spouse had active service in time of war, as herein defined, in a branch of the Armed Forces of the United States[,]; or in the case of a surviving spouse of a war veteran or a peacetime veteran, claimant shall establish that the war veteran or peacetime veteran was honorably discharged or released under honorable circumstances from active service in time of war in any branch of the Armed Forces of the United States or from active service in peacetime in any branch of the Armed Forces of the United States, as is appropriate, (b) claimant's spouse was a citizen and resident of this State at the time of death, (c) claimant was the spouse of the war veteran or peacetime veteran at the time of the war veteran's or peacetime veteran's death, and (d) claimant is a resident of this State and has not remarried.

(cf: P.L.1985, c.515, s.8)

4. Section 4 of P.L.1963, c.171 (C.54:4-8.13) is amended to read as follows:

4. An application for a war veteran's deduction or a peacetime veteran's deduction hereunder may be filed with the assessor of the taxing district at any time on or before December 31 of the pretax year. If so filed and approved by the assessor, he shall allow either a war veteran's deduction or a peacetime veteran's deduction, as the case may be, from taxes on the real or personal property, or both, assessed to the claimant in the amount of the claim approved by him and shall indicate, upon the assessment list and duplicates, the approval thereof in such manner as shall be prescribed by rules of the Director of the Division of Taxation, together with the proportionate share of such property deemed to be owned by the claimant for the purposes of this act, if the claimant is not the sole owner thereof. The application, if not filed with the assessor within the time aforementioned, may be filed with the collector during the tax year and upon approval by the collector of such application he shall determine the amount of the reduction in tax to which the claimant is entitled and shall allow said amount as an offset against the tax then remaining unpaid. If the amount allowable as an offset shall exceed the amount of the tax then unpaid for that tax year, or if the application for a war veteran's deduction or a peacetime veteran's deduction is not filed with the collector until after all taxes for the tax year have been fully paid, the claimant may make application to the governing body of the municipality constituting the taxing district for the refund of any tax overpaid, but without interest, and the governing body may, in its discretion, direct the return of any tax deemed by it to have been overpaid by reason of claimant's failure to make timely application for a veteran's deduction; provided, however, that no application for a war veteran's deduction or a peacetime veteran's deduction for any previous tax year shall be allowed by any assessor, collector or governing body. Where an application for a war veteran's deduction or a peacetime veteran's deduction is filed with and allowed by a collector he shall promptly transmit such application and all exhibits attached thereto, or a photostatic copy thereof, to the assessor of the taxing district. Upon receipt thereof the assessor shall review the application and if approved by him it shall have the same force as if originally filed with him.

(cf: P.L.1985, c.515, s.9)

5. Section 6 of P.L.1963, c.171 (C.54:4-8.15) is amended to read as follows:

6. Every fact essential to support a claim for a war veteran's deduction or a peacetime veteran's deduction hereunder shall exist on October 1 of the pretax year and in the case of an application by a war veteran or a peacetime veteran such application shall establish that the claimant was, on October 1 of the pretax year, (a) a war veteran or a peacetime veteran, as herein defined, (b) the owner of the legal title to the property as to which the veteran's deduction is claimed and (c) a citizen and resident of this State and, in the case of an application by a surviving spouse, as herein defined, such application shall establish that the surviving spouse was, on October 1 of the pretax year, (a) the owner of the legal title to the property as to which the war veteran's deduction or peacetime veteran's deduction is claimed, (b) that he or she has not remarried and (c) that he or she is a resident of this State. For purposes of establishing a claim, a tenant shareholder in a cooperative or a mutual housing corporation shall be deemed the owner of legal title to his proportionate share of the taxable value of the real property of the corporation or any other entity holding title.

(cf: P.L.1989, c.252, s.6)

6. Section 7 of P.L.1963, c.171 (C.54:4-8.16) is amended to read as follows:

7. A claim having been filed with and allowed by the assessor shall continue in force from year to year thereafter without the necessity for further claim so long as the claimant shall be entitled to a war veteran's deduction or a peacetime veteran's deduction hereunder, but the assessor may at any time require the filing of a new application or such proof as he shall deem necessary to establish the right of the claimant to continuance of the deduction. It shall be the duty of every claimant to inform the assessor of any change in his or her status or property which may affect the claimant's right to continuance of the deduction.

(cf: P.L.1985, c.515, s.11)

7. Section 8 of P.L.1963, c.171 (C.54:4-8.17) is amended to read as follows:

8. No person shall be allowed a war veteran's deduction from the tax assessed against real and personal property of more than $50.00 in the aggregate in any one year nor shall any person be allowed a peacetime veteran's deduction from the tax assessed against real and personal property of more than $50.00 in the aggregate in any one year, but a war veteran's deduction or a peacetime veteran's deduction may be claimed in any taxing district in which the claimant has taxable property and may be apportioned, at the claimant's option, between two or more taxing districts; provided such claims shall not exceed $50.00 in the aggregate. If a surviving spouse, as herein defined, shall have been honorably discharged or released under honorable circumstances from active service in time of war in any branch of the Armed Forces of the United States or from active service in peacetime in any branch of the Armed Forces of the United States, the surviving spouse shall be entitled to a war veteran's deduction for each status or to a peacetime veteran's deduction for each status, as is appropriate. The war veteran's deductions and peacetime veteran's deductions herein provided shall be in addition to any exemptions now or hereafter provided by any other statute for disabled veterans or surviving spouses, as herein defined, and in addition to any deductions provided under P.L.1963, c.172 (C.54:4-8.40 et seq.) for senior citizens and the permanently and totally disabled, and certain surviving spouses thereof, to which the claimant is entitled. In addition, a claimant may receive any homestead rebate or credit provided by law.

(cf: P.L.1985, c.515, s.12)

8. Section 9 of P.L.1963, c.171 (C.54:4-8.18) is amended to read as follows:

9. Where title to property as to which a war veteran's deduction and a peacetime veteran's deduction is claimed is held by claimant and another or others, either as tenants in common or as joint tenants, a claimant shall not be allowed a war veteran's deduction or a peacetime veteran's deduction in an amount in excess of his or her proportionate share of the taxes assessed against said property, which proportionate share, for the purposes of this act, shall be deemed to be equal to that of each of the other tenants, unless the conveyance under which title is held specifically provides unequal interests, in which event claimant's interest shall be as specifically established in said conveyance. Property held by husband and wife, as tenants by the entirety, shall be deemed to be wholly owned by each tenant. Nothing herein shall preclude more than one tenant, whether title be held in common, joint tenancy or by the entirety, from claiming a war veteran's deduction or a peacetime veteran's deduction from the tax assessed against the property so held. Right to claim a war veteran's deduction or a peacetime veteran's deduction hereunder shall extend to property title to which is held by a partnership, to the extent of the claimant's interest as a partner therein, and by a guardian, trustee, committee, conservator or other fiduciary for any person who would otherwise be entitled to claim a war veteran's deduction or a peacetime veteran's deduction hereunder, but not to property the title to which is held by a corporation, except that a tenant shareholder in a cooperative or mutual housing corporation shall be entitled to claim a veteran's deduction to the extent of his proportionate share of the taxes assessed against the real property of the corporation or any other entity holding title.

(cf: P.L.1989, c.252, s.7)

9. This act shall take effect immediately, but shall remain inoperative until the tax year following the passage and approval by the voters at a general election of an authorizing amendment to Article VIII, Section I of the Constitution of the State of New Jersey (now pending before the Legislature as ACR, No. of 1990).

STATEMENT

The purpose of this bill is to provide an annual $50 property tax deduction to peacetime veterans and their surviving spouses.

As defined in the bill, a peacetime veteran means any citizen and resident of this State now or hereafter honorably discharged or released under honorable circumstances from active service in peacetime in any branch of the Armed Forces of the United States.

The bill does not in any way affect the existing annual $50 property tax deduction for veterans who were honorably discharged or released from honorable circumstances from active service in time of war or emergency. The bill does, however, redefine those veterans as war veterans to differentiate them and their property tax deduction from peacetime veterans and their property tax deduction. It also provides a property tax deduction for the surviving spouse of a citizen and resident who dies while in active service in peacetime.

Provides an annual $50 property tax deduction to peacetime veterans and their surviving spouses.