SENATE, No. 2054
STATE OF NEW JERSEY
INTRODUCED MAY 8, 1997
By Senator LaROSSA
An Act concerning property tax relief for certain totally disabled veterans.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be referred to as the "Totally Disabled Veterans' Property Tax Relief Act of 1997."
2. The Legislature finds and declares:
a. Certain totally disabled veterans are unaware of laws entitling them to claim a total exemption from property taxes.
b. Other veterans have received total disability status retroactive to a date in the past from the United States Department of Veterans Affairs which makes them eligible to claim a total exemption from property taxes retroactive to the same date.
c. Since no data exist to reliably estimate the amount of funds that would be required to reimburse totally disabled veterans for property taxes mistakenly paid or paid prior to a retroactive determination of total disability status, it is appropriate that the State ascertain those amounts so that appropriations can be recommended for a reimbursement program.
d. Although not legally obligated to pay property tax reimbursements to totally disabled veterans for property taxes mistakenly paid or paid prior to a retroactive determination of total disability status, it is a public purpose for the State to aid these veterans by establishing a fund to pay one-third of the amount of such reimbursement claims, or to pay one-half of such reimbursement claims in order to encourage the municipality in which a claimant resides to also agree to pay one-half of the reimbursement claim.
3. For the purposes of this act:
"Claimant" means a totally disabled veteran who failed to apply for a total property tax exemption or who only became eligible to apply for a total property tax exemption following retroactive determination of total disability status by the United States Department of Veterans Affairs.
"Fund" means the "Totally Disabled Veterans' Property Tax Relief Fund" established pursuant to section 5 of this act.
"Period of eligibility" means any year for which a claimant was eligible to apply for a total property tax exemption, but failed to do so for whatever reason, or any year for which a claimant would have been eligible to apply for a total property tax exemption if a retroactive determination of total disability by the United States Department of Veterans Affairs had been in effect.
"Qualified claim" means the net amount of property taxes overpaid by a claimant, as reported to the Department of Community Affairs by a municipal tax collector pursuant to section 4 of this act.
4. a. Commencing on the effective date of this act and concluding on the last day of the fifth month next following enactment of this act, the Department of Community Affairs, in consultation with the Department of Veterans' and Military Affairs shall advertise through veterans' organizations or otherwise, and make available to totally disabled veterans an application for partial reimbursement by the State of property taxes mistakenly paid or paid prior to a retroactive determination of total disability status. The Department of Community Affairs shall also notify each municipality of the program in order that municipal governing bodies may determine by resolution to participate in the program by agreeing to pay half of the reimbursement amount to a claimant residing in the municipality.
b. An application for reimbursement of property taxes mistakenly paid or paid prior to a retroactive determination of total disability status shall be filed with the tax collector in the municipality wherein the claimant resides. The claimant shall also be responsible for filing an application with the tax collector in any other municipality in which the claimant may have resided during a period of eligibility.
c. The tax collector shall calculate the amount of reimbursement for the period of eligibility, minus any amounts returned to the claimant as a veteran's deduction, senior citizen deduction or homestead rebate related to the payment of property taxes. This calculated amount shall not include interest.
d. On or before the 15th day of the sixth month next following enactment of this act, the tax collector shall file completed applications with the Department of Community Affairs, along with the collector's certification of the qualified claim amount and a certified copy of any municipal resolution agreeing to pay one-half of the amount of qualified reimbursement due to the claimant.
e. On or before the 15th day of the sixth month next following enactment of this act, the governing body of a municipality that wishes to participate in the program established by this act shall adopt a resolution agreeing to pay one-half of the certified qualified claim amount for each claim certified by the tax collector.
5. a. There is established in the Department of Community Affairs a fund to be known as the "Totally Disabled Veterans' Property Tax Relief Fund."
b. On or before the first day of the seventh month next following enactment of this act the Department of Community Affairs shall file a report to the Legislature detailing the amounts of the certified reimbursement claims received from municipal tax collectors pursuant to section 4 of this act. The report shall divide claimants into two groups; the first being those claimants who will not be receiving municipal contribution and the second being those claimants who will receive municipal contribution. The report shall contain a recommendation for an appropriation amount sufficient to pay one-third of the total certified claim amount for the first group and one-half of the total certified claim amount for the second group.
c. The Legislature shall appropriate an amount to the fund in accordance with the recommendation of the Department of Community Affairs pursuant to subsection b. of this section that is sufficient to pay one-third of the qualified claim amount for claimants residing in municipalities that have not agreed to participate in this program and one-half of the qualified claim amount for claimants residing in municipalities that have agreed to participate in this program.
d. Following the appropriation of sufficient monies into the fund, the fund shall pay to each claimant one-third of the amount of the claimant's qualified claim, unless the municipality in which the claimant resides has adopted a resolution agreeing to pay one-half of the qualified claim, in which case the fund shall also pay one-half of the qualified claim.
e. Following disbursement of all monies to satisfy the claims filed pursuant to this act, any additional monies remaining in the fund shall lapse into the General Fund and the fund shall cease.
f. The claimant shall be solely responsible for the payment of any federal, State or local taxes due because of the reimbursement of property taxes under this section.
6. This act shall take effect immediately and shall expire upon the payment of all claims duly filed in accordance with this act.
STATEMENT
This bill is intended to aid totally disabled veterans who either mistakenly failed to apply for a total property tax exemption or paid property taxes prior to a determination of total disability status retroactive to a date in the past that entitles the totally disabled veteran to an exemption from property taxes retroactive to the same date. Although the State has no legal obligation to pay these property tax refunds, it is in the public interest to help totally disabled veterans. The first part of the bill requires the Department of Community Affairs, in consultation with the Department of Veterans' and Military Affairs, to solicit applications from totally disabled veterans who may not have been aware of eligibility for total property tax exemption or who may have received a retroactive determination of total disability from the United States Department of Veterans Affairs. This bill allows at least a five- month period for advertisement of the program and submission of applications to local tax collectors. The tax collectors would then have an additional 15 days to calculate the property tax reimbursement amount, minus any property tax deduction or rebate received by the claimant related to the payment of property taxes, and not including interest. The collector would certify this amount and file the certified claim amount along with the application with the Department of Community Services.
The second part of this bill establishes a fund out of which the State would satisfy a portion of the veterans' property tax reimbursement claims. The fund would pay one-third of a certified reimbursement amount to a claimant, unless the municipality in which the claimant resides has adopted a resolution agreeing to pay one-half of the certified reimbursement amount, in which case the fund would match that amount, also paying one-half of the claim.
The fund would be funded through an appropriation, the amount of which would be determined after receipt of a report from the Department of Community Affairs to the Legislature, detailing the amount of certified reimbursement claims received. The report would divide claimants into those who will not be receiving municipal contribution and those who will receive municipal contribution so that the differential pay-out amounts can be calculated for claimants in each group. This delayed appropriation funding mechanism is required because there are no adequate data to estimate the total amount of reimbursement that totally disabled veterans could claim under this program.
"Totally Disabled Veterans' Property Tax Relief Act of 1997."