Authorizes proportional property tax exemption for honorably discharged veterans having service-connected permanent disability; extends eligibility to veterans suffering from mental illness; establishes eligibility of property owned by disabled veteran with surviving partner for exemption.

This bill expands New Jersey's property tax exemption for veterans by allowing proportional exemptions based on service-connected disability ratings (up to 100%). It directly affects honorably discharged veterans with permanent service-connected disabilities, including those with mental illness conditions like PTSD or depression as defined by the DSM. The bill extends eligibility to surviving civil union partners and domestic partners of disabled veterans, allowing them to claim the exemption even if the disability was declared after the veteran's death. It also modifies the existing exemption to provide proportional tax relief rather than requiring a 100% disability rating for full exemption.