Authorizes proportional property tax exemption for honorably discharged veterans having a service-connected disability and requires State to reimburse municipalities for cost of exemption.

This bill creates a proportional property tax exemption for New Jersey veterans with service-connected disabilities (25% to 100% disability rating). It directly affects honorably discharged veterans with qualifying disabilities and their surviving spouses, allowing exemptions based on their disability percentage (capped at $15,000) or 100% if deemed unemployable. The law requires the state to reimburse municipalities 102% of the tax revenue lost due to these exemptions, with annual reporting by tax assessors and county boards. This amends existing law to expand veterans' property tax relief while ensuring local governments are financially compensated.