Authorizes proportional property tax exemption for honorably discharged veterans having a service-connected disability and proclaims that the State shall reimburse municipalities for cost of exemptions.

This bill creates a property tax exemption for New Jersey veterans with service-connected disabilities, calculated proportionally to their disability rating (e.g., 50% disability = 50% exemption). It directly affects veterans declared by the U.S. Department of Veterans Affairs to have a service-connected disability of at least 30% (or deemed unemployable due to such disability), and their surviving spouses under specific conditions. The state will reimburse municipalities 102% of the tax revenue lost from these exemptions, with a $10,000 cap for partial exemptions (below 100% disability).