Veterans Tax Deduction
Those who have qualified as veterans or widows of deceased veterans serving during a period of “war or a designated conflict” and have now received the tax reimbursement credit for the 2020 Tax Year are now asking for clarification on a couple of points. They are asking whether or not there is a need to reapply each year and would the amount of the credit change going forward. Clearly, the answer is no to both questions. The amount is set by law and recipients would only have to reapply if they move to a new property address for which they pay the property tax.
If you are a veteran or a widow of a deceased veteran who served during a period of “war or a designated conflict” and have not applied for this credit, but wish to do so for the 2021 Tax Year, you must apply at your Municipal Tax Collector’s Office in person or by mail before December 31, 2020. You will be required to establish that you were a resident of New Jersey and that you were living in the residential unit for which you are asking for the tax deduction prior to October 1, 2020. A veteran or widowed spouse must present a DD Form 214. If no DD Form 214 is available, contact the NJ Department of Military and Veterans Affairs at (609) 530-6958 or the US Dept of Vets Affairs at 1-800-827-1000.
Residency in New Jersey can be established by presenting a copy of a NJ driver or non-driver license (issued by the NJ Motor Vehicle Dept.), vehicle registration, voter registration, or other government-issued identification showing name and address (tax statement, current passport, County ID issued by Sheriff’s Dept, etc.). A copy of the 2019 Tax statement or a residential contract will be sufficient to establish your unit occupancy date.
For Surviving Spouse Eligibility Requirement one must: have a death certificate of the veteran; have a document showing that the deceased veteran was a citizen and a resident of NJ; not have remarried or formed a registered civil union; be a legal resident of New Jersey; and reside currently in property for which the deduction is claimed.
The tax collector’s office in your municipality will review and approve applications for CCRC vets/spouses who qualified under the 2019 law for the Tax Year 2021 and beyond, but the credit is not retroactive.
The New, Expanded Veterans Tax Deduction Law
On January 21, 2020 a follow-on bill was passed by the NJ Legislature to grant the $250 tax deduction to ALL veterans and widows of veterans who own a living unit regardless of the period of time in which they served. No veterans/spouses will be excluded from this benefit if the question on the November 3, 2020 ballot referendum is approved by the voters of the state. The accelerated movement through the legislative process for this legislation took less than two weeks in January of this year, once action on the ORANJ 2019 bill was complete.
Before tax offices can accept applications from vets/spouses who qualify under the new 2020 law, a new, revised application form will be issued to tax offices by the State, if the ballot referendum is passed on November 3, 2020. As yet, it is not known the tax year in which the newest tax law change will become effective. If you wish to review the approved resolution, it is Senate Concurrent Resolution 187. The Senate bill approved on January 21, 2020 is Senate Bill 2599. Both can be viewed here: https://www.insidernj.com/press-release/governor-signs-bateman-bill-expanding-veterans-property-tax-relief/?utm_campaign=shareaholic&utm_medium=email_this&utm_source=email
A letter from the NJ State Treasury Department will be distributed to all municipal tax offices outlining the time-line for tax reimbursements affected by passage of this law and a referendum on November 3, 2020, election ballot.
It Took 18 Years
Many, or perhaps all, veteran residents living in our state’s 25 CCRCs have become aware over the past 18 years of the fight put forth by members of the ORANJ organization who sought to make a change in the Veterans Property Tax Deduction. With the passage and signing of the bills changing the law, the final step was made when the voters of New Jersey overwhelmingly passed the referendum on November 5, 2019, to amend the Constitution of the State of New Jersey to permit the small tax reduction for eligible veterans and widowed spouses living in our CCRCs. I am proud to say that it was a team effort by my colleagues in ORANJ leadership and another example of what ORANJ has done through the years for its membership.
Until the law was changed, those eligible forfeited their deduction when they moved into a CCRC because they do not hold legal title to the property. Identical bills were introduced in every legislative session for over a decade. Some light at the end of the long tunnel came through the efforts of Senator Vin Gopal, a recently elected legislator from the 11st District, who introduced new legislation as Senate Bill 1331 early this year. It was voted out of committee in May 2018.
On June 14, the Assembly State and Local Government Committee voted unanimously to move Assembly Bill 3163 out of committee. Supporting the bill at the committee hearing was a large contingent of ORANJ Executive Committee members and veterans who are members of our ORANJ community. Without question, this kind of effort has a very strong impact on legislative committee members hearing the bill. They understood that ORANJ stands up for our veterans and cares about this issue.
— Gary Baldwin