State & Local Legislation
New Jersey Proposes Disabled Veterans Tax Relief
March 14, 2026
New Jersey Assemblyman Alex Sauickie introduced legislation (A2939) to provide property tax relief for honorably discharged disabled veterans with service-connected disabilities rated below 100% by the VA. The bill proposes an annual property tax deduction of up to $5,000 and mandates state reimbursement to municipalities to prevent local tax revenue loss. This initiative aims to expand financial support to a broader group of disabled veterans while maintaining municipal fiscal stability.
- State procurement and finance officials should anticipate adjustments in municipal funding flows due to mandated reimbursements from the New Jersey State Treasury.
- Municipalities will need to update tax administration processes to implement the new deduction and coordinate with state reimbursement mechanisms.
- Contractors providing tax software or municipal financial services may find new opportunities to support compliance and system updates.
- This legislation signals a potential increase in state-level fiscal programs requiring intergovernmental coordination and procurement of related administrative services.
This legislation is about fairness and keeping our promise to every disabled veteran who served our country.
— Alex Sauickie
Agencies
New Jersey State Treasury, Municipalities of New Jersey