To expand the number of disabled veterans who can receive New Jersey’s property tax exemption, Assembly Democrats John Armato and Vincent Mazzeo sponsor a bi-partisan bill to make residents of cooperative and mutual housing corporations eligible for the exemption.
Totally disabled veterans and their surviving spouses are already exempt from property taxes if they own and live in a single-family home, a portion of a multi-family home, or an individual unit in a condominium or apartment building.
Cooperative housing and mutual housing corporations allow people to be a shareholder in an organization that owns the building in which they live – making them a partial owner. Each shareholder pays a portion of the property tax for their building.
The bill (A-911/S-956) would extend the State’s property tax exemption to disabled veterans and their surviving spouses who are tenant shareholders of cooperative housing or a mutual housing corporation. The total cost of a property’s tax rate would be reduced based on the share of taxes the eligible veteran’s specific unit would incur, and the taxpaying entity would be required to pass those savings along to the veteran.
Upon the bill unanimously passing the full Assembly Thursday, Assemblymen Armato and Mazzeo (both D-Atlantic) issued the following joint statement:
“Cooperative and mutual housing corporations offer a less expensive alternative to homeownership than being the sole owner of a house, condo or apartment. With many disabled veterans facing significant financial challenges, affordable housing is a critical need that co-ops and mutual housing groups can fill.
“Since residents of these jointly-owned buildings must pay a share of the property tax, it’s only fair disabled veterans in these residences receive the same tax exemption as fellow veterans living in more traditional homes.”
Having previously passed the full Senate, the bill now heads to the Governor.