To expand the number of disabled veterans who can receive New Jersey’s property tax exemption, a bi-partisan bill sponsored by Assembly Democrats John Armato and Vincent Mazzeo to make residents of cooperative and mutual housing corporations eligible for the exemption was signed into law Thursday.
Prior to the bill becoming law, totally disabled veterans and their surviving spouses were 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 new law (formerly bill A-911/S-956) extends 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 will be reduced based on the share of taxes the eligible veteran’s specific unit would incur, and the taxpaying entity will be required to pass those savings along to the veteran.
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.”