By Michela F. DiLorenzo
BERKELEY – The Township Council raised concerns over the 100% exemption of property taxes for disabled veterans because of its impact on rising taxes and other budget concerns.
The 100% Disabled Veteran Property Tax Exemption, enforced by New Jersey’s Division of Taxation, allows qualifying veterans, surviving spouses or civil union/domestic partners of an honorably discharged veteran who were “100% permanently and totally disabled” during active duty service to be exempted from their property taxes.
Members of the governing body have often said that they support helping the veterans, but want to be made whole by the state.
This tax exemption makes it harder for municipalities to keep taxes low for the rest of their citizens because it creates a great loss in their budget, according to Councilman James Byrnes.
“This year alone, we’ve given 66 veterans 100%,” said Byrnes, “which conservatively is half a million dollars in taxes that we’ve lost.”
While the council preaches the importance of giving back to veterans, the council believes the state should be giving back to municipalities to make up for the taxes lost.
“Like the Town Council, the administration, we’re pro-military, we can’t do enough for our military veterans,” Mayor John Bacchione said. “But I agree with you, Councilman Byrnes, that the state…should reimburse municipalities.”
The loss in taxes for qualifying vets leads to an increase in taxes for other citizens. Echoing Byrnes’ sentiment, Bacchione said mandates like these have a huge impact on the municipality’s budget.
“If we eliminate 100% disabled taxes – which is okay – we have to make that up,” explained Bacchione. “And if we lose the revenue coming in, because we’re expunging their property tax and waiving their property taxes, someone has to make it up. So it does have an impact.”
This impact hits towns like Berkeley the hardest because of the increased population of veterans, he said.
Bacchione, along with the council, hopes for a change in the state budget with Governor Mikie Sherill’s new administration. Bacchione proposed sending a resolution to Governor Sherill, telling her towns need to be reimbursed.
“So hopefully, the new governor, as a veteran, will see it differently,” said Bacchione, “and possibly grace the thought of reimbursing the municipalities for the taxes that they do lose.”
Michela F. DiLorenzo studies journalism at Seton Hall University. She lives in Monmouth County.
