Property tax deductions currently available to disabled veterans in single-family homes and condos may soon be extended to disabled veterans who own and live in cooperatives and mutual housing corporations as well.
In a recent press release, New Jersey State Assembly members John Armato (D-Atlantic) and Vincent Mazzeo (D-Atlantic) announced their joint sponsorship of a bill (A-911/S-956) to extend the state’s veterans’ property tax deduction to residents of cooperatives and mutual housing corporations. The bill is now making its way to Governor Phil Murphy.
The release notes that in New Jersey, 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 multifamily home, or an individual unit in a condominium or apartment building. The bill 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. In those cases, 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.
According to the assembly members' 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.”
The bill passed in the full Senate, and according to Armato and Mazzeo had unanimous passage in the full Assembly last week, bringing it one step closer to becoming law.