Build a Better: Veterans Tax Policy
By Babatunde Odubekun
“There is no end to the good you can do if you don’t care who gets the credit.” - General Colin L. Powell, (Ret.)
As America’s longest war approaches its third decade, service members and their families continue to face hurdles while transitioning back into civilian life. Over the past 20 years more than 3 million Americans have served in uniform,[1] and while we acknowledge and thank our veterans for their sacrifice to our nation, there are ample opportunities to make good on that most sacred promise to never leave anyone behind.
Your Vote, Your Voice. This year, New Jersey voters have three ballot questions to consider: a Constitutional amendment to legalize marijuana, a property tax deduction and exemption for peacetime veterans, and a Constitutional amendment to change the legislative redistricting schedule if Census data is delayed. Our focus is on State Public Question #2, the Property Tax Deduction for Peacetime Veterans.[2]
In the fields of education[3], employment[4], entrepreneurship[5], and housing, there is much that can be done by government – at each level – to thank our servicemembers for their efforts and their service both at home and abroad. In New Jersey, all voters can do our part this year by voting Yes to approve a constitutional amendment extending a $250 property tax deduction to veterans who did not serve in times of war, and authorizing a 100% property tax exemption to certain totally disabled veterans.
Policy, Incentives, & Benefits. Veterans services are available through the VA[6], the New Jersey Department of Military and Veterans Affairs[7], a number of County and Municipal Veterans Services Offices[8], and non-profit organizations[9]. Notwithstanding these offices and the programs they administer there are, as ever, policy gaps that need to be filled.
Vote Yes on Public Question #2. From now[10] through Tuesday, November 3, 2020, New Jersey voters have the opportunity to approve this important Ballot Question, which will benefit peacetime veterans with a valuable tax deduction. We believe in honoring sacrifice, which is why a number of states, including New Jersey, extend our thanks to veterans and their families not only through token gestures, but also as a matter of public policy[11].
As New Jersey State Senator Fred Madden (LD-4) has commented, “while $250 may not seem like a large sum, when someone is in a retirement community, often living on a fixed income, every dollar counts.” We couldn’t agree more, which is why we urge all New Jerseyans to vote Yes on Ballot Question 2.
Here’s the text of the Ballot Question:
Do you approve amending the Constitution to give a $250 property tax deduction to veterans who did not serve in time of war? Do you also approve amending the Constitution to give a 100 percent property tax exemption to certain totally disabled veterans who did not serve in time of war?
The widow or widower of these veterans also would receive this $250 deduction or 100 percent exemption after the veteran’s death.
Interpretive Statement
This amendment would give a $250 property tax deduction to veterans who did not serve in time of war. The widow or widower of a veteran who did not serve in time of war would receive this deduction after the veteran’s death.
The amendment also extends the 100 percent property tax exemption for disabled veterans to veterans who became disabled during peacetime military service. Persons who became disabled during peacetime military service and reside in a continuing care retirement community would not receive the 100 percent exemption for disabled veterans.
Currently, these property tax deductions and exemptions are only given to veterans who served during time of war. The amendment would give the deductions and exemptions to veterans who did not serve in wartime.
Policy Solutions
The Path Forward. While this year’s Ballot Question is an important step in the right direction, there are a number of housing and tax related solutions to veterans housing concerns that need to be addressed. Moreover, the diversity of veterans’ experiences between those who own their homes, those in continuing care and retirement facilities, those who rent, and those who experience homelessness – both sheltered and unsheltered, long-term or intermittent – are tremendous[12]. That being said, we support policy fixes wherever we can. There are glimmers of hope in both chambers of the State House, and we intend to help make an impact there.
By the Numbers. Seventeen out of every 10,000 people in the United States experience homelessness on a given night.[13] One in five homeless Americans is a veteran. This is a blemish on our national conscience. Thankfully, a number of veterans organizations in New Jersey play active and critical roles in working to alleviate the stress of homelessness and to end homelessness among veterans[14].
Pending Legislation. While it is important for non-profits and the private sector to get involved, the fact remains that veterans deserve all the help they can get. At Babs PAC we support common sense legislative solutions like S-2197 (2018), introduced in 2017 by Senator Troy Singleton (LD-7) and Senator Anthony Bucco (LD-25), which would provide a gross income tax credit equal to 18% of a disabled veteran’s rent[15], and A-4092 (2020), sponsored by Assemblyman Ronald S. Dancer (LD-12) and Assemblyman Daniel R. Benson (LD-14), which establishes a disabled veteran tenant gross income tax credit[16].