Why This NJ Woman Was Denied the Surviving Spouse Property Tax Exemption
Key Takeaways
- To claim the surviving spouse property tax exemption in New Jersey, your relationship must be legally recognized as a marriage, domestic partnership, or civil union.
- New Jersey has not recognized common law marriage since 1939, regardless of how long a couple lived together or how they presented themselves publicly.
- Property tax exemptions are strictly interpreted by courts, so eligibility must be confirmed before a denial is issued.
New Jersey provides one of the most meaningful financial protections available to veterans: a complete property tax exemption for those who are 100% permanently and totally disabled. That exemption can pass to a surviving spouse after the veteran’s death. But what happens if the couple never legally married?
That was the central question in Gibbons v. Borough of South Plainfield, a recent Tax Court of New Jersey case where a woman was denied the surviving spouse property tax exemption. She had no legally recognized relationship with the disabled veteran she had lived with for years.
What Happened in Gibbons v. Borough of South Plainfield?
Ms. Gibbons and Mr. Haney, a 100% disabled veteran, jointly owned a residential home in South Plainfield. They lived together and referred to each other as husband and wife publicly, but they never formally married, registered a domestic partnership, or entered a civil union.
In 2019, Mr. Haney applied for and received the Disabled Veteran’s property tax exemption under New Jersey’s private property laws. He passed away in 2021. Ms. Gibbons then applied to continue receiving the exemption as his surviving spouse. The Borough of South Plainfield denied the application on the grounds that she had no legally recognized marital status.
She appealed to the Tax Court of New Jersey, which upheld the denial.
What Is the Disabled Veteran’s Property Tax Exemption?
Under N.J.S.A. 54:4-3.30, New Jersey provides a complete property tax exemption to veterans who meet all the following requirements:
- Honorably discharged from the U.S. Armed Forces
- Certified by the VA as 100% permanently and totally disabled due to a service-connected condition
- A New Jersey resident who owns and occupies the property as a primary residence
The valuation date for this exemption is determined by when the veteran first acquires the property or when the VA certifies the disability, whichever applies later.
A surviving spouse may also qualify for the exemption, provided the deceased veteran was a New Jersey resident at the time of death. The survivor has not remarried or formed a new civil union or domestic partnership, and proper VA documentation is on file.
Which Relationships Qualify Under the Statute?
The Tax Court reviewed N.J.S.A. 54:4-3.30 and found exactly three legally recognized relationships that allow someone to be treated as a surviving spouse:
- A marriage recognized by the state of New Jersey
- A domestic partnership
- A civil union
Each one requires official paperwork filed with the state. Without that documentation, there is no recognized legal relationship and no surviving spouse for purposes of the property tax exemption.
Ms. Gibbons acknowledged that New Jersey does not recognize common law marriage. She argued, however, that she felt discriminated against because other types of relationships qualify while hers did not. The court was not persuaded.
Does New Jersey Recognize Common Law Marriage?
No. New Jersey abolished common law marriage in 1939 and has not recognized it since. No matter how long two people live together or how they present themselves in public, the state does not consider them legally married.
This surprises many property owners. If you are considering a New Jersey tax appeal or any other property rights matter, understanding the legal definition of your relationship is essential before assuming you qualify for a benefit.
Why the Court Affirmed the Denial
Property tax exemptions reduce a qualifying owner’s share of the tax burden. Because they shift that burden to other taxpayers, New Jersey courts apply them strictly. Any doubt about eligibility is resolved in favor of taxation, not the claimant.
Ms. Gibbons had no legally recognized relationship with Mr. Haney. The court noted she could have formalized their relationship at any time, even without a religious ceremony, and chose not to. On those facts, the Tax Court affirmed the County Board’s judgment and held that she was not entitled to the property tax exemption.
Property tax attorneys often advise clients to review their eligibility for exemptions well in advance, not only after a denial has been issued. Knowing the requirements early gives property owners time to act while options are still open.
What New Jersey Property Owners Should Know
This case is a clear reminder that informal arrangements carry no legal weight when it comes to property tax benefits. If you want to protect your right to an exemption, your relationship must be formalized under New Jersey law.
It also reflects a broader truth about how the state governs property rights. Just as understanding the definition of eminent domain helps property owners know when the government can take their land, knowing the eligibility rules for a property tax exemption helps them protect the financial benefits tied to their property.
Review your situation before a denial forces your hand.
Not Sure If You Qualify for a Property Tax Exemption?
The rules around property tax exemptions in New Jersey are strict, and a denial can be difficult to overturn. If you have questions about your eligibility or need help responding to a denial, MROD’s property rights attorneys are here to help. Schedule a free consultation.
