NJ Woman Fails to Qualify as Surviving Spouse for Property Tax Exemption

New Jersey honors the loyalty and sacrifice of veterans who are 100% disabled by providing them and their surviving spouses with a property tax exemption. Yet a woman from South Plainfield who had lived with a disabled veteran until his death failed to qualify as a surviving spouse. The matter was recently brought to the Tax Court of New Jersey which affirmed her ineligibility. Let’s take a closer look at Gibbons v. Borough of South Plainfield to see why she was denied the exemption.

Overview

Ms. Gibbons and Mr. Haney, a 100% disabled veteran, jointly owned a residential home in South Plainfield. They never legally married, nor did they file for a domestic partnership, but they did identify as husband and wife in public.

In 2019, Mr. Haney applied for and received the Disabled Veteran’s exemption. The couple continued to live together until Mr. Haney passed away in 2021. Ms. Gibbons then applied for the exemption, claiming that she was the surviving spouse under the statute. However, the Borough denied her application because she wasn’t legally married to Mr. Haney.

The decision was appealed to the Tax Court of New Jersey, which was presented with an interesting question: Was Ms. Gibbons entitled to receive the exemption after the death of her partner if she never formally married him?

The Disabled Veteran’s Exemption

N.J.S.A. 54:4-3.30 et seq., also known as the 100% Disabled Veteran Property Tax Exemption, provides disabled veterans with complete property tax relief. To qualify, a person must:

1. Be an honorably discharged veteran.
2. Have active duty service in the U.S. Armed Forces.
3. Be certified by the U.S. Department of Veterans Affairs (VA) as 100% permanently and totally disabled due to a service-connected condition.
4. Own and occupy the property as the primary residence in New Jersey.

The surviving spouse of a veteran who meets the above criteria may also qualify for the exemption under certain conditions:

• The deceased veteran must have been a New Jersey resident at the time of death.
• The surviving spouse must not have remarried or entered a new civil union/domestic partnership.
• VA documentation must be provided to confirm the veteran’s disability status or death in service.

As we’ll see, there must be a legally recognized relationship for the surviving spouse provision to apply.

The “Marriage” Requirement

After reviewing the exemption statute, the court found three legally recognized relationships that allow a person to qualify as a surviving spouse. One is a marriage recognized by the state of New Jersey. Another is a domestic partnership. Finally, there is a civil union. Each of these have one thing in common: paperwork. Couples need to file certain documents with the state to earn the benefits these relationships provide.

What about common law marriage? This type of marriage, recognized in some states, requires that a couple live together for a sufficient period and hold themselves out as married to the public. The vast majority of states, including New Jersey, do not recognize this type of marriage.

Even though she never legally married Mr. Haney, Ms. Gibbons argued that she should be entitled to receive the exemption. She acknowledged that New Jersey does not recognize common law marriages but claimed to have felt discriminated against because other types of relationships are recognized.

The Court’s Analysis

The court found that marriage or its legal equivalent is essential to be deemed a surviving spouse. Since Ms. Gibbons and Mr. Haney never filed for a legally recognized relationship, she could not be deemed his spouse under New Jersey law. Therefore, she did not qualify as a surviving spouse under the exemption statute. Moreover, no common law marriage exists in New Jersey, meaning that it didn’t matter how long she lived with him or how they presented themselves in public. The court noted that she could have legalized her relationship at any time without a religious ceremony, yet she never did.

Decision

The court affirmed the County Board’s judgment and held that Ms. Gibbons was not entitled to the property tax exemption. Due to the nature of property tax exemptions, which essentially allow certain qualifying property owners to obtain discounts or exemptions from the obligation to pay their “fair share” of taxes, they are generally strictly construed by our courts.  By strictly interpreting the spousal requirement, the court ensured that it didn’t overstep its judicial role. This case serves as a reminder for New Jersey residents to learn the criteria for property tax exemptions.

To read the court’s full opinion, click here.