SENATE BILL REPORT

SB 6368

BYSenators Conner and Bauer

Revising the property tax imposed for veterans' assistance.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 1, 1988; February 8, 1988

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Bauer, Deccio, Gaspard, Johnson, Lee, Moore, Saling, Talmadge, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:William Bafus (786-7437)

                  February 8, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 8, 1988

BACKGROUND:

Current law requires that counties levy a property tax of between one and one-eighth cents and 27 cents per $1,000 of assessed value for the support of a veteran's relief fund.  This fund is to be used to provide needed income assistance support to honorably discharged veterans of the armed forces of the United States or to their indigent spouses or dependents.  If a county's veterans' assistance fund has a balance as of the first Tuesday of September of any year equal to or greater than one and one-eighth cents multiplied by the value of taxable property, this levy may be reduced or foregone. 

There are some counties in which this levy has not been increased above the minimum one and one-eighth cents per $1,000 of assessed value for many years.  Concerns have been expressed as to the adequacy of these fund balances to support the demands placed upon them for veterans' assistance payments, especially in those counties with large and growing numbers of retired military personnel.

SUMMARY:

The minimum levy rate for the counties' veterans' assistance funds is increased to one and one-quarter cents per $1,000 of assessed value.  The solvency test is changed to reflect this increase in the minimum levy.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Senator Conner (for); George Kirkpatrick, Disabled American Veterans (for); John Libby, Veterans of Foreign Wars (for); Gary Lowe, Washington State Association of Counties (against)