SENATE BILL REPORT

SB 6663

BYSenators Lee, Bender and Anderson

Authorizing a county tax for housing assistance for alcoholics.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 4, 1988

Senate Staff:William Bafus (786-7437)

AS OF FEBRUARY 3, 1988

BACKGROUND:

Decent and secure housing is needed for low income abusers of alcohol and other drugs, both those in treatment programs and others.  However, the supply of suitable and affordable low-cost housing is limited and decreasing, especially in urban areas. Recent changes in law provided for state payments directly to local agencies which provide treatment for alcoholics and to agencies which provide room and board to abusers unwilling to enter treatment programs.  However, the portion of these payments which can be used for direct housing costs -- usually $125 to $150 per month -- is too low to cover costs in many urban housing markets.

SUMMARY:

A county sales tax on alcoholic beverages is authorized.  The tax is three percent of the wholesale selling price for beer and wine and three percent of the retail selling price of distilled spirits.  Imposition of the tax must be approved by the county's voters, and it will expire six years after such approval is obtained.  The Department of Revenue will administer and collect the tax and will retain two percent of the proceeds to defray its costs.

The net proceeds of the tax will be returned to the county imposing it to be used by the county alcoholism program coordinator to provide housing and support services for eligible recipients.  The permitted uses of the money include acquisition via construction, purchase, lease or rental of suitable housing; maintenance and repair of such housing; support services for eligible persons; and program administration costs connected with the above.  Example support services include employment and training, child care and transportation.  Support service costs are limited to twenty percent of the cost of acquired housing units, but may be continued forward from year to year.  These may be provided to eligible residents of other housing units but at a lower priority.

Persons eligible to be served by this program include low- income alcoholics or other substance abusers who have been screened by the county alcoholism program and identified as needing services and other low-income individuals with alcohol- related problems such as homeless or troubled youth or the mentally ill.  Low-income is defined as less than fifty percent of area median household income.

Appropriation:    none

Revenue:    none

Fiscal Note:      available