SENATE BILL REPORT
SB 5890
BYSenators Conner, Bauer and Rasmussen
Modifying levy rate for the veteran's assistance fund.
Senate Committee on Ways & Means
Senate Hearing Date(s):March 3, 1989
Senate Staff:William Bafus (786-7715)
AS OF MARCH 3, 1989
BACKGROUND:
Current law requires that counties levy a property tax of between 1 1/8 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 1 1/8 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 1 1/8 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 1 1/4 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