Counties Support Flexible Tax Incentives

On January 18, 2023, MACo Legislative Director Kevin Kinnally submitted testimony to the Senate Budget and Taxation Committee in support of SB0134 – Property Tax Credit for Disabled Veterans – Established with amendments.

This bill would require local governments to grant, by law, a prescriptive property tax credit for specified disabled veterans and surviving spouses. SB 134 is a significant unfunded mandate on county governments. A “local option amendment” would relieve that mandate and allow each jurisdiction to weigh these costs appropriately.

Counties stand ready to work with state policymakers to develop flexible and optional tools to create broad or targeted tax incentives but resist state-mandated changes that preclude local input.

From the MACo Testimony:

Under current law, veterans with a 100 percent service-connected disability and surviving spouses are exempt from state and local real property taxes. SB 134 would require local governments to grant a property tax credit equal to the percentage of a disabled veteran’s service-connected disability rating. This bill would drastically undermine county revenues and jeopardize limited local funds for public health, schools, public safety, roadway maintenance, and other essential public services.