On February 14, 2024, Legislative Director Kevin Kinnally testified before the Senate Budget and Taxation Committee in opposition to SB 639- Property Tax Exemption- Disabled Veterans- Service Connected Disability. This bill would expand eligibility for a property tax exemption of a disabled veteran to include veterans with a service-connected disability of at least 80%, which would have a significant fiscal impact on county governments.
MACo does not raise policy objections with this goal – county concerns are merely practical and cost-driven, as this bill would have a sweeping, adverse effect on local revenues sorely needed to fund schools, housing, public health, public safety, roadway maintenance, and other essential public services.
Under current law, for a property tax exemption to be granted to a disabled veteran or surviving spouse, the disabled veteran must have a 100% service-connected disability. By expanding eligibility to include disabled veterans with at least an 80% service disability, counties would lose at least $23 million of their most reliable revenue source per annum.
SB 639’s cross-file, HB 862, was heard on February 20, 2024 in the House Ways and Means Committee. Kevin Kinnally testified in opposition to this bill.
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