Veterans' property tax exemption.

09LSO-0306.L1

CORRECTED COPY

FISCAL NOTE

This bill expands the veterans’ property tax exemption to include honorably discharged veterans (including surviving spouses) who served in the military during the following periods:

• Between January 1, 1947 and June 26, 1950 (between World War II and the Korean War)
• Between February 1, 1955 and February 27, 1961 (between the Korean War and the Vietnam War)

Based on information from the U.S. Census Bureau’s 2005-2007 American Community Survey (provided by the Division of Economic Analysis), the following is estimated:

• The number of veterans who served between World War II and the Korean War is estimated at 253, with a margin of error of +/-107, resulting in a maximum estimate of 360 veterans

• The number of veterans who served between the Korean War and the Vietnam War is estimated at 5,775, with a margin of error of +/- 502, resulting in a maximum estimate of 6,277 veterans

The veterans’ exemption is limited to an annual exemption of $3,000 of assessed value, or $212 in property tax per year, based on the average 2008 municipal mill levy of 70.832 mills.

The total property tax exemption for veterans serving between World War II and the Korean War is estimated at $53,636 per year ($212 x 253 veterans). With the margin of error stated above, this impact could reach a maximum of $76,320 per year ($212 x 360).

The total property tax exemption for veterans serving between the Korean War and the Vietnam War is estimated at $1,224,300 per year ($212 x 5,775 veterans). With the margin of error stated above, this impact could reach a maximum of $1,330,724 per year ($212 x 6,277).

Since the veterans’ exemption is also available to surviving spouses of veterans, the fiscal impact of including these groups of veterans could approach the maximum estimates, totaling $1,407,044.

Prepared by:   Dean Temte, LSO    Phone: 777-7881

(Information provided by Doug Shope, Military Dept.; 772-5235:

Marvin Applequist, Dept. of Revenue; 777-5235)