AB 114

Under current law, the Department of Revenue (DOR) operates a lottery, the

proceeds of which must be used for property tax relief for residents of the state.

Also under current law, the veterans and surviving spouses property tax credit

may be claimed by certain U.S. armed forces veterans and by the unremarried

surviving spouses of certain veterans or members of the national guard or reserves

(collectively, "veterans"). The credit is refundable, meaning that if the amount of

credit that may be claimed by a veteran exceeds his or her tax liability, the excess

amount of the credit is refunded to the veteran by check. Refunded credits are paid

from a sum sufficient appropriation of general purpose revenue.

This bill requires DOR to offer a lottery game with a veterans theme. Under

the bill, refunded veterans and surviving spouses property tax credits are paid from

the net lottery proceeds of the veterans-themed lottery game created by the bill and,

if that amount is insufficient to pay all eligible claims, from the current law sum

sufficient appropriation. The bill also transfers general purpose revenue, in an

amount equal to the amount of lottery proceeds used to pay the refunded veterans

and surviving spouses property tax credits, to the veterans trust fund.