Committee rescinds amendment after staff says means test in SB 387 could remove benefit for thousands of veterans

Senator Mark Meek opened a work session on Senate Bill 387 on May 28, 2025 and the committee received a staff summary of the bill’s changes and fiscal implications.

A committee staffer summarized the bill: “Senate Bill 387 increases two current exemption amounts for disabled veterans and surviving spouses of veterans, and creates two new exemption amounts. It also requires a means test for all four exemption amounts.” The staffer added that a dash‑7 amendment clarifies taxable income definitions and that the amendment would appropriate an unspecified amount of state general fund to the Department of Revenue for the 2025–27 biennium to pay county treasurers for foregone property tax revenue related to the two new partial exemptions.

Senator Patty Patterson asked directly whether any veterans would lose eligibility under the proposed means test. A staff member replied, “it does appear that some would lose the exemption through the new[s] test,” and later provided the staff estimate that roughly 40,000 residents currently receive the exemption and “it could be up to 5 or 6,000 that lose the exemption due to the new means test.”

Committee members pressed for clarification of the means‑test thresholds. Staff described the threshold as $120,000 of taxable income for a separate return and $240,000 for a joint return and confirmed the distributional analysis comparing current recipients to the new thresholds.

Vice Chair McLean moved adoption of the dash‑7 amendment but later rescinded the motion. Chair Meek explained the committee would reschedule an informational meeting to “have a better understanding of what we’re adopting,” and closed the work session on SB 387 without adopting the amendment.

The committee took no formal action on SB 387; the amendment motion was withdrawn and staff and members agreed to a future informational meeting to review effects and intended outcomes.