The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5554 September 6, 1979 VETERANS: Soldiers' Relief Fund COUNTIES: Soldiers' Relief Fund WORDS AND PHRASES: 'Levy' The tax imposed by counties for the Soldiers' Relief Fund are public funds in the custody of the county treasurer to be disbursed upon certification of the Soldiers' Relief Commission. When collected, such funds may only be used for honorably discharged indigent veterans, indigent widows of veterans and indigent minor children of veterans who have a need for such funds as certified by the appropriate local government official. If the need for funds by eligible persons is less than the amount of taxes collected, there is no purpose served in disbursing the money and the balance may be kept in the fund until needed. The Honorable Lewis Dodak State Representative The Capitol Lansing, Michigan 48909 You have requested my opinion on the following questions concerning 1899 PA 214, as amended, MCLA 35.21 et seq; MSA 4.1051 et seq: '1. Does one-tenth of one mill that is being collected by a county belong to the Veterans' Relief Fund [commonly known as the Soldiers' Relief Fund] of that county? Or must a county collect the one-tenth of one mill separately? '2. If collected, are counties required to use the funds for veterans and their families? '3. Can the counties withhold funds after they have been appropriated for the benefit of veterans?' 1899 PA 214, Sec. 1, MCLA 35.21; MSA 4.1051, states: 'That it shall be the duty of the board of supervisors (1) of the several counties of this state to levy, in the year 1899 and annually thereafter, a tax not exceeding 1/10 of a mill on each dollar, to be levied and collected as provided by law, upon the taxable property of each township and city, for their respective counties, for the purposes of creating a fund for the relief of honorably discharged indigent soldiers, sailors, marines, nurses and the members of women's auxiliaries of all wars or military expeditions in which the United States of America has been, is, or may hereafter be, a participant, and the indigent wives, widows, minor children and mothers of each such indigent or deceased soldier, sailor, marine, nurse and members of the women's auxiliaries: Provided, that funds raised in accordance with the provisions of this section may be expended for the relief of indigent wives and children of soldiers, sailors, marines, nurses and members of the women's auxiliaries during the continuance of present hostilities and prior to the discharge of such soldiers, sailors, marines, nurses and members of the women's auxiliaries: Provided, that in any year which, in the opinion of said board, an emergency justifying the same exists, they may appropriate a sum not to exceed 2/10 of a mill on each dollar for said purpose. Such sums when collected, shall be paid to the county treasuer of the county where such tax is levied in each of the counties in this state, to be paid out by him upon the order of the commission hereinafter provided for, duly signed by the chairman and secretary thereof: Provided, That in case any part of such fund shall not be necessary for the purpose for which it was raised, the same shall remain in the treasury of such county as a soldiers' relief fund, and shall be considered in raising future sums therefor.' [Emphasis supplied] In the case of certification for disbursement of funds by the Soldiers' Relief Commision, (2) the chairman and secretary must execute the order. 1899 PA 214, Sec. 1, supra. For the county departments of veteran affairs, since it is headed by a three person committee pursuant to 1953 PA 162, Sec. 2, supra, the certification for disbursement of funds should be performed by the chairman and secretary of that committee. Your first question whether the 1/10 of a mill collected under 1899 PA 214, supra, belongs to the Soldiers' Relief Fund. 1899 PA 214, Sec. 1, supra, contemplates that the county perform the following two functions: (1) levy a tax not to exceed 1/10 of a mill and (2) collect the tax. The term levy has been defined by the Supreme Court in Blake v Metropolitan Chain Stores, 247 Mich 73, 78-79; 225 NW 587 (1929): 'Stress is laid upon the use of the words 'levied upon or assessed against said premises.' The proceedings for the enforcement of the collection of taxes are simple and easily understood. The property of the assessing district is first listed. A valuation is then placed upon it. After review, the roll is turned over to the officer by whom the taxes are to be spread. After certification of the several sums voted, he apportions the amounts against the several valuations, makes a copy thereof, and adds his certificate thereto. It then becomes the tax roll, and is delivered into the hands of the collecting officer. The levy is then complete. The tax becomes a lien on the real estate listed on the roll. The words 'levied upon' and 'assessed against' have therefore a definite meaning in tax matters. 'To assess a tax is to adjudge and determine what proportion of his property the taxpayer shall contribute to the public. To levy a tax is to make a record of this determination, and to extend the assessment against the taxpayer's property.' Chicago, etc., R. Co. v Klein, 52 Neb 258, 265 (71 NW 1069, 1071).' After a tax is levied and collected pursuant to 1899 PA 214, supra, said moneys are public funds in the custody of the county treasurer to be disbursed upon proper certification of the Soldiers' Relief Commission. As to the amount of the levy, I refer you to OAG, 1932-1934, pp 205, 206 (February 17, 1933): 'Section 1 of the act (1899 PA 214, supra) makes it mandatory upon the Board of Supervisors to levy a tax not to exceed 1/10 mill for the care of indigent soldiers, sailors, their wives, etc. However, I do not find that it is necessary to levy the full 1/10 mill, as the statute provides that the Board of Supervisors shall levy a tax not to exceed 1/10 mill. This, I believe, leaves the amount to be levied within the discretion of the Board of Supervisors, as long as the statute has been reasonably and substantially complied with. In any event, even in case of emergency, I find no authority to levy more than 2/10 of a mill. On the other hand, the mandatory provision has been fulfilled as long as a reasonable tax is levied.' It should be noted that the levy may not exceed the mill limitation on counties provided by the Michigan Constitution. OAG, 1945-1946, No 0-3071, p 196 (January 24, 1945). The second part of your first question refers to the collection of the tax. There is no statutory authority requiring a separate collection of the tax for the Soldiers' Relief Fund. Next you ask if the funds collected must be used for veterans and their families. As stated above, once the tax is collected said moneys are public funds in the custody of the county treasurer to be dispersed by the commission or department. The commission or department administers the fund, including determining the amount to be paid and the method of payment. 1899 PA 214, Sec. 3; MCLA 35.23; MSA 4.1053. The commission may only expend the funds for the purposes set forth in 1899 PA 214, supra. As to your third question, 1899 PA 214, supra, Sec. 3 provides: 'The supervisors of each township and ward in each of the counties of this state, and where there is no ward supervisor the aldermen of the several wards of every incorporated city in this state, shall, on or before the last Monday in September in each year, make and place in the hands of the soldiers' relief commission of the county, a list of all the persons entitled to relief under the provisions of this act, and the soldiers' relief commission, on the first Monday in October in each year, shall proceed to determine the amount necessary for aid and relief to be granted such persons under this act, which shall be then and there recorded in the books to be kept by the secretary of said soldiers' relief commission. The commission may determine not only the sum to be paid, but the manner of paying the same, and may discontinue the payment of such relief in their discretion. Appeal may be taken therefrom to the circuit court of such county, by certiorari by filing application therefor with the clerk within 15 days following the making of such decision. The court shall hear the case de novo and its decision shall be final.' Thus, it is clear that funds may only be expended for honorably discharged indigent veterans, indigent widows of veterans, and indigent minor children of veterans who have need for such funds as certified by appropriate local government officials. If the need for funds for eligible persons is less than the amount of taxes collected there is no purpose served in disbursing the money and the balance may be kept in the fund until needed. Frank J. Kelley Attorney General (1)
(2)
In counties where the county board of commissioners has created a county department of veterans' affairs, the power and duties of the Soldiers' Relief Commission are transferred to the county department of veterans' affairs which administers 1899 PA, 214, supra. 1953 PA 192, Sec. 2, MCLA 35.622; MSA 4.1153(2).