KRS 40.005: Authorization to enact veterans' bonus.

The General Assembly shall by law provide for the issuance and sale of bonds of the

Commonwealth, notwithstanding the limitation of indebtedness in Section 49 or any

other section of the Constitution of Kentucky, which shall be in addition to all other

bonds of the Commonwealth heretofore authorized. The proceeds of such additional

bonds, or so many thereof as may be necessary for the purpose, shall be used and

appropriated solely for the purpose of paying a cash bonus not to exceed $500 for service

outside the continental limits of the United States, and $300 for service in the continental

limits of the United States to the veterans, their widows or heirs, or next of kin, of the

Spanish-American War, World War I, World War II, and the Korean conflict, who w ere

residents of the Commonwealth at the time of their entry into the service and at least six

(6) months prior thereto. The General Assembly at the same session authorizing the

issuance of the bonds shall levy a tax upon all retail sales at such a rate as will pay the

interest upon and retire the bonds in no less than thirty (30) years, provided that retail

sales of food and food products, medicines, and clothing may be exempted from such tax.