H.B. No. 2894
 
 
 
 
AN ACT
  relating to the provision of state aid to certain local governments
  disproportionately affected by the granting of ad valorem tax
  relief to disabled veterans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 140.011(a)(2), Local Government Code, is
  amended to read as follows:
               (2)  "Local government" means:
                     (A)  a municipality [adjacent to a United States
  military installation]; and
                     (B)  a county [in which a United States military
  installation is wholly or partly located].
         SECTION 2.  Section 140.011(b), Local Government Code, is
  amended to read as follows:
         (b)  To serve the state purpose of ensuring that the cost of
  providing ad valorem tax relief to disabled veterans is shared
  equitably among the residents of this state, a local government is
  entitled to a disabled veteran assistance payment from the state
  for each fiscal year that the local government is a qualified local
  government.  A local government is a qualified local government for
  a fiscal year if the amount of lost ad valorem tax revenue
  calculated under Subsection (c) for that fiscal year is equal to or
  greater than:
               (1)  two percent of the local government's general fund
  revenue for that fiscal year if the local government is:
                     (A)  a municipality adjacent to a United States
  military installation; or
                     (B)  a county in which a United States military
  installation is wholly or partly located; and
               (2)  10 percent of the local government's general fund
  revenue for that fiscal year if the local government is:
                     (A)  a municipality in a county:
                           (i)  described by Subdivision (1)(B) that
  has a population of:
                                 (a)  more than 370,000 but not more
  than 380,000; or
                                 (b)  more than 83,000 but not more than
  84,000; or
                           (ii)  described by Paragraph (B); or
                     (B)  a county with a population of less than
  25,000 that is adjacent to two counties that contain the same United
  States Army installation, neither of which has a population greater
  than 400,000.
         SECTION 3.  Section 140.011(a)(2), Local Government Code, as
  amended by this Act, applies only to the eligibility of a local
  government to apply for a disabled veteran assistance payment
  beginning with the fiscal year of the local government that ends in
  the 2025 tax year.
         SECTION 4.  This Act takes effect September 1, 2025.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2894 was passed by the House on April
  23, 2025, by the following vote:  Yeas 148, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2894 on May 23, 2025, by the following vote:  Yeas 137, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2894 was passed by the Senate, with
  amendments, on May 19, 2025, by the following vote:  Yeas 30, Nays
  1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor