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A BILL TO BE ENTITLED
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AN ACT
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relating to the provision of state aid to certain local governments |
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disproportionately affected by the granting of ad valorem tax |
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relief to disabled veterans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 140, Local Government Code, is amended |
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by adding Section 140.011 to read as follows: |
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Sec. 140.011. LOCAL GOVERNMENTS DISPROPORTIONATELY |
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AFFECTED BY PROPERTY TAX RELIEF FOR DISABLED VETERANS. (a) In |
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this section: |
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(1) "General fund revenue" means revenue generated by |
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a local government from the following sources during a fiscal year |
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and deposited in the dedicated general operating fund of the local |
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government during that fiscal year: |
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(A) ad valorem taxes; |
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(B) sales and use taxes; |
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(C) franchise taxes, fees, or assessments |
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charged for use of the local government's right-of-way; |
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(D) building and development fees, including |
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permit and inspection fees; |
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(E) court fines and fees; |
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(F) other fees, assessments, and charges; and |
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(G) interest earned by the local government. |
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(2) "Local government" means: |
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(A) a municipality adjacent to a United States |
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military installation; and |
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(B) a county in which a United States military |
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installation is wholly or partly located. |
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(3) "Qualified local government" means a local |
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government entitled to a disabled veteran assistance payment under |
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this section. |
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(b) To serve the state purpose of ensuring that the cost of |
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providing ad valorem tax relief to disabled veterans is shared |
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equitably among the residents of this state, a local government is |
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entitled to a disabled veteran assistance payment from the state |
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for each fiscal year that the local government is a qualified local |
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government. A local government is a qualified local government for |
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a fiscal year if the amount of lost ad valorem tax revenue |
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calculated under Subsection (c) for that fiscal year is equal to or |
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greater than two percent of the local government's general fund |
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revenue for that fiscal year. |
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(c) For the purposes of this section, the amount of a local |
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government's lost ad valorem tax revenue for a fiscal year is |
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calculated by multiplying the ad valorem tax rate adopted by the |
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local government under Section 26.05, Tax Code, for the tax year in |
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which the fiscal year begins by the total appraised value of all |
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property located in the local government that is granted an |
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exemption from taxation under Section 11.131, Tax Code, for that |
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tax year. |
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(d) A disabled veteran assistance payment made to a |
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qualified local government for a fiscal year is calculated by |
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subtracting from the local government's lost ad valorem tax revenue |
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calculated under Subsection (c) for that fiscal year an amount |
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equal to one percent of the local government's general fund revenue |
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for that fiscal year. |
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(e) Not later than April 1 of the first year following the |
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end of a fiscal year for which a qualified local government is |
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entitled to a disabled veteran assistance payment, a qualified |
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local government may submit an application to the comptroller to |
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receive a disabled veteran assistance payment for that fiscal year. |
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The application must be made on a form prescribed by the |
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comptroller. The comptroller may require the qualified local |
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government to submit an independent audit otherwise required by law |
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to be prepared for the local government for the fiscal year for |
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which a qualified local government is entitled to the payment. |
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(f) A qualified local government that does not submit an |
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application to the comptroller by the date prescribed by Subsection |
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(e) is not entitled to a disabled veteran assistance payment for the |
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fiscal year for which that deadline applies. |
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(g) The comptroller shall review each application by a local |
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government to determine whether the local government is entitled to |
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a disabled veteran assistance payment. If the comptroller |
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determines that the local government is entitled to the payment, |
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the comptroller shall remit the payment from available funds to the |
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qualified local government not later than the 30th day after the |
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date the application for the payment is made. |
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SECTION 2. As soon as practicable, but not later than |
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December 1, 2015, the comptroller of public accounts shall develop |
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the disabled veteran assistance payment form required by Section |
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140.011(e), Local Government Code, as added by this Act. |
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SECTION 3. A local government that is a qualified local |
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government, as that term is defined by Section 140.011(a), Local |
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Government Code, as added by this Act, for a fiscal year that began |
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in the 2014 tax year is eligible to apply for a disabled veteran |
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assistance payment as prescribed by Section 140.011, Local |
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Government Code, for that fiscal year. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |