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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) "Affected local government" means: |
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(A) a municipality bordered by or adjacent to a |
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United States military installation and that has for a tax year a |
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disproportionate share of lost ad valorem tax revenue as the result |
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of the granting of disabled veteran tax exemptions for that tax |
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year; and |
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(B) a county in which a United States military |
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installation is wholly or partly located and that has for a tax year |
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a disproportionate share of lost ad valorem tax revenue as the |
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result of the granting of disabled veteran tax exemptions for that |
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tax year. |
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(2) "Disabled veteran assistance payment" means a |
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payment calculated under this section and made by the state to an |
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affected local government to partially offset a disproportionate |
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share of lost ad valorem tax revenue of the affected local |
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government in a tax year as the result of the granting of disabled |
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veteran tax exemptions. |
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(3) "Disabled veteran tax exemption" means an |
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exemption from ad valorem taxation under Section 11.131, Tax Code. |
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(4) "Disproportionate share of lost ad valorem tax |
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revenue" means an amount of lost ad valorem tax revenue equal to or |
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greater than two percent of a local government's total general fund |
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revenues in a tax year that the local government is not entitled to |
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receive as the result of the granting of disabled veteran tax |
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exemptions for that tax year. For the purpose of this subdivision, |
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lost ad valorem tax revenue is calculated by multiplying the total |
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appraised value of all property located within the boundaries of |
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the local government and exempted from ad valorem taxation as the |
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result of the granting of disabled veteran tax exemptions for the |
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tax year by the ad valorem tax rate adopted by the local government |
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in that tax year under Section 26.05, Tax Code. |
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(5) "General fund revenues" means all property taxes, |
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sales and use taxes, franchise taxes, service charges, permit and |
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inspection fees, court fines and fees, parks and recreation program |
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fees excluding golf course fees, animal control fees, county |
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intergovernmental fees, and interest earnings. |
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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, an affected local |
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government is entitled to receive from the state for each tax year |
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that the local government is an affected local government a |
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disabled veteran assistance payment. |
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(c) A disabled veteran assistance payment to an affected |
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local government is calculated by subtracting from the lost ad |
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valorem tax revenue of the affected local government resulting from |
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the disabled veteran tax exemption in the tax year in which the |
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application is made under Subsection (d) an amount equal to one |
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percent of the general fund revenues of the affected local |
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government's adopted budget in that tax year. |
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(d) Not later than December 31 of a tax year, a local |
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government that is an affected local government in that tax year may |
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submit an application to the comptroller to receive a disabled |
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veteran assistance payment for that tax year. The application must |
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be made on a form prescribed by the comptroller. |
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(e) An affected local government that does not submit an |
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application to the comptroller by December 31 of a tax year is not |
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entitled to a disabled veteran assistance payment for that tax |
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year. |
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(f) The comptroller shall review each application by a local |
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government for a disabled veteran assistance payment to determine |
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whether the local government is an affected local government |
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entitled to the payment. If the comptroller determines that the |
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local government is entitled to the payment, the comptroller shall |
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remit the payment from available funds to the affected local |
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government not later than April 30 of the year following the tax |
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year in which the application 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(d), Local Government Code, as added by this Act. |
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SECTION 3. A local government that is an affected 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 the 2015 tax year is |
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eligible to apply for a disabled veteran assistance payment, as |
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that term is defined by Section 140.011(a), Local Government Code, |
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for that tax 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. |