88R7538 CJC-F
 
  By: Shine H.B. No. 1613
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the provision of state aid to certain local governments
  to offset the cost of the exemption from ad valorem taxation of the
  residence homestead of a 100 percent or totally disabled veteran.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 140.011(a)(1) and (2), Local Government
  Code, are amended to read as follows:
               (1)  "Ad valorem tax [General fund] revenue" means the
  dollar amount of ad valorem taxes imposed [revenue generated] by a
  local government for the tax year in which the local government's
  [from the following sources during a] fiscal year begins [and
  deposited in the dedicated general operating fund of the local
  government during that fiscal year:
                     [(A)  ad valorem taxes;
                     [(B)  sales and use taxes;
                     [(C)  franchise taxes, fees, or assessments
  charged for use of the local government's right-of-way;
                     [(D)  building and development fees, including
  permit and inspection fees;
                     [(E)  court fines and fees;
                     [(F)  other fees, assessments, and charges; and
                     [(G)  interest earned by the local government].
               (2)  "Local government" means a municipality or county 
  [:
                     [(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, Local Government Code, is
  amended by amending Subsections (b), (d), (h), and (i) and adding
  Subsection (j) 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 one [two] percent of the local government's ad
  valorem tax [general fund] revenue for that fiscal year.
         (d)  Subject to Subsection (i), a [A] disabled veteran
  assistance payment made to a qualified local government for a
  fiscal year is calculated by subtracting from the local
  government's lost ad valorem tax revenue calculated under
  Subsection (c) for that fiscal year an amount equal to one percent
  of the local government's ad valorem tax [general fund] revenue for
  that fiscal year.
         (h)  The disabled veterans local government assistance
  account is an account in the general revenue fund administered by
  the [The] comptroller. The account consists of money deposited to
  the credit of the account under Section 151.801, Tax Code, and other
  money deposited to the credit of the account at the direction of the
  legislature. Money in the account may be used only [shall transfer
  funds to a newly created account in the state treasury] for the
  purpose of making payments to which qualified [reimbursement of]
  local governments are entitled under this section.
         (i)  If the comptroller determines that the balance of the
  disabled veterans local government assistance account in a state
  fiscal year is not sufficient to pay the full amount of each
  disabled veterans assistance payment to qualified local
  governments in that year, the comptroller shall proportionately
  reduce the amount of each payment made to the qualified local
  governments that year as necessary to prevent the account from
  becoming insolvent.
         (j)  The comptroller shall adopt rules necessary to
  implement this section.
         SECTION 3.  Section 151.801, Tax Code, is amended by
  amending Subsections (a) and (d) and adding Subsection (c-4) to
  read as follows:
         (a)  Except for [the] amounts otherwise allocated under this
  section [Subsections (b), (c), (c-2), (c-3), and (f)], all proceeds
  from the collection of the taxes imposed by this chapter shall be
  deposited to the credit of the general revenue fund.
         (c-4)  Except for the amounts allocated under Subsections
  (b) and (c), the amount of the proceeds from the collection of the
  taxes imposed by this chapter on the sale, storage, use, or other
  consumption of taxable items inside the boundaries of a United
  States military base shall be deposited to the credit of the
  disabled veterans local government assistance account under
  Section 140.011, Local Government Code. Subsections (c-2), (c-3),
  and (f) do not apply to tax proceeds to which this subsection
  applies.
         (d)  The comptroller shall determine the amount to be
  deposited to the state highway fund under Subsection (b) according
  to available statistical data indicating the estimated average or
  actual consumption or sales of lubricants used to propel motor
  vehicles over the public roadways.  The comptroller shall
  determine the amounts to be deposited to the accounts under
  Subsection (c) according to available statistical data indicating
  the estimated or actual total receipts in this state from taxable
  sales of sporting goods, and according to the specific amounts
  provided in the General Appropriations Act in accordance with
  Subsection (c-1).  The comptroller shall determine the amount to be
  deposited to the fund under Subsection (c-2) according to available
  statistical data indicating the estimated or actual total receipts
  in this state from taxes imposed on sales at retail of
  fireworks.  The comptroller shall determine the amount to be
  deposited to the account under Subsection (c-3) according to
  available statistical data indicating the estimated or actual total
  receipts in this state from taxable sales of horse feed, horse
  supplements, horse tack, horse bedding and grooming supplies, and
  other taxable expenditures directly related to horse ownership,
  riding, or boarding.  The comptroller shall determine the amount to
  be deposited to the credit of the account under Subsection (c-4)
  according to available statistical data indicating the estimated or
  actual total receipts in this state from the sale, storage, use, or
  other consumption of taxable items inside the boundaries of United
  States military bases. If satisfactory data are not available, the
  comptroller may require taxpayers who make taxable sales or uses of
  those lubricants, of sporting goods, of fireworks, [or] of horse
  feed, horse supplements, horse tack, horse bedding and grooming
  supplies, or other taxable expenditures directly related to horse
  ownership, riding, or boarding, or of taxable items inside the
  boundaries of United States military bases to report to the
  comptroller as necessary to make the allocation required by
  Subsection (b), (c), (c-2), [or] (c-3), or (c-4).
         SECTION 4.  Section 140.011, Local Government Code, as
  amended by this Act, applies to the eligibility of a local
  government to apply for, and the calculation of, a disabled veteran
  assistance payment beginning with the fiscal year of the local
  government that ends in the 2023 tax year.
         SECTION 5.  This Act takes effect September 1, 2023.