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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 and surviving spouses of certain armed |
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services members. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 140.011, Local Government |
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Code, is amended 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 AND SURVIVING |
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SPOUSES OF CERTAIN ARMED SERVICES MEMBERS. |
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SECTION 2. Section 140.011(a)(3), Local Government Code, is |
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amended to read as follows: |
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(3) "Qualified local government" means a local |
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government entitled to a military exemption [disabled veteran] |
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assistance payment under this section. |
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SECTION 3. Sections 140.011(b), (c), (d), (e), (f), and |
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(g), Local Government Code, are amended to read as follows: |
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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 and surviving |
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spouses of members of the armed services killed or fatally injured |
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in the line of duty is shared equitably among the residents of this |
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state, a local government is entitled to a military exemption |
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[disabled veteran] assistance payment from the state for each |
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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 or 11.133, Tax Code, |
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for that tax year. |
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(d) A military exemption [disabled veteran] assistance |
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payment made to a qualified local government for a fiscal year is |
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calculated by subtracting from the local government's lost ad |
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valorem tax revenue calculated under Subsection (c) for that fiscal |
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year an amount equal to one percent of the local government's |
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general fund revenue for that fiscal year. |
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(e) Not later than May [April] 1 of the first year following |
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the end of a fiscal year for which a qualified local government is |
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entitled to a military exemption [disabled veteran] assistance |
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payment, a qualified local government may submit an application to |
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the comptroller to receive a military exemption [disabled veteran] |
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assistance payment for that fiscal year. The application must be |
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made on a form prescribed by the comptroller. The comptroller may |
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require the qualified local government to submit an independent |
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audit otherwise required by law to be prepared for the local |
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government for the fiscal year for which a qualified local |
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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 military exemption [disabled veteran] |
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assistance payment for the fiscal year for which that deadline |
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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 military exemption [disabled veteran] assistance payment. If the |
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comptroller determines that the local government is entitled to the |
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payment, the comptroller shall remit the payment from available |
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funds to the qualified local government not later than the 30th day |
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after the date the application for the payment is made. |
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SECTION 4. Section 140.011, Local Government Code, as |
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amended by this Act, applies to the deadline for a local government |
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to apply for, and the calculation of the amount of, a military |
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exemption assistance payment beginning with the fiscal year of the |
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local government that ends in the 2025 tax year. |
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SECTION 5. This Act takes effect September 1, 2025. |