Honorable Dustin Burrows, Speaker of the House, House of Representatives
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2894 by Hickland (Relating to the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax relief to disabled veterans.), As Passed 2nd House
No fiscal implication to the State is anticipated.
The bill would amend Section 140, Local Government Code, to expand the definition of "local government", within the context of disabled veteran assistance payments, to include any municipality or county. A qualified local government would be a municipality adjacent to a U.S. military installation or a county in which a U.S. military installation is wholly or partly located with lost property tax revenue of at least 2 percent of general fund revenue in a fiscal year.
The bill would add a municipality in a county in which a U.S. military installation is wholly or partly located with a population between 370,000 and 380,000, or between 83,000 and 84,000, or a county with a population of less than 25,000 that is adjacent to two counties that contain the same U.S. Army installation, neither of which has a population greater than 400,000 with lost property tax revenue of at least 10 percent of the local government's general fund revenue for that fiscal year.
Although the bill expands the number of eligible local governments, changing the distribution of funds, the amount of funding available for distribution is a sum-certain appropriation. Therefore, this bill alone would have no fiscal impact to the state.
Local Government Impact
The fiscal implications of the bill cannot be determined at this time.