Texas House Bill HB4150

Texas 2021 - 87th Regular

Caption

Relating to the applicability of the law governing the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax relief to disabled veterans.

Impact

The bill introduces amendments that specifically target municipalities located near military installations and counties with smaller populations that are adjacent to other counties with notable military presence. This is an essential consideration as it helps local governments that may experience fiscal strain due to the allocation of tax relief for veterans, thus ensuring they continue to receive necessary support for servicing their communities. The application of this new statute will commence with the fiscal year ending in the 2021 tax year, which indicates a timely response to concerns raised by local governments in proximity to military sites.

Summary

House Bill 4150 is a legislative proposal aimed at amending the Local Government Code, specifically concerning the provision of state aid to local governments adversely affected by the ad valorem tax relief granted to disabled veterans. The bill defines the eligible local governments and stipulates the conditions under which they can apply for assistance. The impact of the bill is significant, as it seeks to clarify and expand the criteria for local governments that qualify for this aid, ensuring that those most affected by tax relief policies are appropriately supported by state funds.

Contention

While the bill's intention is to protect local governments impacted by tax relief for disabled veterans, it may raise questions regarding the adequacy and fairness of the state aid system overall. Notably, there could be debate over whether the defined eligibility criteria might exclude some local governments that are also facing financial challenges but do not fit squarely within the specified parameters. Additionally, stakeholders may argue about the sustainability of funding this assistance amidst broader budget considerations, which could result in contention as the bill moves through the legislative process.