Texas House Bill HB5217

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax relief to disabled veterans and surviving spouses of certain armed services members.

Impact

If passed, HB 5217 would amend the Local Government Code to formalize procedures by which affected local governments could apply for assistance. It stipulates that local governments experiencing a loss of ad valorem tax revenues of 2% or more relative to their general fund revenue would qualify to receive state assistance. This structure could promote financial stability in communities that support veterans, ensuring continued funding for public services despite potential revenue losses.

Summary

House Bill 5217 pertains to providing state aid to local governments that are disproportionately affected by the provision of ad valorem tax relief granted to disabled veterans and surviving spouses of armed services members. The essence of the bill is to ensure that the fiscal impact of tax relief targeting these groups is equitably distributed among various local governments, particularly those facing significant financial losses due to this relief. It broadens the definition of 'qualified local government' to encompass those entitled to assistance payments when such tax relief results in revenue shortfalls surpassing a specific threshold.

Contention

While the bill is designed to support communities, it may spark debate among legislators regarding the allocation of financial resources. Critics may argue that state aid could further strain the state budget or that such measures might inadvertently disregard the fiscal responsibilities of local governments. Conversely, advocates highlight the need to protect local governments against the significant burdens posed by tax relief policies for disabled veterans, emphasizing the moral obligation to support military families and their retained benefits.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 140. Miscellaneous Financial Provisions Affecting Municipalities, Counties, And Other Local Governments
  • Section: 011