Texas House Bill HB3295

Texas 2015 - 84th Regular

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.

Impact

By providing financial aid to local governments that face revenue losses due to the exemption of property taxes for disabled veterans, HB3295 aims to mitigate the negative fiscal impact on these municipalities and counties. This initiative is particularly significant for regions adjacent to military installations, where the proportion of veterans may be higher. The bill promotes a fairer distribution of responsibilities regarding tax policies, assisting local governments in maintaining essential services despite reduced revenue.

Summary

House Bill 3295 addresses the provision of state aid to local governments that are disproportionately affected by ad valorem tax relief granted to disabled veterans. The bill aims to amend Chapter 140 of the Local Government Code by introducing a new section that defines 'affected local governments'—those municipalities and counties losing significant property tax revenue due to veterans' tax exemptions. The state will provide assistance payments to these affected local governments to help offset their losses, ensuring the financial burden of the tax relief is shared equitably across communities in Texas.

Contention

While proponents of HB3295 argue that it is a necessary measure to support communities struggling with income reductions caused by tax exemptions for disabled veterans, there may be concerns regarding the sustainability of state funding. The bill's critics might question the long-term viability of such relief provisions, particularly in times of budget constraint. There could also be apprehension among non-affected local governments feeling ignored in the allocation of state resources, potentially creating dissent over perceived inequities in financial support.