2015S0411-3 03/10/15
By: Fraser S.B. No. 1368
A BILL TO BE ENTITLED
AN ACT
relating to the provision of state aid to certain local governments
disproportionately affected by the granting of ad valorem tax
relief to disabled veterans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 140, Local Government Code, is amended
by adding Section 140.011 to read as follows:
Sec. 140.011. LOCAL GOVERNMENTS DISPROPORTIONATELY
AFFECTED BY PROPERTY TAX RELIEF FOR DISABLED VETERANS. (a) In
this section:
(1) "Affected local government" means:
(A) a municipality bordered by or adjacent to a
United States military installation and that has for a tax year a
disproportionate share of lost ad valorem tax revenue as the result
of the granting of disabled veteran tax exemptions for that tax
year; and
(B) a county in which a United States military
installation is wholly or partly located and that has for a tax year
a disproportionate share of lost ad valorem tax revenue as the
result of the granting of disabled veteran tax exemptions for that
tax year.
(2) "Disabled veteran assistance payment" means a
payment calculated under this section and made by the state to an
affected local government to partially offset a disproportionate
share of lost ad valorem tax revenue of the affected local
government in a tax year as the result of the granting of disabled
veteran tax exemptions.
(3) "Disabled veteran tax exemption" means an
exemption from ad valorem taxation under Section 11.131, Tax Code.
(4) "Disproportionate share of lost ad valorem tax
revenue" means an amount of lost ad valorem tax revenue equal to or
greater than two percent of a local government's total general fund
revenues in a tax year that the local government is not entitled to
receive as the result of the granting of disabled veteran tax
exemptions for that tax year. For the purpose of this subdivision,
lost ad valorem tax revenue is calculated by multiplying the total
appraised value of all property located within the boundaries of
the local government and exempted from ad valorem taxation as the
result of the granting of disabled veteran tax exemptions for the
tax year by the ad valorem tax rate adopted by the local government
in that tax year under Section 26.05, Tax Code.
(5) "General fund revenues" means all property taxes,
sales and use taxes, franchise taxes, service charges, permit and
inspection fees, court fines and fees, parks and recreation program
fees excluding golf course fees, animal control fees, county
intergovernmental fees, and interest earnings.
(b) To serve the state purpose of ensuring that the cost of
providing ad valorem tax relief to disabled veterans is shared
equitably among the residents of this state, an affected local
government is entitled to receive from the state for each tax year
that the local government is an affected local government a
disabled veteran assistance payment.
(c) A disabled veteran assistance payment to an affected
local government is calculated by subtracting from the lost ad
valorem tax revenue of the affected local government resulting from
the disabled veteran tax exemption in the tax year in which the
application is made under Subsection (d) an amount equal to one
percent of the general fund revenues of the affected local
government's adopted budget in that tax year.
(d) Not later than December 31 of a tax year, a local
government that is an affected local government in that tax year may
submit an application to the comptroller to receive a disabled
veteran assistance payment for that tax year. The application must
be made on a form prescribed by the comptroller.
(e) An affected local government that does not submit an
application to the comptroller by December 31 of a tax year is not
entitled to a disabled veteran assistance payment for that tax
year.
(f) The comptroller shall review each application by a local
government for a disabled veteran assistance payment to determine
whether the local government is an affected local government
entitled to the payment. If the comptroller determines that the
local government is entitled to the payment, the comptroller shall
remit the payment from available funds to the affected local
government not later than April 30 of the year following the tax
year in which the application is made.
SECTION 2. As soon as practicable, but not later than
December 1, 2015, the comptroller of public accounts shall develop
the disabled veteran assistance payment form required by Section
140.011(d), Local Government Code, as added by this Act.
SECTION 3. A local government that is an affected local
government, as that term is defined by Section 140.011(a), Local
Government Code, as added by this Act, for the 2015 tax year is
eligible to apply for a disabled veteran assistance payment, as
that term is defined by Section 140.011(a), Local Government Code,
for that tax year.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.