By: Fraser S.B. No. 1368
(In the Senate - Filed March 12, 2015; March 18, 2015, read
first time and referred to Committee on Finance; April 14, 2015,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 13, Nays 0, 1 present not voting;
April 14, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1368 By: Bettencourt
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) "General fund revenue" means revenue generated by
a local government from the following sources during a fiscal year
and deposited in the dedicated general operating fund of the local
government during that fiscal year:
(A) ad valorem taxes;
(B) sales and use taxes;
(C) franchise taxes, fees, or assessments
charged for use of the local government's right-of-way;
(D) building and development fees, including
permit and inspection fees;
(E) court fines and fees;
(F) other fees, assessments, and charges; and
(G) interest earned by the local government.
(2) "Local government" means:
(A) a municipality adjacent to a United States
military installation; and
(B) a county in which a United States military
installation is wholly or partly located.
(3) "Qualified local government" means a local
government entitled to a disabled veteran assistance payment under
this section.
(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, a local government is
entitled to a disabled veteran assistance payment from the state
for each fiscal year that the local government is a qualified local
government. A local government is a qualified local government for
a fiscal year if the amount of lost ad valorem tax revenue
calculated under Subsection (c) for that fiscal year is equal to or
greater than two percent of the local government's general fund
revenue for that fiscal year.
(c) For the purposes of this section, the amount of a local
government's lost ad valorem tax revenue for a fiscal year is
calculated by multiplying the ad valorem tax rate adopted by the
local government under Section 26.05, Tax Code, for the tax year in
which the fiscal year begins by the total appraised value of all
property located in the local government that is granted an
exemption from taxation under Section 11.131, Tax Code, for that
tax year.
(d) A disabled veteran assistance payment made to a
qualified local government for a fiscal year is calculated by
subtracting from the local government's lost ad valorem tax revenue
calculated under Subsection (c) for that fiscal year an amount
equal to one percent of the local government's general fund revenue
for that fiscal year.
(e) Not later than April 1 of the first year following the
end of a fiscal year for which a qualified local government is
entitled to a disabled veteran assistance payment, a qualified
local government may submit an application to the comptroller to
receive a disabled veteran assistance payment for that fiscal year.
The application must be made on a form prescribed by the
comptroller. The comptroller may require the qualified local
government to submit an independent audit otherwise required by law
to be prepared for the local government for the fiscal year for
which a qualified local government is entitled to the payment.
(f) A qualified local government that does not submit an
application to the comptroller by the date prescribed by Subsection
(e) is not entitled to a disabled veteran assistance payment for the
fiscal year for which that deadline applies.
(g) The comptroller shall review each application by a local
government to determine whether the local government is entitled to
a disabled veteran assistance 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
qualified local government not later than the 30th day after the
date the application for the payment 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(e), Local Government Code, as added by this Act.
SECTION 3. A local government that is a qualified local
government, as that term is defined by Section 140.011(a), Local
Government Code, as added by this Act, for a fiscal year that began
in the 2014 tax year is eligible to apply for a disabled veteran
assistance payment as prescribed by Section 140.011, Local
Government Code, for that fiscal 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.
* * * * *