88R7538 CJC-F
By: Shine H.B. No. 1613
A BILL TO BE ENTITLED
AN ACT
relating to the provision of state aid to certain local governments
to offset the cost of the exemption from ad valorem taxation of the
residence homestead of a 100 percent or totally disabled veteran.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 140.011(a)(1) and (2), Local Government
Code, are amended to read as follows:
(1) "Ad valorem tax [General fund] revenue" means the
dollar amount of ad valorem taxes imposed [revenue generated] by a
local government for the tax year in which the local government's
[from the following sources during a] fiscal year begins [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 municipality or county
[:
[(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].
SECTION 2. Section 140.011, Local Government Code, is
amended by amending Subsections (b), (d), (h), and (i) and adding
Subsection (j) to read as follows:
(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 one [two] percent of the local government's ad
valorem tax [general fund] revenue for that fiscal year.
(d) Subject to Subsection (i), a [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 ad valorem tax [general fund] revenue for
that fiscal year.
(h) The disabled veterans local government assistance
account is an account in the general revenue fund administered by
the [The] comptroller. The account consists of money deposited to
the credit of the account under Section 151.801, Tax Code, and other
money deposited to the credit of the account at the direction of the
legislature. Money in the account may be used only [shall transfer
funds to a newly created account in the state treasury] for the
purpose of making payments to which qualified [reimbursement of]
local governments are entitled under this section.
(i) If the comptroller determines that the balance of the
disabled veterans local government assistance account in a state
fiscal year is not sufficient to pay the full amount of each
disabled veterans assistance payment to qualified local
governments in that year, the comptroller shall proportionately
reduce the amount of each payment made to the qualified local
governments that year as necessary to prevent the account from
becoming insolvent.
(j) The comptroller shall adopt rules necessary to
implement this section.
SECTION 3. Section 151.801, Tax Code, is amended by
amending Subsections (a) and (d) and adding Subsection (c-4) to
read as follows:
(a) Except for [the] amounts otherwise allocated under this
section [Subsections (b), (c), (c-2), (c-3), and (f)], all proceeds
from the collection of the taxes imposed by this chapter shall be
deposited to the credit of the general revenue fund.
(c-4) Except for the amounts allocated under Subsections
(b) and (c), the amount of the proceeds from the collection of the
taxes imposed by this chapter on the sale, storage, use, or other
consumption of taxable items inside the boundaries of a United
States military base shall be deposited to the credit of the
disabled veterans local government assistance account under
Section 140.011, Local Government Code. Subsections (c-2), (c-3),
and (f) do not apply to tax proceeds to which this subsection
applies.
(d) The comptroller shall determine the amount to be
deposited to the state highway fund under Subsection (b) according
to available statistical data indicating the estimated average or
actual consumption or sales of lubricants used to propel motor
vehicles over the public roadways. The comptroller shall
determine the amounts to be deposited to the accounts under
Subsection (c) according to available statistical data indicating
the estimated or actual total receipts in this state from taxable
sales of sporting goods, and according to the specific amounts
provided in the General Appropriations Act in accordance with
Subsection (c-1). The comptroller shall determine the amount to be
deposited to the fund under Subsection (c-2) according to available
statistical data indicating the estimated or actual total receipts
in this state from taxes imposed on sales at retail of
fireworks. The comptroller shall determine the amount to be
deposited to the account under Subsection (c-3) according to
available statistical data indicating the estimated or actual total
receipts in this state from taxable sales of horse feed, horse
supplements, horse tack, horse bedding and grooming supplies, and
other taxable expenditures directly related to horse ownership,
riding, or boarding. The comptroller shall determine the amount to
be deposited to the credit of the account under Subsection (c-4)
according to available statistical data indicating the estimated or
actual total receipts in this state from the sale, storage, use, or
other consumption of taxable items inside the boundaries of United
States military bases. If satisfactory data are not available, the
comptroller may require taxpayers who make taxable sales or uses of
those lubricants, of sporting goods, of fireworks, [or] of horse
feed, horse supplements, horse tack, horse bedding and grooming
supplies, or other taxable expenditures directly related to horse
ownership, riding, or boarding, or of taxable items inside the
boundaries of United States military bases to report to the
comptroller as necessary to make the allocation required by
Subsection (b), (c), (c-2), [or] (c-3), or (c-4).
SECTION 4. Section 140.011, Local Government Code, as
amended by this Act, applies to the eligibility of a local
government to apply for, and the calculation of, a disabled veteran
assistance payment beginning with the fiscal year of the local
government that ends in the 2023 tax year.
SECTION 5. This Act takes effect September 1, 2023.