Texas 2023 - 88th Regular

Texas Senate Bill SB748 Compare Versions

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Version 2 (New)

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1	1	88R7538 CJC-F
2	2	By: Flores S.B. No. 748
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the provision of state aid to certain local governments
8	8	to offset the cost of the exemption from ad valorem taxation of the
9	9	residence homestead of a 100 percent or totally disabled veteran.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Sections 140.011(a)(1) and (2), Local Government
12	12	Code, are amended to read as follows:
13	13	(1) "Ad valorem tax [General fund] revenue" means the
14	14	dollar amount of ad valorem taxes imposed [revenue generated] by a
15	15	local government for the tax year in which the local government's
16	16	[from the following sources during a] fiscal year begins [and
17	17	deposited in the dedicated general operating fund of the local
18	18	government during that fiscal year:
19	19	[(A) ad valorem taxes;
20	20	[(B) sales and use taxes;
21	21	[(C) franchise taxes, fees, or assessments
22	22	charged for use of the local government's right-of-way;
23	23	[(D) building and development fees, including
24	24	permit and inspection fees;
25	25	[(E) court fines and fees;
26	26	[(F) other fees, assessments, and charges; and
27	27	[(G) interest earned by the local government].
28	28	(2) "Local government" means a municipality or county
29	29	[:
30	30	[(A) a municipality adjacent to a United States
31	31	military installation; and
32	32	[(B) a county in which a United States military
33	33	installation is wholly or partly located].
34	34	SECTION 2. Section 140.011, Local Government Code, is
35	35	amended by amending Subsections (b), (d), (h), and (i) and adding
36	36	Subsection (j) to read as follows:
37	37	(b) To serve the state purpose of ensuring that the cost of
38	38	providing ad valorem tax relief to disabled veterans is shared
39	39	equitably among the residents of this state, a local government is
40	40	entitled to a disabled veteran assistance payment from the state
41	41	for each fiscal year that the local government is a qualified local
42	42	government. A local government is a qualified local government for
43	43	a fiscal year if the amount of lost ad valorem tax revenue
44	44	calculated under Subsection (c) for that fiscal year is [equal to
45	45	or] greater than one [two] percent of the local government's ad
46	46	valorem tax [general fund] revenue for that fiscal year.
47	47	(d) Subject to Subsection (i), a [A] disabled veteran
48	48	assistance payment made to a qualified local government for a
49	49	fiscal year is calculated by subtracting from the local
50	50	government's lost ad valorem tax revenue calculated under
51	51	Subsection (c) for that fiscal year an amount equal to one percent
52	52	of the local government's ad valorem tax [general fund] revenue for
53	53	that fiscal year.
54	54	(h) The disabled veterans local government assistance
55	55	account is an account in the general revenue fund administered by
56	56	the [The] comptroller. The account consists of money deposited to
57	57	the credit of the account under Section 151.801, Tax Code, and other
58	58	money deposited to the credit of the account at the direction of the
59	59	legislature. Money in the account may be used only [shall transfer
60	60	funds to a newly created account in the state treasury] for the
61	61	purpose of making payments to which qualified [reimbursement of]
62	62	local governments are entitled under this section.
63	63	(i) If the comptroller determines that the balance of the
64	64	disabled veterans local government assistance account in a state
65	65	fiscal year is not sufficient to pay the full amount of each
66	66	disabled veterans assistance payment to qualified local
67	67	governments in that year, the comptroller shall proportionately
68	68	reduce the amount of each payment made to the qualified local
69	69	governments that year as necessary to prevent the account from
70	70	becoming insolvent.
71	71	(j) The comptroller shall adopt rules necessary to
72	72	implement this section.
73	73	SECTION 3. Section 151.801, Tax Code, is amended by
74	74	amending Subsections (a) and (d) and adding Subsection (c-4) to
75	75	read as follows:
76	76	(a) Except for [the] amounts otherwise allocated under this
77	77	section [Subsections (b), (c), (c-2), (c-3), and (f)], all proceeds
78	78	from the collection of the taxes imposed by this chapter shall be
79	79	deposited to the credit of the general revenue fund.
80	80	(c-4) Except for the amounts allocated under Subsections
81	81	(b) and (c), the amount of the proceeds from the collection of the
82	82	taxes imposed by this chapter on the sale, storage, use, or other
83	83	consumption of taxable items inside the boundaries of a United
84	84	States military base shall be deposited to the credit of the
85	85	disabled veterans local government assistance account under
86	86	Section 140.011, Local Government Code. Subsections (c-2), (c-3),
87	87	and (f) do not apply to tax proceeds to which this subsection
88	88	applies.
89	89	(d) The comptroller shall determine the amount to be
90	90	deposited to the state highway fund under Subsection (b) according
91	91	to available statistical data indicating the estimated average or
92	92	actual consumption or sales of lubricants used to propel motor
93	93	vehicles over the public roadways. The comptroller shall
94	94	determine the amounts to be deposited to the accounts under
95	95	Subsection (c) according to available statistical data indicating
96	96	the estimated or actual total receipts in this state from taxable
97	97	sales of sporting goods, and according to the specific amounts
98	98	provided in the General Appropriations Act in accordance with
99	99	Subsection (c-1). The comptroller shall determine the amount to be
100	100	deposited to the fund under Subsection (c-2) according to available
101	101	statistical data indicating the estimated or actual total receipts
102	102	in this state from taxes imposed on sales at retail of
103	103	fireworks. The comptroller shall determine the amount to be
104	104	deposited to the account under Subsection (c-3) according to
105	105	available statistical data indicating the estimated or actual total
106	106	receipts in this state from taxable sales of horse feed, horse
107	107	supplements, horse tack, horse bedding and grooming supplies, and
108	108	other taxable expenditures directly related to horse ownership,
109	109	riding, or boarding. The comptroller shall determine the amount to
110	110	be deposited to the credit of the account under Subsection (c-4)
111	111	according to available statistical data indicating the estimated or
112	112	actual total receipts in this state from the sale, storage, use, or
113	113	other consumption of taxable items inside the boundaries of United
114	114	States military bases. If satisfactory data are not available, the
115	115	comptroller may require taxpayers who make taxable sales or uses of
116	116	those lubricants, of sporting goods, of fireworks, [or] of horse
117	117	feed, horse supplements, horse tack, horse bedding and grooming
118	118	supplies, or other taxable expenditures directly related to horse
119	119	ownership, riding, or boarding, or of taxable items inside the
120	120	boundaries of United States military bases to report to the
121	121	comptroller as necessary to make the allocation required by
122	122	Subsection (b), (c), (c-2), [or] (c-3), or (c-4).
123	123	SECTION 4. Section 140.011, Local Government Code, as
124	124	amended by this Act, applies to the eligibility of a local
125	125	government to apply for, and the calculation of, a disabled veteran
126	126	assistance payment beginning with the fiscal year of the local
127	127	government that ends in the 2023 tax year.
128	128	SECTION 5. This Act takes effect September 1, 2023.