Texas House Bill HB1309

Texas 2025 - 89th Regular

• Filed: 11/13/24

Caption

Relating to the applicability of the law governing the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax relief to disabled veterans and to the effect of the receipt of such aid on the maintenance and operations ad valorem tax rate of a local government.

Impact

The bill's modifications would create restrictions on local governments' ability to increase their maintenance and operations ad valorem tax rates for the first tax year following the receipt of state aid payments to disabled veterans. This provision intends to support fiscal responsibility while ensuring that local tax rates do not escalate unjustly following assistance, enabling communities to maintain a level of predictability in tax obligations. The intended effect is to shield vulnerable local governments from sudden fluctuations in tax rates that could arise from reliance on state monetary support.

Summary

House Bill 1309 addresses the applicability of laws related to state aid provided to local governments significantly impacted by ad valorem tax relief granted to disabled veterans. The bill aims to amend the Local Government Code, particularly in areas concerning the maintenance and operations ad valorem tax rates of qualified local governments. The measure stipulates specific provisions for how these local governments can adjust their tax rates in the context of receiving state assistance, thus providing a structured framework aimed at stabilizing local tax revenue during fiscal challenges associated with the veteran aid program.

Contention

There may be potential contention surrounding the bill's provisions regarding the limitations imposed on local governance. Proponents argue that the bill is necessary for maintaining financial stability within local governments, ensuring they properly account for assistance without excessive tax rises. However, opponents may voice concerns regarding this centralization of tax control and the limited flexibility for local governments to independently manage their fiscal landscapes, particularly in areas with varying needs and economic conditions linked to military installations.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 140. Miscellaneous Financial Provisions Affecting Municipalities, Counties, And Other Local Governments
  • Section: 011
  • Section: New Section