| 4 | 5 | | |
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| 5 | 6 | | |
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| 6 | 7 | | A BILL TO BE ENTITLED |
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| 7 | 8 | | AN ACT |
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| 8 | 9 | | relating to the provision of state aid to certain local governments |
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| 9 | 10 | | disproportionately affected by the granting of ad valorem tax |
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| 10 | 11 | | relief to disabled veterans. |
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| 11 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 13 | | SECTION 1. Section 140.011(a)(2), Local Government Code, is |
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| 13 | 14 | | amended to read as follows: |
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| 14 | 15 | | (2) "Local government" means: |
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| 15 | 16 | | (A) a municipality [adjacent to a United States |
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| 16 | 17 | | military installation]; and |
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| 17 | 18 | | (B) a county in which a United States military |
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| 18 | 19 | | installation is wholly or partly located. |
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| 19 | 20 | | SECTION 2. Section 140.011(b), Local Government Code, is |
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| 20 | 21 | | amended to read as follows: |
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| 21 | 22 | | (b) To serve the state purpose of ensuring that the cost of |
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| 22 | 23 | | providing ad valorem tax relief to disabled veterans is shared |
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| 23 | 24 | | equitably among the residents of this state, a local government is |
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| 24 | 25 | | entitled to a disabled veteran assistance payment from the state |
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| 25 | 26 | | for each fiscal year that the local government is a qualified local |
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| 26 | 27 | | government. A local government is a qualified local government for |
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| 27 | 28 | | a fiscal year if the amount of lost ad valorem tax revenue |
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| 28 | 29 | | calculated under Subsection (c) for that fiscal year is equal to or |
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| 29 | 30 | | greater than: |
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| 30 | 31 | | (1) two percent of the local government's general fund |
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| 31 | 32 | | revenue for that fiscal year if the local government is: |
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| 32 | 33 | | (A) a municipality adjacent to a United States |
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| 33 | 34 | | military installation; or |
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| 34 | 35 | | (B) a county described by Subsection (a)(2)(B); |
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| 35 | 36 | | and |
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| 36 | 37 | | (2) 10 percent of the local government's general fund |
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| 37 | 38 | | revenue for that fiscal year if the local government is a |
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| 38 | 39 | | municipality other than a municipality described by Subdivision |
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| 39 | 40 | | (1)(A). |
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| 40 | 41 | | SECTION 3. Section 140.011(a)(2), Local Government Code, as |
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| 41 | 42 | | amended by this Act, applies only to the eligibility of a local |
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| 42 | 43 | | government to apply for a disabled veteran assistance payment |
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| 43 | 44 | | beginning with the fiscal year of the local government that ends in |
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| 44 | 45 | | the 2025 tax year. |
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| 45 | 46 | | SECTION 4. This Act takes effect September 1, 2025. |
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