| 1 | 1 | | 89R1873 JBD-D |
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| 2 | 2 | | By: Blanco S.B. No. 899 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the provision of state aid to certain local governments |
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| 10 | 10 | | disproportionately affected by the granting of ad valorem tax |
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| 11 | 11 | | relief to disabled veterans and surviving spouses of certain armed |
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| 12 | 12 | | services members. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. The heading to Section 140.011, Local Government |
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| 15 | 15 | | Code, is amended to read as follows: |
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| 16 | 16 | | Sec. 140.011. LOCAL GOVERNMENTS DISPROPORTIONATELY |
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| 17 | 17 | | AFFECTED BY PROPERTY TAX RELIEF FOR DISABLED VETERANS AND SURVIVING |
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| 18 | 18 | | SPOUSES OF CERTAIN ARMED SERVICES MEMBERS. |
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| 19 | 19 | | SECTION 2. Section 140.011(a)(3), Local Government Code, is |
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| 20 | 20 | | amended to read as follows: |
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| 21 | 21 | | (3) "Qualified local government" means a local |
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| 22 | 22 | | government entitled to a military exemption [disabled veteran] |
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| 23 | 23 | | assistance payment under this section. |
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| 24 | 24 | | SECTION 3. Sections 140.011(b), (c), (d), (e), (f), and |
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| 25 | 25 | | (g), Local Government Code, are amended to read as follows: |
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| 26 | 26 | | (b) To serve the state purpose of ensuring that the cost of |
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| 27 | 27 | | providing ad valorem tax relief to disabled veterans and surviving |
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| 28 | 28 | | spouses of members of the armed services killed or fatally injured |
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| 29 | 29 | | in the line of duty is shared equitably among the residents of this |
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| 30 | 30 | | state, a local government is entitled to a military exemption |
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| 31 | 31 | | [disabled veteran] assistance payment from the state for each |
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| 32 | 32 | | fiscal year that the local government is a qualified local |
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| 33 | 33 | | government. A local government is a qualified local government for |
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| 34 | 34 | | a fiscal year if the amount of lost ad valorem tax revenue |
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| 35 | 35 | | calculated under Subsection (c) for that fiscal year is equal to or |
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| 36 | 36 | | greater than two percent of the local government's general fund |
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| 37 | 37 | | revenue for that fiscal year. |
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| 38 | 38 | | (c) For the purposes of this section, the amount of a local |
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| 39 | 39 | | government's lost ad valorem tax revenue for a fiscal year is |
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| 40 | 40 | | calculated by multiplying the ad valorem tax rate adopted by the |
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| 41 | 41 | | local government under Section 26.05, Tax Code, for the tax year in |
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| 42 | 42 | | which the fiscal year begins by the total appraised value of all |
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| 43 | 43 | | property located in the local government that is granted an |
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| 44 | 44 | | exemption from taxation under Section 11.131 or 11.133, Tax Code, |
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| 45 | 45 | | for that tax year. |
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| 46 | 46 | | (d) A military exemption [disabled veteran] assistance |
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| 47 | 47 | | payment made to a qualified local government for a fiscal year is |
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| 48 | 48 | | calculated by subtracting from the local government's lost ad |
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| 49 | 49 | | valorem tax revenue calculated under Subsection (c) for that fiscal |
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| 50 | 50 | | year an amount equal to one percent of the local government's |
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| 51 | 51 | | general fund revenue for that fiscal year. |
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| 52 | 52 | | (e) Not later than May [April] 1 of the first year following |
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| 53 | 53 | | the end of a fiscal year for which a qualified local government is |
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| 54 | 54 | | entitled to a military exemption [disabled veteran] assistance |
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| 55 | 55 | | payment, a qualified local government may submit an application to |
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| 56 | 56 | | the comptroller to receive a military exemption [disabled veteran] |
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| 57 | 57 | | assistance payment for that fiscal year. The application must be |
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| 58 | 58 | | made on a form prescribed by the comptroller. The comptroller may |
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| 59 | 59 | | require the qualified local government to submit an independent |
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| 60 | 60 | | audit otherwise required by law to be prepared for the local |
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| 61 | 61 | | government for the fiscal year for which a qualified local |
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| 62 | 62 | | government is entitled to the payment. |
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| 63 | 63 | | (f) A qualified local government that does not submit an |
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| 64 | 64 | | application to the comptroller by the date prescribed by Subsection |
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| 65 | 65 | | (e) is not entitled to a military exemption [disabled veteran] |
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| 66 | 66 | | assistance payment for the fiscal year for which that deadline |
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| 67 | 67 | | applies. |
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| 68 | 68 | | (g) The comptroller shall review each application by a local |
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| 69 | 69 | | government to determine whether the local government is entitled to |
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| 70 | 70 | | a military exemption [disabled veteran] assistance payment. If the |
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| 71 | 71 | | comptroller determines that the local government is entitled to the |
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| 72 | 72 | | payment, the comptroller shall remit the payment from available |
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| 73 | 73 | | funds to the qualified local government not later than the 30th day |
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| 74 | 74 | | after the date the application for the payment is made. |
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| 75 | 75 | | SECTION 4. Section 140.011, Local Government Code, as |
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| 76 | 76 | | amended by this Act, applies to the deadline for a local government |
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| 77 | 77 | | to apply for, and the calculation of the amount of, a military |
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| 78 | 78 | | exemption assistance payment beginning with the fiscal year of the |
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| 79 | 79 | | local government that ends in the 2025 tax year. |
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| 80 | 80 | | SECTION 5. This Act takes effect September 1, 2025. |
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