HB 1309

AN ACT relating to the applicability of the law governing the provision of

House Bill Hickland
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Fiscal Note

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What This Bill Does

Provides financial assistance to local governments near military installations that offer property tax relief to disabled veterans. If a qualifying local government receives a disabled veteran assistance payment, it cannot increase its maintenance and operations property tax rate for the following tax year. The bill aims to help municipalities offset potential revenue losses from veteran tax exemptions while preventing them from raising taxes to compensate for those losses.

Subject Areas

Bill Text

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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 140.011(a)(2), Local Government Code, is
(A)  a municipality located in a county described
by Paragraph (B) [adjacent to a United States military
(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 adding Subsection (j) to read as follows:
(j)  This subsection applies only to the adoption of the
maintenance and operations ad valorem tax rate of a qualified local
government under Section 26.05, Tax Code, for the first tax year
that begins after the end of a fiscal year for which the local
government receives a disabled veteran assistance payment.  A
qualified local government may not adopt a maintenance and
operations ad valorem tax rate for a tax year to which this
subsection applies that is greater than the maintenance and
operations ad valorem tax rate adopted by the local government for
SECTION 3.  Section 140.011(a)(2), Local Government Code, as
amended by this Act, applies to the eligibility of a local
government to apply for a disabled veteran assistance payment
beginning with the fiscal year of the local government that ends in
SECTION 4.  Section 140.011(j), Local Government Code, as
added by this Act, applies only to the adoption of a maintenance and
operations ad valorem tax rate by a qualified local government, as
that term is defined by Section 140.011(a)(3) of that code, for a
tax year that begins on or after January 1, 2026.
SECTION 5.  (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2025.
(b)  Section 140.011(j), Local Government Code, as added by
this Act, takes effect January 1, 2026.

Bill Sponsors

Legislators who authored or co-sponsored this bill.

Bill History

filed

Bill filed: AN ACT relating to the applicability of the law governing the provision of