HB 2894
AN ACT relating to the provision of state aid to certain local governments
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Provides state aid to local governments that experience significant revenue loss due to ad valorem tax exemptions for disabled veterans. Qualifying local governments, including municipalities adjacent to military installations and counties with military bases, can receive state payments if their lost tax revenue reaches either 2% or 10% of their general fund revenue, depending on their specific classification. The legislation aims to ensure equitable sharing of veteran tax relief costs across Texas, with the aid program taking effect in fiscal years beginning after September 1, 2025.
Subject Areas
Bill Text
relating to the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax 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 [adjacent to a United States (B) a county in which a United States military installation is wholly or partly located. SECTION 2. Section 140.011(b), Local Government Code, is (b) To serve the state purpose of ensuring that the cost of providing ad valorem tax relief to disabled veterans is shared equitably among the residents of this state, a local government is entitled to a disabled veteran assistance payment from the state for each fiscal year that the local government is a qualified local government. A local government is a qualified local government for a fiscal year if the amount of lost ad valorem tax revenue calculated under Subsection (c) for that fiscal year is equal to or (1) two percent of the local government's general fund revenue for that fiscal year if the local government is: (A) a municipality adjacent to a United States (B) a county described by Subsection (a)(2)(B); (2) 10 percent of the local government's general fund revenue for that fiscal year if the local government is a municipality other than a municipality described by Subdivision SECTION 3. Section 140.011(a)(2), Local Government Code, as amended by this Act, applies only 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. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to the provision of state aid to certain local governments
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