HB1309 - 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.

      By: Hickland H.B. No. 1309       A BILL TO BE ENTITLED   AN ACT   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   amended to read as follows:                (2)  "Local government" means:                      (A)  a municipality located in a county described   by Paragraph (B) [ adjacent to a United States military   installation ]; and                      (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   the preceding tax year.          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   the 2025 tax year.          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.