HB5217 - Relating to the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax relief to disabled veterans and surviving spouses of certain armed services members.

  89R1873 JBD-D     By: Perez of El Paso H.B. No. 5217       A BILL TO BE ENTITLED   AN ACT   relating to the provision of state aid to certain local governments   disproportionately affected by the granting of ad valorem tax   relief to disabled veterans and surviving spouses of certain armed   services members.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Section 140.011, Local Government   Code, is amended to read as follows:          Sec. 140.011.  LOCAL GOVERNMENTS DISPROPORTIONATELY   AFFECTED BY PROPERTY TAX RELIEF FOR DISABLED VETERANS AND SURVIVING   SPOUSES OF CERTAIN ARMED SERVICES MEMBERS .          SECTION 2.  Section 140.011(a)(3), Local Government Code, is   amended to read as follows:                (3)  "Qualified local government" means a local   government entitled to a military exemption [ disabled veteran ]   assistance payment under this section.          SECTION 3.  Sections 140.011(b), (c), (d), (e), (f), and   (g), Local Government Code, are amended to read as follows:          (b)  To serve the state purpose of ensuring that the cost of   providing ad valorem tax relief to disabled veterans and surviving   spouses of members of the armed services killed or fatally injured   in the line of duty is shared equitably among the residents of this   state, a local government is entitled to a military exemption   [ 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   greater than two percent of the local government's general fund   revenue for that fiscal year.          (c)  For the purposes of this section, the amount of a local   government's lost ad valorem tax revenue for a fiscal year is   calculated by multiplying the ad valorem tax rate adopted by the   local government under Section 26.05, Tax Code, for the tax year in   which the fiscal year begins by the total appraised value of all   property located in the local government that is granted an   exemption from taxation under Section 11.131 or 11.133 , Tax Code,   for that tax year.          (d)  A military exemption [ disabled veteran ] assistance   payment made to a qualified local government for a fiscal year is   calculated by subtracting from the local government's lost ad   valorem tax revenue calculated under Subsection (c) for that fiscal   year an amount equal to one percent of the local government's   general fund revenue for that fiscal year.          (e)  Not later than May [ April ] 1 of the first year following   the end of a fiscal year for which a qualified local government is   entitled to a military exemption [ disabled veteran ] assistance   payment, a qualified local government may submit an application to   the comptroller to receive a military exemption [ disabled veteran ]   assistance payment for that fiscal year. The application must be   made on a form prescribed by the comptroller. The comptroller may   require the qualified local government to submit an independent   audit otherwise required by law to be prepared for the local   government for the fiscal year for which a qualified local   government is entitled to the payment.          (f)  A qualified local government that does not submit an   application to the comptroller by the date prescribed by Subsection   (e) is not entitled to a military exemption [ disabled veteran ]   assistance payment for the fiscal year for which that deadline   applies.          (g)  The comptroller shall review each application by a local   government to determine whether the local government is entitled to   a military exemption [ disabled veteran ] assistance payment. If the   comptroller determines that the local government is entitled to the   payment, the comptroller shall remit the payment from available   funds to the qualified local government not later than the 30th day   after the date the application for the payment is made.          SECTION 4.  Section 140.011, Local Government Code, as   amended by this Act, applies to the deadline for a local government   to apply for, and the calculation of the amount of, a military   exemption assistance payment beginning with the fiscal year of the   local government that ends in the 2025 tax year.          SECTION 5.  This Act takes effect September 1, 2025.