Texas § LG.140.011 - LOCAL GOVERNMENTS DISPROPORTIONATELY AFFECTED BY PROPERTY TAX RELIEF FOR DISABLED

§ LG.140.011. LOCAL GOVERNMENTS DISPROPORTIONATELY AFFECTED BY PROPERTY TAX RELIEF FOR DISABLED

LOCAL GOVERNMENTS DISPROPORTIONATELY AFFECTED BY PROPERTY TAX RELIEF FOR DISABLED VETERANS. (a) In this section: (1) "General fund revenue" means revenue generated by a local government from the following sources during a fiscal year and deposited in the dedicated general operating fund of the local government during that fiscal year: (A) ad valorem taxes; (B) sales and use taxes; (C) franchise taxes, fees, or assessments charged for use of the local government's right-of-way; (D) building and development fees, including permit and inspection fees; (E) court fines and fees; (F) other fees, assessments, and charges; and (G) interest earned by the local government. (2) "Local government" means: (A) a municipality; and (B) a county. (3) "Qualified local government" means a local government entitled to a disabled veteran assistance payment under this section. (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 greater than: (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 military installation; or (B) a county in which a United States military installation is wholly or partly located; and (2) 10 percent of the local government's general fund revenue for that fiscal year if the local government is: (A) a municipality in a county: (i) described by Subdivision (1)(B) that has a population of: (a) more than 370,000 but not more than 380,000; or (b) more than 83,000 but not more than 84,000; or (ii) described by Paragraph (B); or (B) a county with a population of less than 25,000 that is adjacent to two counties that contain the same United States Army installation, neither of which has a population greater than 400,000. (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 , Tax Code, for that tax year. (d) A 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 April 1 of the first year following the end of a fiscal year for which a qualified local government is entitled to a disabled veteran assistance payment, a qualified local government may submit an application to the comptroller to receive a 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 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 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. (h) The comptroller shall transfer funds to a newly created account in the state treasury for the purpose of reimbursement of local governments under this section. (i) The comptroller shall adopt rules necessary to implement this section. Added by Acts 2015, 84th Leg., R.S., Ch. 448 (H.B. 7 ), Sec. 25, eff. September 1, 2015. Amended by: Acts 2025, 89th Leg., R.S., Ch. 425 (H.B. 2894 ), Sec. 1, eff. September 1, 2025. Acts 2025, 89th Leg., R.S., Ch. 425 (H.B. 2894 ), Sec. 2, eff. September 1, 2025.