Bill > HB1309

This bill modifies the Local Government Code to change how state aid is provided to local governments affected by disabled veterans' property tax relief. It redefines "local government" to include municipalities in counties with military installations, removing the previous requirement of being adjacent to a military installation. The bill introduces a new provision that restricts qualified local governments from increasing their maintenance and operations ad valorem tax rate (property tax rate for operational expenses) in the first tax year after receiving a disabled veteran assistance payment. Specifically, such a local government cannot adopt a maintenance and operations tax rate higher than the rate used in the preceding tax year. These changes will apply to local governments starting with the fiscal year ending in the 2025 tax year, with the tax rate restriction taking effect for tax years beginning on or after January 1, 2026. The bill is set to take effect on September 1, 2025, with the tax rate provision specifically taking effect on January 1, 2026.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1309