Bill > HB5217

This bill expands an existing state aid program for local governments that experience significant property tax revenue losses due to tax exemptions for disabled veterans. The key changes include broadening the program to also cover local governments affected by tax exemptions for surviving spouses of armed services members killed or fatally injured in the line of duty. The bill modifies several aspects of the existing law, such as renaming the "disabled veteran assistance payment" to "military exemption assistance payment" and updating the definition of a "qualified local government." Under the revised law, local governments can receive state aid if their lost tax revenue from these exemptions equals or exceeds two percent of their general fund revenue. Local governments must apply to the state comptroller by May 1st following the fiscal year in which they experienced the tax revenue loss, and the payment amount will be calculated by subtracting one percent of the government's general fund revenue from the total lost tax revenue. The changes will take effect for fiscal years ending in the 2025 tax year, with the bill becoming effective on September 1, 2025. This legislation aims to ensure that the cost of providing property tax relief to military veterans and their families is more equitably shared across the state.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5217