The bill, S.B. No. 899, aims to provide state aid to local governments that are disproportionately affected by the ad valorem tax relief granted to disabled veterans and the surviving spouses of certain armed services members. It amends Section 140.011 of the Local Government Code to include provisions for these surviving spouses, thereby broadening the scope of qualified local governments eligible for assistance payments. The bill specifies that a local government qualifies for aid if the lost ad valorem tax revenue due to these exemptions equals or exceeds two percent of its general fund revenue for the fiscal year.

Key amendments include the introduction of the term "military exemption" in place of "disabled veteran" assistance payment, and the inclusion of exemptions under Sections 11.131 and 11.133 of the Tax Code. The bill also establishes a timeline for local governments to apply for these payments, with applications due by May 1 of the year following the fiscal year in question. The comptroller is tasked with reviewing applications and disbursing payments within 30 days of application approval. The provisions of this act will take effect on September 1, 2025, and will apply to fiscal years ending in the 2025 tax year and beyond.

Statutes affected:
Introduced: Local Government Code 140.011 (Local Government Code 140)