H.B. No. 2894 aims to provide state aid to local governments that are disproportionately affected by the ad valorem tax relief granted to disabled veterans. The bill amends the definition of "local government" in the Local Government Code to include municipalities adjacent to U.S. military installations and counties where such installations are located. It establishes criteria for local governments to qualify for disabled veteran assistance payments based on the amount of lost ad valorem tax revenue, which must meet specific thresholds related to their general fund revenue.

The bill specifies that a local government is eligible for assistance if the lost revenue is at least 2% of its general fund revenue for municipalities and counties directly adjacent to military installations, or 10% for certain municipalities and counties with specific population criteria. The changes will take effect starting with the fiscal year ending in the 2025 tax year, and the act is set to become effective on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 140.011 (Local Government Code 140)
House Committee Report: Local Government Code 140.011 (Local Government Code 140)
Engrossed: Local Government Code 140.011 (Local Government Code 140)
Senate Committee Report: Local Government Code 140.011 (Local Government Code 140)
Enrolled: Local Government Code 140.011 (Local Government Code 140)