H.B. No. 5217 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. The bill amends Section 140.011 of the Local Government Code to include surviving spouses in the definition of qualified local governments eligible for military exemption assistance payments. It also clarifies that these payments are intended to equitably share the costs of tax relief among residents, and establishes criteria for local governments to qualify based on their lost ad valorem tax revenue.

Key amendments include the introduction of the term "military exemption" in place of "disabled veteran" in various sections, and the expansion of the definition of qualified local governments to include those affected by exemptions under Sections 11.131 or 11.133 of the Tax Code. The bill sets a deadline for local governments to apply for these payments and outlines the calculation process for determining the amount of assistance. The provisions of this act will take effect on September 1, 2025, and will apply to fiscal years ending in the 2025 tax year.

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