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 provisions for these surviving spouses, thereby broadening the scope of qualified local governments eligible for assistance payments. The definition of "qualified local government" is updated to reflect this inclusion, and the term "military exemption" replaces "disabled veteran" in various sections to ensure consistency throughout the legislation.

Additionally, the bill outlines the process for local governments to apply for military exemption assistance payments, which are calculated based on the lost ad valorem tax revenue due to the exemptions. The application deadline is set for May 1 of the year following the fiscal year in which the local government qualifies for the payment. 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)