House Bill 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 the calculation of lost ad valorem tax revenue and the process for local governments to apply for these payments.

Key amendments include the introduction of the term "military exemption" in place of "disabled veteran" assistance payment, and the expansion of eligibility criteria to encompass surviving spouses of armed services members killed or fatally injured in the line of duty. The bill establishes that local governments can apply for assistance payments starting from the fiscal year ending in the 2025 tax year, with applications due by May 1 of the following year. The act is set to take effect on September 1, 2025.

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