The Comptroller of Public Accounts proposes amending Title 34, Part 1, Chapter 9 by adding Subchapter M, "Local Government Relief for Disabled Veterans Exemption," §§9.4321, 9.4323, 9.4325, and 9.4327. Subchapter M implements provisions of House Bill 7, Section 25, 84th Legislature, 2015 (codified in Local Government Code, §140.011) which provides for payments to qualified local governments to offset a portion of property tax revenue lost in providing property tax exemptions to disabled veterans under Tax Code, §11.131. Local governments that qualify for payments under the program are those municipalities adjacent to a United States military installation or counties in which a United States military installation is located, and whose lost property tax revenue (due to disabled veterans property tax exemptions being granted) for a fiscal year is equal to or greater than two percent of the jurisdiction's general fund revenue for that fiscal year. Payments to qualified local governments for a fiscal year will be in an amount calculated by subtracting one percent of the local government's general fund revenue from the local government's lost property tax revenue for that fiscal year. The new rules prescribe procedures to be used in administering Subchapter M, §9.4321, Definitions; §9.4323, Application; §9.4325, Review by Comptroller; and §9.4327, Payment to Qualified Local Government.

Tom Currah, Chief Revenue Estimator, has determined that for the first five-year period the rules will be in effect, there will be no significant revenue impact on the state or units of local government.

Mr. Currah also has determined that for each year of the first five years the rule are in effect, the public benefit anticipated as a result of enforcing the rules will be by improving the administration of local property valuation and taxation. The proposed amendments would have no fiscal impact on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rules.

Comments on the new proposed rules may be submitted to Mike Esparza, Director, Property Tax Assistance Division, P.O. Box 13528 Austin, Texas 78711 or at Mike.Esparza@cpa.texas.gov.

This subchapter is proposed pursuant to Local Government Code, §140.011(i), which requires the comptroller to adopt rules to implement Local Government Code, §140.011.

This subchapter implements Local Government Code, §140.011.