Texas HB2894 amends state aid provisions for local governments affected by tax relief for disabled veterans.

Texas HB2894 modifies the Local Government Code to redefine "local government" for eligibility in disabled veteran assistance payments. It specifies that a local government qualifies if it is a municipality adjacent to a U.S. military installation or a county with a U.S. military installation. The bill also sets thresholds for lost ad valorem tax revenue, requiring it to be at least 2% of general fund revenue for municipalities adjacent to a military installation or 10% for other municipalities. This Act applies to fiscal years ending after the 2025 tax year and takes effect September 1, 2025.

Texas HB2894 amends state aid provisions for local governments affected by tax relief for disabled veterans.

Texas HB2894 modifies the Local Government Code to redefine "local government" for eligibility in disabled veteran assistance payments. It specifies that a local government qualifies if it is a municipality adjacent to a U.S. military installation or a county with a U.S. military installation. The bill also sets thresholds for lost ad valorem tax revenue, requiring it to be at least 2% of general fund revenue for municipalities adjacent to a military installation or 10% for other municipalities. This Act applies to fiscal years ending after the 2025 tax year and takes effect September 1, 2025.