County Judge Randy Hoyer and Precinct 1 County Commissioner Bobby Carroll spoke in support of House Bill 1613 on Monday. The pair traveled to Austin to testify at a hearing with the House Ways and Means Committee on the benefits HB 1613.
“It is without a doubt the single most important legislation facing Lampasas County,” Hoyer told committee members.
In 2009, the Texas Legislature passed a bill that exempted 100% disabled veterans from paying property taxes on their homestead. Lampasas County is the third most-affected county in the state in terms of lost revenue as a result of this exemption. The measure has cost the county more than $5.8 million in tax revenue since it was adopted.
Cities and counties that border one of Texas’ 15 military installations are eligible for reimbursement from the state for their lost revenue. Lampasas County is not eligible because it does not directly border Fort Hood. The county line is less than two miles from Fort Hood boundaries.
“I want to repeat, 1.7 miles keeps us from receiving any state assistance reimbursement,” Hoyer testified on Monday. “Disproportionate is disproportionate. Geographic locations should not be a qualifying condition for state assistance.
“HB 1613 is a true and sustainable fix to this growing issue,” the county judge said.
The new bill would authorize reimbursement to counties and municipalities whose lost property tax revenue for a fiscal year is greater than 1% of the local government’s ad valorem tax revenue that year. This legislative session, the bill has gathered significant bipartisan support, as it has more than 90 Republican and Democrat co-sponsors.
HB 1613 was written by State Rep. Hugh Shine (R-Temple), who serves two of the top affected areas: Coryell County and Bell County. Shine urged his fellow committee members to consider the importance of HB 1613.
“Over time, this mandate has created significant losses to city and county tax revenues due to the substantial increase in disabled veterans tax exemptions,” Shine said in opening remarks Monday to House Ways and Means Committee members.
Shine said Texas has more than 200,000 veterans who are 100% disabled, and the appraised value of their exempt property sits at $42 billion.
The city of Nolanville just outside of Fort Hood loses 25% of its property tax value because of the exemption. Cibolo, a suburb of San Antonio, is losing 17% of its property tax revenues because of the exemption. These two entities, like Lampasas County, also are not eligible for state reimbursement.
For those cities and counties that are losing significant property tax revenues as a result of their disabled veteran population, the services their local governments can provide are limited.
“My heart goes out to him [Judge Hoyer] because he is trying to operate a government on 90% of his revenue,” Coryell County Judge Roger Miller said during Monday’s testimony at the Capitol. “That is the challenge we face.”
HB 1613 has a companion bill in the Texas Senate offered by Republican Sen. Pete Flores, whose district includes Lampasas County.
Action on HB 1613 was left pending by the Ways and Means Committee.
“We are proud of every one of our 100% disabled veterans that come to Lampasas County,” Carroll said in his remarks at the hearing. “They are great people, great neighbors and give no problem. But I will say, it does put a burden on the other 90% to pay the bill.
“We try to keep our tax rates down as best we can, but it is hard to do,” the county commissioner said.
