Relating to the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax relief to disabled veterans.

Contracts

• Triple Net Leases (NNN): Review lease agreements in "Military Cities" (e.g., Killeen, San Antonio). Anticipate higher pass-through property tax costs due to potential state aid dilution.
• Economic Development Agreements (Chapter 380): Review incentives tied to ad valorem tax abatements. Ensure that a municipality's receipt of state aid does not trigger "clawback" provisions or alter "net benefit" calculations in your agreement.

Hiring/Training

• Government Affairs/Tax Teams: Staff must be trained to identify the specific population brackets and revenue loss thresholds in Section 2. They must actively monitor city council agendas in newly eligible jurisdictions to ensure the city applies for the funds.

Reporting & Record-Keeping

• Portfolio Mapping: You must map your real estate assets against two lists:
• 1. Risk Zones: Legacy military cities likely to lose funding share (budget for tax hikes).
• 2. Opportunity Zones: Non-military cities with high veteran populations (lobby for application to stabilize taxes).
• No Direct Filing: Businesses do not file reports with the state; the burden is on the local government.

Fees & Costs

• Property Tax Liability:
• Increase Risk: High probability of increased I&S or M&O tax rates in legacy military municipalities due to the "sum-certain" appropriation cap.
• Stabilization Opportunity: Potential tax rate stabilization in newly eligible municipalities (e.g., rural counties with high veteran populations).