Relating to the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax relief to disabled veterans and surviving spouses of certain armed services members.

SB 899 creates a state aid program to compensate Texas local governments that lose significant revenue due to property tax exemptions for disabled veterans and surviving spouses of military members killed in action. It defines a "qualified local government" as one losing at least 2% of its general fund revenue from these tax exemptions. The state will pay the difference between the lost tax revenue (calculated using the local tax rate and exempt property value) and 1% of the government’s general fund revenue, provided the local government applies by April 1 each year with required documentation. This policy directly affects local governments with high numbers of qualifying veterans or military families.