By LYNETTE SOWELL
Cove Leader-Press
The City of Copperas Cove will be receiving fewer dollars than anticipated to help bridge the loss of property tax revenue due to the 100 percent disabled veterans’ property tax exemption.
This year, the exemption loss for Copperas Cove was about $3 million, and for next year that number is anticipated to reach $3.4 million. Past legislation has given relief payments to cities affected disproportionately due to the exemption.
City Manager Ryan Haverlah updated the city council on Tuesday evening and shared about the bills passed by the Texas legislature, bills that are on their way to Governor Abbott’s desk for signature.
The legislative session concluded on Monday, and Haverlah said that SB1, the state budget was debated because the Senate and House versions differed on a relief payment for disproportionately impacted communities from the 100 percent disabled veterans’ property tax exemption.
Copperas Cove is one of those area communities, along with Killeen.
“The submission from the Comptroller was that the budget should increase from $19 million for the biennium to $69 million for the biennium,” Haverlah. “After both the Senate and the House approved their version of the budget, a conference committee was brought together, and the Senate version included only $19 million for that relief payment. The House version included $69 million.
“After the conference committee concluded over this weekend, the budget that was eventually approved by the Senate and the House in both committees did not include an increase in that budget, so it remained at $19 million.
“In addition to that bill, House Bill 2894 has also passed the House and the Senate and has been sent to the governor for signature. House Bill 2894 expands the eligibility for that relief payment to additional entities in our region.”
Haverlah explained that what the city received this year in a relief payment was $418,000 based on a loss of $3 million due to the property tax exemption.
“Next year, our loss is going to be $3.4 million and with the expanded eligibility to other communities and entities, our relief payment is potentially going to decrease to anywhere between $200,000 to $250,000, so that has an impact on our budget preparation.”
He said that the council will be presented with a proposed budget for fiscal year 2025-2026 at the June 17 meeting and will also be presented with a recommended plan to adjust for the revenue that the city will not receive after all.
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