Bell County Judge highlights tax burden shifts due to disabled veterans exemption

The Texas Senate Committee on Finance meeting on May 14, 2025, spotlighted the growing concern over property tax burdens on homeowners due to exemptions for disabled veterans. A key discussion point was the financial impact of these exemptions on local governments and taxpayers.

During the meeting, a representative from Bell County highlighted that as the number of disabled veterans utilizing property tax exemptions rises, the financial strain shifts to other homeowners. This shift is becoming increasingly evident, with local officials like the Bell County Judge openly discussing the repercussions. The judge noted that to compensate for the lost revenue from these exemptions, Bell County has implemented an additional tax rate of 4.02 cents, resulting in a 13% increase in county tax bills for residents.

The representative emphasized that while the county may appear to benefit from these exemptions, the reality is that taxpayers are ultimately footing the bill. The city of Harker Heights echoed these sentiments, revealing that despite a policy of maintaining a three-month financial reserve, it has accumulated over eight months of reserves, largely due to consistent tax levy increases.

The discussion also touched on legislative changes from previous sessions, specifically Senate Bill 1999, which altered how cities calculate foregone revenue. This change has led to discrepancies in reported losses, with the representative arguing that the actual lost revenue for Harker Heights is significantly lower than claimed.

As the committee continues to deliberate on House Bill 2894, the implications of these tax exemptions remain a critical topic, with concerns that without careful consideration, local governments may face unsustainable financial pressures while taxpayers bear the brunt of increased tax bills. The committee is expected to weigh these factors heavily in their ongoing discussions.