(TX) Sales tax exemption for disabled vets would impact cities

[unhappycamper]

http://kdhnews.com/opinion/editorials/sales-tax-exemption-for-disabled-vets-would-impact-cities/article_9f7c8fa8-8943-11e2-b986-001a4bcf6878.html

Sales tax exemption for disabled vets would impact cities
Dave Miller | Herald staff writer
Posted: Sunday, March 10, 2013 4:30 am

A bill to exempt 100 percent disabled Texas veterans and surviving spouses from paying sales tax may be well-intentioned, but its effects could be disastrous for some military communities — including Killeen and Copperas Cove.

The bill, HB 1162, was introduced in the Texas Legislature last month by Rep. Ed Thompson, a Republican from Brazoria. The measure, which is in committee, was patterned after an Oklahoma law enacted in 2005 that exempts 100 percent disabled veterans and their un-remarried, surviving spouses from paying sales tax. However, unlike the Oklahoma law, which caps the exemption at $25,000 annually, Thompson’s bill contains no limit.

Tuesday night, the Copperas Cove City Council passed a resolution opposing the pending legislation, largely on the basis of its potential financial impact on the city.

The city’s budget director told the council that the legislation could reduce Cove’s sales tax revenue by about $100,000 annually, noting that was a conservative estimate. This would be in addition to the existing state-mandated property tax exemption received by 100 percent disabled veterans, which decreases the city’s revenue by $370,000 each year — more than 2.5 percent of the municipal budget.