COPPERAS COVE, Texas (KXXV) — The City of Copperas Cove is bracing for a significant financial hit — an estimated $3.8 million in lost local revenue — due to changes under a new Texas law.
City Manager Ryan Haverlah said the impact will be felt across the board.
“It has an impact on everybody, even the disabled veterans in our community,” Haverlah said.
In previous years, only cities located directly adjacent to a U.S. military installation – such as Fort Hood – were reimbursed by the state for property tax exemptions granted to 100% disabled veterans.
However, that policy excluded nearby cities that also have a substantial veteran population but are not directly bordering a military base.
“They may not have an immediate direct connection with Fort Hood, but they are feeling the same level of impact that Copperas Cove is feeling,” Haverlah said.
That changed this year with the passage of House Bill 2894. The legislation expanded relief payments to more communities but did not include additional funding in the state budget to offset the costs.
While the expansion is seen as a victory for some cities, Haverlah said it poses a serious challenge for Copperas Cove.
“We really fought hard many years ago to at least have some amount of relief payment, and when House Bill 2894 passed this year, there was not a corresponding increase to the budget, and that's the state budget to help pay for that expansion of giving that relief payment to other communities. So, in a sense, I'm disappointed,” he said.
City leaders warn that the financial shortfall could result in delayed infrastructure repairs, fewer public safety hires, and stretched municipal services.
“Nobody that has gone to the state legislator to talk about the impact of the exemption has ever said disabled veterans should not receive a benefit,” Haverlah added. “It just hasn't been sufficient enough to get something passed.”
