LAMPASAS COUNTY, Texas (KXXV) — A proposed bill in the Texas Legislature could bring long-awaited financial relief to Lampasas County. The county has been excluded from a state program that reimburses communities for property tax exemptions granted to 100-percent disabled veterans.
In 2009, Texas passed a constitutional amendment granting a full property tax exemption on the homes of veterans who are completely disabled. While the move was widely supported, it brought unexpected financial consequences for local governments, especially in areas with high veteran populations.
“The exemption had an unintended consequence on counties and municipalities where there's a lot of retired veterans living,” Lampasas County Judge Randall J. Hoyer said.
Recognizing the impact, the state established a partial reimbursement program in 2015 for counties adjacent to U.S. military installations. However, Lampasas County was not included.
“When that bill was passed, Lampasas County got left out. Bell County, Coryell County, Copperas Cove, and Killeen, they were included, but Lampasas County is 1.7 miles from being adjacent to Fort Cavazos, Fort Hood back then. Therefore, we're not eligible for any state reimbursement,” Hoyer said.
That exclusion has had a significant financial impact. In 2024 alone, Lampasas County lost $1.6 million in tax revenue—roughly 16% of its overall budget.
“Right now, this is a huge thing in Lampasas County,” Hoyer said. “It's bigger than broadband, and probably other than water, it is the biggest thing.”
Texas House Bill 2894, currently under consideration, would finally include Lampasas County in the reimbursement program.
Support for the bill is deeply personal for some, like Jane Vaughn, the daughter of a disabled veteran.
“I have a cousin who was in Gulf War. He died recently. My father was Vietnam. So, I have a veteran in every war and conflict since before the Revolutionary War,” Vaughn said.
She believes both state and federal governments have a role to play.
“I honestly believe that should be federally reimbursed, because it is federal property, but I can also understand and support the state stepping in,” Vaughn said.
While pushing for legislative change, Hoyer emphasized that the county’s goal is not to remove or challenge the veteran exemption itself.
“We are not opposed to the exemption. We feel like the veterans earned that exemption. They deserve it 100%. We're not trying to take that exemption away from them whatsoever. We need to fix it in some way without taking that away from the veterans,” Hoyer said.
