Harker Heights Mayor Michael D. Blomquist is pleased to share significant progress in the City’s efforts to address the financial impact on City services of the State’s property tax exemption for 100% disabled veterans. On May 19, 2025, the Texas Senate passed HB 2894 with a committee substitute that includes reimbursement relief for Harker Heights. The bill now returns to the House, where members must accept and approve the Senate's substitute version — a vital step toward reconciliation and final passage. Once approved, the bill will move to the Governor’s desk for signature into law.
This milestone follows years of advocacy by the City, which has long been disproportionately affected by the exemption program. Since 2010, Harker Heights has lost more than $25.6 million in ad valorem tax revenue, with a $4.39 million loss this fiscal year alone. These exemptions are growing at nearly 17% per year, and in 2024, they removed $827 million in taxable value from the City’s tax roll, accounting for 79.3% of all exemption-related losses.
Despite being the second most impacted city in Texas, Harker Heights has not previously qualified for state reimbursement due to a technicality in the 2015 legislation, which restricts relief to cities located adjacent to military installations. Harker Heights and other communities located just beyond that threshold from Fort Cavazos, have been excluded, despite serving a large population of disabled veterans drawn to its proximity to the base and VA services.
The City emphasizes that veteran exemptions disproportionately impact communities near military installations, where veterans choose to live for access to services and quality of life. City leaders want to be clear: Harker Heights fully supports and honors its veterans and does not oppose the exemptions. However, they urge the State to fully fund any mandates it places on local governments. Without adequate reimbursement, cities like Harker Heights are forced to make difficult budgetary decisions, potentially reducing service levels that impact all residents, including the veterans, these exemptions are meant to support.
The City extends its deepest gratitude to those who have championed this issue over the years. Special thanks go to former City Councilmember Tony Canterino, whose early advocacy helped bring attention to the issue; State Representative Hillary Hickland, whose leadership has been vital in advancing the bill in the House; and Texas Senator Pete Flores, who successfully carried the bill through the Senate. The City also recognizes and appreciates the efforts of many dedicated individuals working behind the scenes to make this long-awaited progress possible.
Inclusion in the reimbursement program represents a critical and overdue step in recognizing the unique financial pressures placed on military-adjacent communities. Harker Heights looks forward to the successful reconciliation and Governor Abbott’s signing of HB 2894 into law and remains committed to delivering high-quality services for all its residents.