Texas House Bill HB250

Texas 2025 - 89th Regular

• Filed: 11/12/24

Caption

Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.

Impact

The implications of HB250 are significant for local governments and school districts in Texas. By modifying the calculation methods of voter-approval tax rates and introducing constraints on how tax rates can be set, this bill can help to stabilize property tax rates and potentially ease the tax burden on residents. The requirement for voter approval for rates exceeding certain thresholds underscores a commitment to participatory governance, allowing taxpayers to have a direct say in fiscal decisions affecting their communities.

Summary

House Bill 250 addresses the calculation of ad valorem tax rates for taxing units in Texas. Specifically, it outlines the process for approving proposed tax rates that exceed the established voter-approval tax rate. The bill seeks to amend several sections of the Education Code and Tax Code to ensure that taxing units adhere to specific formulas when determining tax rates, particularly in times when additional sales and use taxes are imposed. The changes are intended to facilitate transparency and fairness in the tax rate approval process, emphasizing the need for voter input when proposed tax rates surpass established limits.

Contention

Despite its intended benefits, the bill has garnered criticism from various advocacy groups who argue that it may not fully address the complexities of school funding and local governance. Some opponents contend that the mandated formulas could lead to unintended consequences, such as reduced funding for vital services if tax rates cannot be adjusted appropriately to meet rising costs. Opponents also express concerns that the restrictions on tax rate increases could further strain the finances of public entities, particularly in economically disadvantaged areas where the costs of services continue to rise.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 26. Assessment
  • Section: New Section
  • Section: 04
  • Section: 07

• Chapter 31. Collections
  • Section: 12

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: 23601
  • Section: 236

Education Code

• Chapter 45. School District Funds
  • Section: 0032

Local Government Code

• Chapter 120. Election For Reduction Of Funding Or Resources For Certain Primary Law Enforcement Agencies
  • Section: 007

Special District Local Laws Code

• Chapter 3828. Lake View Management And Development Districtin Henderson County
  • Section: 157

• Chapter 8876. Reeves County Groundwater Conservation District
  • Section: 152