Texas Senate Bill SB1395

Texas 2019 - 86th Regular

Caption

Relating to voter approval of a proposed ad valorem tax rate that exceeds the rollback tax rate.

Impact

If enacted, SB1395 is expected to strengthen the role of voters in local government tax decisions, promoting transparency and accountability. By mandating a public vote for higher tax rates, it addresses concerns over potential overreach by local taxing authorities. This shift could limit the capacity of governing bodies to impose increases without direct public consent, potentially affecting funding for local projects and initiatives that depend on tax revenues.

Summary

SB1395 aims to modify the conditions under which an ad valorem tax rate that exceeds the rollback tax rate can be enacted by requiring voter approval. Specifically, if a governing body proposes a tax rate higher than the rollback rate, registered voters in the taxing unit will have to vote to approve this rate. The measure also allows for special provisions in the event of disasters, permitting a tax rate increase without a vote only for the year following a disaster when federal assistance is requested by the state. This bill seeks to enhance taxpayer control over tax rates within their jurisdictions.

Contention

The primary point of contention surrounding SB1395 is the balance between local government authority and voter control. Proponents argue that it empowers taxpayers and ensures their voices are heard, while opponents claim it may hinder local governments' ability to address urgent financial needs, especially in times of disaster or financial strain. There is also concern that the requirement for a public vote could delay necessary funding decisions, thus impacting timely responses to community needs.