Texas Senate Bill SB1430

Texas 2019 - 86th Regular

Caption

Relating to clarifying certain terminology, including terminology applicable to tax rate calculations, in relation to the ad valorem tax system.

Impact

The implication of SB1430 is significant for local governments and taxing units looking to impose or adjust tax rates. The updates to terminology and calculations are designed to prevent confusion and ensure compliance with existing tax regulations. With clearer definitions of effective tax rates and voter approval rollback rates, local government bodies will be better equipped to communicate tax-related decisions to their constituents and manage public expectations regarding tax burdens.

Summary

SB1430 serves to clarify certain terms associated with the ad valorem tax system, particularly focusing on the mechanisms used to calculate voter approval tax rates and rollback tax rates. The bill addresses the calculations for effective tax rates in different contexts, including situations of annexation or when new taxing units are involved. By ensuring standardized definitions and formulas, SB1430 aims to enhance transparency and consistency in tax rate calculations across various taxing entities.

Contention

While the bill seeks to streamline tax processes, there are potential points of contention stemming from the adjustments it enacts. Local governments may have differing views on the proposed changes, particularly if they perceive that standardized formulas could limit their flexibility in setting tax rates based on local financial needs. Additionally, the requirement for elections in certain scenarios could be seen as a burden by municipal entities accustomed to more autonomous decision-making in tax matters.