Texas House Bill HB1391

Texas 2021 - 87th Regular

Caption

Relating to the effect of an election at which the voters fail to approve or vote to reduce the ad valorem tax rate adopted by the governing body of a taxing unit.

Impact

The legislation adjusts existing tax code provisions to clarify the requirements for holding elections when a taxing unit proposes a tax rate that exceeds allowable thresholds. This aims to limit unapproved tax increases that could burden residents, ensuring taxpayer awareness and participation in decisions that directly affect their financial obligations. The adjustments made by HB 1391 are expected to improve transparency in tax rate decisions, thus providing a more straightforward framework for fiscal administration at the local level.

Summary

House Bill 1391 seeks to modify the process concerning ad valorem tax rate increases in Texas by establishing specific conditions under which a governing body must hold an election. The bill mandates that if a proposed tax rate exceeds both the no-new-revenue tax rate and the voter-approval tax rate, a public hearing must be conducted. This hearing will inform taxpayers about the proposed tax rates, including the implications of a potential tax increase.

Contention

A notable point of contention surrounding HB 1391 includes debates regarding government authority versus taxpayer rights. Proponents of the bill argue that increasing transparency in the rate-setting process safeguards taxpayers, while opponents may view it as creating additional bureaucratic hurdles that can complicate funding for essential services. Additionally, the response to the bill could be varied, with some stakeholders advocating for the necessity of maintaining or even reducing tax rates, while others might contend the need for flexibility in tax rate adjustments to adequately fund local initiatives.