Texas House Bill HB2966

Texas 2021 - 87th Regular

Caption

Relating to the repeal of provisions providing for the calculation and effect of a de minimis ad valorem tax rate.

Impact

Upon enactment, HB 2966 would significantly alter the landscape of ad valorem tax applications in special districts. These changes include removing the provisions that require voter approval for certain tax rates exceeding established limits, which could lead to a more streamlined process for tax adjustments during financial exigencies. Proponents of the bill argue that this will enable districts to better react to emergencies and financial needs without the delays associated with requiring voter elections, thus making them more financially agile.

Summary

House Bill 2966 addresses the repeal of provisions concerning the calculation and effect of a de minimis ad valorem tax rate in Texas. The bill proposes amendments to various sections of the Special District Local Laws Code along with sections of the Tax Code that currently have stipulations about how certain taxes are imposed and managed within specific districts. The changes primarily focus on the applicability of certain tax code provisions which determine how local districts can raise taxes and require voter approval for any increases beyond specified thresholds.

Contention

The main points of contention surrounding HB 2966 revolve around concerns regarding taxpayer protections. Critics argue that repealing the de minimis tax provisions reduces transparency and accountability to voters, potentially allowing taxing units to increase rates without the consent of the constituents. Such a change could lead to higher property taxes for residents without sufficient checks and balances, prompting fears of governmental overreach. Advocates for taxpayer rights worry that local control could be undermined, as communities would lose the ability to directly vote on important fiscal matters affecting them.