Texas Senate Bill SB1131

Texas 2021 - 87th Regular

Caption

Relating to the calculation of "last year's levy" for purposes of calculating certain ad valorem tax rates of a taxing unit.

Impact

The impact of SB1131 on state laws primarily pertains to how local governments calculate their ad valorem taxes. By providing a clearer definition and calculation method for 'last year's levy', the bill intends to ensure consistency across various taxing units. This change can potentially enhance the transparency of tax assessments, which is critical for property owners as it directly influences their tax obligations. Additionally, it reduces ambiguity around the treatment of properties undergoing appeal, thereby offering a more predictable fiscal environment for local governments.

Summary

SB1131 addresses the calculation of 'last year's levy' for the purpose of determining certain ad valorem tax rates. The bill amends the Tax Code to clarify how last year’s levy is calculated, which includes specific adjustments for properties under appeal and tax refunds from previous years. This legislative change aims to create a more standardized method for local taxing units in Texas to calculate their tax rates based on the taxable values from the previous year.

Contention

One notable point of contention surrounding SB1131 is the method by which properties under appeal are accounted for in tax rate calculations. Critics may argue that the adjustments outlined in the bill could lead to inequities in taxation, depending on the extent and nature of appeals. By excluding certain properties from the taxable value, there is a concern that this could unfairly shift the tax burden onto other property owners. Stakeholders from various localities may express differing views on whether the proposed changes best serve the interests of their communities.