Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved.
Impact
If enacted, HB3601 would modify the methods through which local governing bodies calculate their respective tax rates, potentially reducing the ability of such bodies to unilaterally set tax rates above the no-new-revenue threshold without triggering a voter election. This could lead to a more gradual increase in the burden of property taxes on residents, as increases would be capped by the voter-approval tax rates unless citizens vote to approve higher rates. The bill's implementation may influence local budget planning, particularly for municipalities relying on property tax revenue for services.
Summary
House Bill 3601 pertains to the calculation of certain ad valorem tax rates imposed by taxing units in Texas. The bill aims to amend the tax code to clarify how no-new-revenue tax rates and voter-approval tax rates are established. This legislation seeks to create more transparency and consistency in the tax rate approval process, particularly in instances where proposed rates exceed the established voter-approval tax rate. The bill emphasizes the importance of public hearings and voter engagement when tax rates are proposed to ensure residents are informed about potential increases in their property taxes.
Contention
There may be points of contention surrounding HB3601. Proponents are likely to argue that the bill enhances transparency and gives local residents a stronger voice in tax matters, while critics may express concerns that it could create operational difficulties for local governments when they need to respond quickly to funding needs or adapt to changing economic conditions. Furthermore, discussions may arise regarding the adequacy of existing tax revenue to meet local service demands and whether additional constraints on taxation could impact service delivery, especially in underserved communities.
Texas Constitutional Statutes Affected
Tax Code
Chapter 26. Assessment
Section: New Section
Section: 063
Section: 075
Water Code
Chapter 49. Provisions Applicable To All Districts
Section: 23601
Section: 23602
Section: 23603
Health And Safety Code
Chapter 281. Hospital Districts In Counties Of At Least 190,000
Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.
Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.
Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.
Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.
Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.
Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.
Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.
Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.
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.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.
Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.
Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.
Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.
Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.
Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.
Relating to an exemption from ad valorem taxation by a school district for maintenance and operations purposes of the appraised value of a residence homestead and the offsetting of the resulting revenue loss to school districts with state sales and use tax revenue.