Texas Senate Bill SB2775

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

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.

Impact

The implications of SB 2775 extend to the governance of taxation at local levels, ensuring that school districts maintain operational integrity while adhering to fluctuating funding amounts. By enforcing a reduction mechanism for tax rates based on past funding levels, the bill attempts to prevent instances where districts could overly tax their constituents when state and local funds exceed prior guaranteed levels. This aims to safeguard taxpayers while allowing for necessary funding adjustments.

Summary

Senate Bill 2775 aims to modify the calculation of certain ad valorem tax rates for taxing units in Texas. The bill is pertinent in contexts where proposed tax rates exceed the established voter-approval tax rate, implementing changes to ensure that school districts manage tax rate adjustments appropriately in accordance with fluctuations in state and local funding levels. This adjustment seeks to provide a framework that mandates reductions in tax rates under specific financial conditions affecting a district's funding.

Contention

As the bill proposes significant changes to how tax rates are evaluated and adjusted, it is likely to stir debate among various stakeholders, particularly between those who advocate for stronger local control over taxation and those who prioritize fiscal responsibility on a broader state level. Some may argue that the changes could restrict the financial autonomy of local governments, whereas supporters might see it as essential for maintaining equitable funding across regions. The adjustments could also challenge existing frameworks used by taxing units, potentially requiring additional administrative adjustments.

Texas Constitutional Statutes Affected

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: 23602
  • Section: New Section

Tax Code

• Chapter 26. Assessment
  • Section: 04
  • Section: New Section
  • Section: 063
  • Section: 07
  • Section: 075
  • Section: 0501

Education Code

• Chapter 45. School District Funds
  • Section: 0032

Local Government Code

• Chapter 120. Election For Reduction Of Funding Or Resources For Certain Primary Law Enforcement Agencies
  • Section: 007