Relating to the vote required by the governing body of a taxing unit to adopt an ad valorem tax rate that exceeds the voter-approval tax rate or authorize the issuance of tax bonds.
Impact
If passed, HB5303 will significantly affect how state and local governments can maneuver fiscal policies related to taxation and bond issuance. The requirement for a supermajority vote may slow the process of adopting tax increases or issuing debt, as it requires broader consensus among governing officials. Proponents of the bill argue that these measures would protect taxpayers from hasty financial decisions by ensuring that a significant majority agrees on such critical issues. This could enhance fiscal responsibility at the local level, potentially leading to more cautious financial planning and consideration of the public's input.
Summary
House Bill 5303 aims to amend the existing tax and government codes to introduce a higher threshold for the adoption of ad valorem tax rates and the issuance of general obligation bonds by taxing units. Specifically, the bill mandates that at least 60% of the governing body must approve the issuance of general obligation bonds. Furthermore, for a taxing unit to adopt a tax rate that exceeds the voter-approval tax rate following a failed proposition, 80% of the governing body is required to approve the new rate by a record vote. This change reflects an effort to provide more stringent financial governance at local levels and increase accountability in tax rate decisions.
Contention
However, the bill has faced some contention. Critics argue that such requirements could hinder local governments' ability to respond quickly to fiscal needs, especially in times of economic distress when quick decisions may be necessary. They express concerns that this supermajority requirement could make it excessively challenging to fund essential services and infrastructure improvements, thereby hampering local governance. There is also a worry that this legislation could disproportionately impact smaller communities that may struggle to meet the higher voting thresholds due to limited political representation or differing priorities among governing body members.
Texas Constitutional Statutes Affected
Government Code
Chapter 1253. General Obligation Bonds Issued By Political Subdivisions
Section: New Section
Tax Code
Chapter 26. Assessment
Section: New Section
Water Code
Chapter 49. Provisions Applicable To All Districts
Identical
Relating to the vote required by the governing body of a taxing unit to adopt an ad valorem tax rate that exceeds the voter-approval tax rate or authorize the issuance of tax bonds.
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 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 authority of the governing body of a school district to adopt an ad valorem tax rate that exceeds the district's voter-approval tax rate.