Relating to the calculation of the ad valorem rollback tax rates of certain taxing units.
Impact
By implementing these changes, SB2301 could significantly affect local governments' financial flexibility regarding taxation during emergencies. The bill is designed to provide these taxing units with more tools to manage fiscal responsibilities in times of crisis while still adhering to overall statutory tax regulations. The adjustments to the tax calculation formulas potentially facilitate more revenue collection for public safety and other essential services, enhancing local government capabilities to respond to disasters or emergencies.
Summary
Senate Bill 2301 aims to amend the Texas Tax Code regarding the calculation of ad valorem rollback tax rates for certain taxing units. The bill introduces modifications to how the effective tax rate and rollback tax rate are calculated, making allowances for tax rate adjustments in situations considered emergencies, such as disasters declared by the governor. Specifically, the bill allows designated officers or employees to use a multiplier of 1.08 instead of 1.05 in certain calculations if conditions such as disaster declarations are met, which could enable taxing units to impose higher tax rates under specific circumstances.
Contention
Notably, SB2301 is designed with a built-in system of checks to ensure that findings for enacting higher tax rates due to emergencies are valid only if they are adopted through a resolution by the governing body of the taxing unit. This adds a layer of accountability and prevents arbitrary tax increases. However, this provision may also lead to contention regarding what constitutes necessary harm or danger that justifies using the higher multiplier rate.
Further_details
The adjustments in taxation processes included in this bill are in response to evolving requirements that taxing units face, especially in times of natural disasters or other emergencies, thereby exhibiting a shift towards more adaptive and responsive local governance in fiscal matters.
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 calculation of the voter-approval tax rate of certain counties and the procedure for the adoption by such a county of a tax rate that exceeds that rate; making conforming changes.
Relating to the calculation of the ad valorem rollback tax rate of a taxing unit and voter approval of a proposed tax rate that exceeds the rollback tax rate.
Relating to the calculation of the ad valorem rollback tax rate of a taxing unit and voter approval of a proposed tax rate that exceeds the rollback tax rate.
Relating to the calculation of the ad valorem rollback tax rate of a taxing unit and voter approval of a proposed tax rate that exceeds the rollback tax rate.