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
If enacted, HB250 would significantly influence how taxing units across Texas determine their tax rates, impacting local funding for services. Particularly, the changes in the computation of the voter-approval tax rate may restrict the ability of local governments to raise taxes without explicit voter approval. This could lead to decreased revenue for taxing units, forcing them to reevaluate their budgetary decisions and funding priorities. The bill's provisions are set to take effect for ad valorem taxes imposed in tax years beginning on or after January 1, 2026, providing a timeline for local governments to prepare for these changes.
Summary
House Bill 250 introduces provisions related to the calculation of ad valorem tax rates for taxing units in Texas. This bill amends existing tax code regulations, specifically targeting how the no-new-revenue and voter-approval tax rates are computed. These changes aim to provide more clarity and consistency in tax calculations, potentially affecting local governments' ability to set and approve tax rates, especially when they exceed established thresholds. The bill also includes conforming changes to ensure that outdated provisions are removed, streamlining the tax code as it pertains to ad valorem taxes.
Contention
Significant points of contention surrounding HB250 focus on concerns from local governments regarding the restriction of their authority to manage tax rates autonomously. Critics argue that limiting local control could hinder a municipality's ability to respond to community needs effectively, especially in times of economic difficulty. Additionally, the requirement for elections to approve tax rates exceeding the voter-approval threshold is viewed by some as an unnecessary bureaucratic obstacle that could impede timely funding for essential services. Proponents of the bill, however, argue that it is a necessary reform to enhance taxpayer protections and ensure responsible fiscal management.
Texas Constitutional Statutes Affected
Tax Code
Chapter 26. Assessment
Section: New Section
Section: 05
Section: 07
Water Code
Chapter 49. Provisions Applicable To All Districts
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 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 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.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.