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, HB 177 would significantly alter how property tax rates are calculated and approved. It establishes new formulas for calculating the no-new-revenue tax rate and the voter-approval tax rate, which could lead to a reduction in tax increases and provide more certainty in local budget planning. The changes are set to take effect on January 1, 2026, and are poised to influence the revenue landscape for local government and taxing units across Texas.
Summary
House Bill 177 focuses on the calculation of ad valorem tax rates for certain taxing units including junior college and hospital districts. It aims to streamline the process of determining voter-approval tax rates, particularly for tax units whose maintenance and operations tax rate proposal is below a specified threshold of 2.5 cents per $100 taxable value. The legislation includes changes that would categorize the foregone revenue amount for eligible taxing units as zero for specific years, thereby easing immediate fiscal pressures on these entities.
Contention
While proponents of the bill argue that it simplifies the taxation process and offers much-needed relief to local governments, there are concerns about potential drawbacks. Critics argue that the adjustments could limit the ability of taxing units to recover lost revenues, effectively hindering their ability to fund vital services such as education and healthcare. Moreover, the criteria under which the foregone revenue is calculated have raised questions regarding their fairness and efficacy in addressing the real financial needs of these districts.
Texas Constitutional Statutes Affected
Tax Code
Chapter 26. Assessment
Section: New Section
Section: 04
Section: 063
Section: 07
Section: 075
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; 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 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.
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.
Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit 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 certain 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 certain 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 certain taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.