Relating to the repeal of provisions providing for the calculation and effect of a de minimis ad valorem tax rate.
Impact
The proposed changes under SB978 signify a shift in local tax authority. The bill would amend sections of the Tax Code, particularly regarding the voter-approval tax rate that currently applies to municipalities and special taxing districts. This could effectively reduce the accountability these entities have towards voters concerning tax increases, as the specifics around calculating de minimis tax rates will be eliminated.
Summary
SB978 is a legislative act proposed in Texas aimed at repealing certain provisions concerning the calculation and effects of a de minimis ad valorem tax rate. This bill potentially impacts how local governments assess and impose property taxes, especially where voter approval is necessary. By removing these provisions, SB978 seeks to streamline the tax process, making it less burdensome for local entities while possibly affecting how tax increase proposals are framed and presented to constituents.
Sentiment
The sentiment surrounding SB978 appears to be mixed. Proponents of the bill argue that the repeal would simplify tax processes for local governments, making it easier for them to operate without having to navigate complex voter-approval mechanisms. On the other hand, critics of the bill express concerns that the changes may weaken the power of voters and diminish oversight of local tax increases, leading to potential fiscal irresponsibility.
Contention
Notable points of contention include the perceived balance of power between local tax authorities and the constituents they serve. Opponents fear that without voter-approved limitations on tax increases, taxation could rise uncontrollably, burdening residents without their input or consent. Supporters contend that the current structure could stifle necessary funding for local services and projects if every increase necessitates voter approval.
Texas Constitutional Statutes Affected
Tax Code
Chapter 26. Assessment
Section: 07
Chapter 31. Collections
Section: 12
Chapter 33. Delinquency
Section: 08
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.
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.