Texas 2023 - 88th Regular

Texas Senate Bill SB1251

Filed
2/27/23  
Out of Senate Committee
5/3/23  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

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.

Impact

The impact of SB1251 is significant in shaping the financial governance of school districts. By mandating that school districts cannot adopt a higher tax rate after a voter defeat, it directly acknowledges the authority of voters in determining local tax policy. This alteration in law seeks to ensure that tax rates reflect the desires of the community and serve as a check against potential overreach by school district governing bodies. Consequently, the legislation could lead to greater accountability and transparency concerning how education is funded at the local level.

Summary

SB1251, introduced by Senator Bettencourt, relates to the authority of school district governing bodies in Texas to set an ad valorem tax rate exceeding the district's voter-approval tax rate. The bill impacts the existing Tax Code by adding provisions that prevent school districts from adopting a tax rate over the voter-approved limit in instances where a prior attempt to exceed the limit was rejected by voters. This legislative measure emphasizes restraint on taxation powers of local governance in accordance with voter preferences, effectively reinforcing the control voters have over tax rates applicable to their districts.

Sentiment

Sentiment around SB1251 appears to be mixed among legislators and stakeholders. Proponents argue that the bill honors the will of the voters and safeguards against unwanted tax increases, promoting a sense of fairness in taxation. On the other hand, opponents express concerns that it could limit the financial flexibility of school districts, especially in areas that need additional funding for educational services. The tension lies between the desire for local control and the necessity of adhering to voter mandates regarding taxation.

Contention

The foremost contention surrounding SB1251 lies in the balance between local governance and voter empowerment. While supporters maintain that the bill aligns with democratic principles by ensuring that tax increases are only adopted with voter consent, detractors worry that it could hinder the ability of school districts to respond effectively to funding needs. Procedural concerns regarding the enforcement of such limitations may arise, especially if school districts encounter financial difficulties that necessitate higher funding levels without voter approval. This tension could provoke broader discussions about educational funding and governance in Texas.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 26. Assessment
    • Section: New Section
    • Section: New Section
    • Section: New Section

Companion Bills

TX SB1819

Duplicate 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.

Similar Bills

No similar bills found.