Texas House Bill HB1165

Texas 2017 - 85th Regular

Caption

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.

Impact

One significant aspect of HB 1165 is its emphasis on the rollback tax rate, which represents the maximum tax rate a local government can impose without necessitating voter consent. The bill stipulates that if a taxing unit wishes to adopt a rate beyond this threshold, it must hold a public election to secure approval from taxpayers. This provision ensures that residents remain engaged and have a voice regarding tax increases, promoting democratic accountability in local governance. Additionally, the bill recognizes disaster scenarios, allowing for a substitution of higher rates under specific circumstances, thus providing flexibility to local bodies during emergencies.

Summary

House Bill 1165 introduces amendments to the Texas Tax Code concerning the calculation of the ad valorem rollback tax rate and the conditions under which voter approval is required for tax rates exceeding this rollback rate. The bill aims to refine the definitions and calculations associated with effective tax rates and rollback tax rates, ensuring that local taxing units can make adjustments proportional to their revenue requirements while maintaining transparency and accountability towards taxpayers.

Contention

While supporters argue that these amendments empower taxpayers by preserving their rights to have a say in tax increases, critics may contend that the added complexities in tax rate calculations could lead to confusion among the general populace. The necessity for public hearings and elections for tax increases can be seen as burdensome for local governments that may require swift fiscal adjustments due to sudden changes in budgetary needs or economic conditions. Such complications might result in delays or obstacles in rolling out necessary public services.

Notable_points

Another point of contention may arise around the provisions related to disaster areas, where taxing units can alter calculations based on federal disaster declarations. Critics might perceive this as a potential loophole that could be exploited, while proponents argue it is a necessary measure for accommodating unforeseen circumstances. HB 1165, therefore, stands at the intersection of fiscal responsibility and governmental responsiveness, aiming to balance the needs of local administrations with taxpayer rights and protections.