Texas House Bill HB1377

Texas 2009 - 81st Regular

• Out of House Committee: 5/11/09

Caption

Relating to the procedure for reallocating local sales and use taxes.

Impact

If enacted, HB 1377 would establish a clear framework that municipalities could rely on when facing incorrect tax revenue allocations. It requires written notification to municipalities affected by reallocations, allowing them a chance to protest the comptroller's decision. The bill stipulates specific timelines for notification and responses, which aims to enhance transparency and due process regarding local tax matters. This could lead to a more orderly and predictable approach for municipalities when dealing with financial discrepancies.

Summary

House Bill 1377 aims to refine the processes surrounding the reallocation of local sales and use taxes. Primarily, the bill empowers the Texas comptroller to reallocate tax revenues that have been misallocated to municipalities. Under the current code, once it is determined that a municipality did not receive the correct tax revenue, the comptroller can take steps to correct this allocation in a structured manner. The bill outlines the conditions and procedural steps necessary for such reallocations, including providing notice to the affected municipalities and allowing them to contest the comptroller's determinations through hearings.

Contention

Discussion around HB 1377 may bring forth varying opinions related to fiscal autonomy for municipalities. Proponents of the bill argue that it protects municipalities by providing them with the means to address mistakes in tax allocation effectively. Critics, however, may express concerns about reliance on the state comptroller's determinations, potentially viewing it as a centralization of tax authority that might undermine local governance. The final decision by the comptroller and subsequent judicial review process outlined in the bill may also raise concerns about the efficiency and effectiveness of the appeals process for municipalities.