Relating to the period for which a school district's participation in certain tax increment financing reinvestment zones may be taken into account in determining the total taxable value of property in the school district.
Impact
The overall impact of HB3465 revolves around the ability of school districts to account for tax increment financing zones in calculating their taxable property value. By granting local municipalities the option to extend the duration of reinvestment zones, HB3465 could enable school districts to continue benefiting from these mechanisms longer than previously allowed. This legislation is expected to influence local economic strategies involving redevelopment and financial planning for school districts, thereby enhancing their potential revenue streams for education.
Summary
House Bill 3465 pertains to the determination of total taxable property value within specific school districts, particularly those participating in certain tax increment financing reinvestment zones. The bill introduces an amendment to Section 403.302 of the Government Code by adding a new subsection that applies exclusively to municipalities with populations of 70,000 or less, situated in counties that host all or part of military installations. This amendment allows municipalities to designate a termination date for these reinvestment zones beyond the original date, which could potentially lead to varying fiscal impacts based on local actions.
Contention
Notable points of contention surrounding HB3465 may arise from varying opinions on local governance versus state regulations in tax matters. While proponents argue that this flexibility supports economic development and aligns with local community needs, critics may express concerns about accountability and the long-term financial implications for school districts. As local governments gain more leverage in managing reinvestment zones, tensions between municipalities and school districts regarding tax revenue allocation and priority could lead to debates about the effective use of public funds.
Relating to the authority of the board of directors of a tax increment financing reinvestment zone to use money in the tax increment fund established for the zone to compensate certain homeowners for the increase in taxes associated with the zone.
Relating to the calculation of ad valorem tax rates by certain taxing units that participate in one or more reinvestment zones for tax increment financing.
Relating to the duty of a school district to enter into an ad valorem tax abatement agreement under the Property Redevelopment and Tax Abatement Act for certain property.
Relating to an adjustment for certain school districts under the public school finance system for revenue lost due to the use of the state value of the district's taxable value of property determined by the comptroller of public accounts.
Proposing a constitutional amendment authorizing the legislature to provide that the officials responsible for appraising property for ad valorem taxation in a county may exclude from consideration the value of new or substantially remodeled residential property when determining the market value of an older residence homestead located in or near a tax increment financing reinvestment zone.
Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.
Relating to an adjustment for certain school districts under the public school finance system for revenue lost due to the use of the state value of the district's taxable value of property determined by the comptroller of public accounts.