LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 21, 2013 TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1434 by Hegar (Relating to the definition of new property value for purposes of the calculation of certain ad valorem tax rates for a county.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Section 26.012, of the Tax Code, related to property tax rate calculation definitions, to specify that for purposes of a county, the increase in total taxable value of real property interests in oil or gas in place listed on the appraisal roll in the current year attributable to the production of oil or gas from wells completed after January 1 of the preceding year is included as "new property." The change in the definition of new property proposed by the bill would increase the rollback tax rate in certain counties with increases in the taxable value of oil and gas real property. This would enable those counties to adopt a higher tax rate without triggering certain notices, hearings, and a potential election to reduce the tax rate to the rollback tax rate. Consequently, to the extent that the affected counties take advantage of the ability to increase tax rates without the consequences discussed above, there would be a fiscal gain in those counties. The actual tax rate increases that may result from the bill cannot be predicted, so the fiscal gain cannot be estimated. Local Government Impact The change in the definition of new property proposed by the bill would increase the rollback tax rate in certain counties with increases in the taxable value of oil and gas real property. This would enable those counties to adopt a higher tax rate without triggering certain notices, hearings, and a potential election to reduce the tax rate to the rollback tax rate. Consequently, to the extent that the affected counties take advantage of the ability to increase tax rates without the consequences discussed above, there would be a fiscal gain in those counties. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 21, 2013
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1434 by Hegar (Relating to the definition of new property value for purposes of the calculation of certain ad valorem tax rates for a county.), As Introduced
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1434 by Hegar (Relating to the definition of new property value for purposes of the calculation of certain ad valorem tax rates for a county.), As Introduced
Honorable Tommy Williams, Chair, Senate Committee on Finance
Honorable Tommy Williams, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1434 by Hegar (Relating to the definition of new property value for purposes of the calculation of certain ad valorem tax rates for a county.), As Introduced
SB1434 by Hegar (Relating to the definition of new property value for purposes of the calculation of certain ad valorem tax rates for a county.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Section 26.012, of the Tax Code, related to property tax rate calculation definitions, to specify that for purposes of a county, the increase in total taxable value of real property interests in oil or gas in place listed on the appraisal roll in the current year attributable to the production of oil or gas from wells completed after January 1 of the preceding year is included as "new property." The change in the definition of new property proposed by the bill would increase the rollback tax rate in certain counties with increases in the taxable value of oil and gas real property. This would enable those counties to adopt a higher tax rate without triggering certain notices, hearings, and a potential election to reduce the tax rate to the rollback tax rate. Consequently, to the extent that the affected counties take advantage of the ability to increase tax rates without the consequences discussed above, there would be a fiscal gain in those counties. The actual tax rate increases that may result from the bill cannot be predicted, so the fiscal gain cannot be estimated.
Local Government Impact
The change in the definition of new property proposed by the bill would increase the rollback tax rate in certain counties with increases in the taxable value of oil and gas real property. This would enable those counties to adopt a higher tax rate without triggering certain notices, hearings, and a potential election to reduce the tax rate to the rollback tax rate. Consequently, to the extent that the affected counties take advantage of the ability to increase tax rates without the consequences discussed above, there would be a fiscal gain in those counties.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD, SJS
UP, KK, SD, SJS