Texas House Bill HB3614

Texas 2017 - 85th Regular

Caption

Relating to the definition of new property value for purposes of the calculation of certain ad valorem tax rates for a county.

Impact

The impact of HB3614 is significant as it alters the standard for tax calculations which can affect county revenue streams. By modifying the definition of new property value, the bill intends to enhance consistency in tax assessments and ensure local governments can adequately plan for revenue based on more predictable property valuations. This is particularly important in rapidly developing areas where property values may fluctuate significantly year over year due to new constructions and annexations.

Summary

House Bill 3614 amends existing tax code provisions regarding the definition of 'new property value' used in calculating certain ad valorem tax rates for counties in Texas. The bill provides a clear framework for what constitutes new property, encompassing properties added to the appraisal roll through annexation or improvements made after January 1 of the preceding tax year. This clarity seeks to aid counties in correctly assessing their taxable property and establishing appropriate tax rates each year.

Contention

There are notable points of contention surrounding this bill, particularly regarding how the definition of new property values may influence local financing and service provisions. Opponents may argue that while the bill aims for clarity, it could also potentially limit the ability of counties to maximize tax revenue through new assessments, constraining funding for local services. Throughout the discussions, concerns may arise regarding the balance between maintaining fiscal responsibilities for counties while also ensuring fairness in property tax assessments across the board.