Texas House Bill HB3831

Texas 2017 - 85th Regular

Caption

Relating to the procedure for adopting an ad valorem tax rate that exceeds a certain rate.

Impact

This bill will affect various state laws related to taxation, particularly those governing the ability of local taxing authorities to set their tax rates. By imposing additional procedures for raising tax rates, including public notice and hearing requirements, the legislation could potentially limit the capacity of some taxing units to increase rates without adequate public discussion. This could lead to more concerted local engagement in financial decisions, but it may also increase bureaucratic hurdles for local governments.

Summary

House Bill 3831 seeks to amend the procedure for adopting an ad valorem tax rate that exceeds the current rollback or effective tax rate in Texas. The bill introduces enhanced transparency requirements for taxing units by mandating that before adopting a higher tax rate, the governing body must conduct two public hearings and provide notice to property owners. This is intended to ensure that taxpayers are fully informed about proposed tax increases and the implications for local funding.

Contention

Notable points of contention surrounding HB 3831 focus on the balance between taxpayer protection and local governance flexibility. Proponents argue that these measures are vital for enhancing accountability and ensuring taxpayer awareness about funding decisions. Conversely, opponents may view the additional requirements as cumbersome, claiming that they hinder local governments from responding swiftly to financial needs or emergencies. The discussions could further revolve around whether such regulations disproportionately affect smaller taxing units that may lack resources for extensive public engagement.