Texas House Bill HB303

Texas 2017 - 85th 1st C.S.

Caption

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

Impact

By re-defining new property value, HB303 impacts how counties calculate their ad valorem tax rates, potentially leading to changes in revenue collected from property taxes. The inclusion of oil and gas interests is particularly significant, as it recognizes the value generated from natural resources and improves the taxation framework surrounding them. This could lead to increased funding for county services, but may also shift tax burdens depending on property value assessments.

Summary

House Bill 303 aims to amend the definition of 'new property value' for the calculation of certain ad valorem tax rates in Texas counties. The bill specifically defines new property value to encompass the total taxable value of property added to the appraisal roll, including those resulting from annexation and improvements that occurred after January 1 of the preceding tax year. Notably, the bill breaks new ground by adding stipulations for property related to oil and gas interests, making it relevant to county tax assessments in areas rich in natural resources.

Contention

While the bill may seem straightforward, it could lead to contention among stakeholders who may feel the changes could either benefit or disadvantage certain property owners, especially those in the oil and gas sectors. Counties reliant on property tax revenue from these sectors could see fluctuations in tax revenues based on production rates. Conversely, property owners may be concerned about their tax assessments increasing with the new definitions and classifications introduced by HB303.