Texas House Bill HB1192

Texas 2019 - 86th Regular

Caption

Relating to the amount deducted from certain distributions of local tax revenue as the state's share.

Impact

The enactment of HB 1192 is expected to have significant effects on the financial relationship between the state and local governments. By altering the percentage deducted from local taxing units before the distribution of revenues, the bill may reduce the amount of funding local jurisdictions receive. This could lead to budgetary constraints for these units, which may rely heavily on local tax revenues for essential services, hence necessitating adjustments in local budgets to cope with reduced allocations.

Summary

House Bill 1192 seeks to modify the current procedures regarding the deduction of state service fees from local tax revenue distributions. The bill outlines that prior to the distribution of local sales and use tax fees to eligible taxing units, the comptroller will deduct a certain percentage as a charge for the state's services. This aims to streamline financial processes associated with local tax distributions, potentially impacting the fiscal autonomy of local governments and how funds are allocated at the local level.

Contention

Notable points of contention surrounding the bill include concerns over the implications for local governance and financial independence. Critics argue that by increasing state control over local tax revenues, the bill would diminish the ability of local governments to self-manage their finances and meet specific community needs. Proponents may argue that the changes are essential for ensuring efficient state operations and managing fiscal responsibilities effectively.