Texas House Bill HB2208

Texas 2019 - 86th Regular

Caption

Relating to an adjustment under the foundation school program of the taxable value of property for school districts required to provide social security coverage for district employees.

Impact

If HB2208 is enacted, it will significantly modify how school districts are assessed in terms of property value for taxation. Specifically, districts providing social security will see a decrease in the taxable valuation of their properties based on their social security contributions. This measure could lead to alterations in the revenue generated from property taxes, potentially affecting the overall funding available to those school districts. The bill aims to offer equitable adjustments for districts that have been mandated to extend additional benefits, thus acknowledging the financial strain these requirements might impose.

Summary

House Bill 2208 proposes an adjustment under the foundation school program specifically aiming at school districts that provide social security coverage for their employees. This bill amends the Education Code by adding a new section that allows the commissioner to reduce the taxable value of property for those districts. The reduction in taxable property value correlates with the percentage of the district's required contribution to social security coverage prior to January 1, 2019. This bill directly influences the financial framework within which school districts operate, particularly concerning property taxes and funding allocations.

Contention

Discussions surrounding HB2208 may raise questions regarding the fairness of the adjustments. Proponents argue that it is crucial to support school districts providing these benefits, ensuring they are not financially penalized for their efforts to offer comprehensive employee coverage. However, opponents may express concerns regarding the implications of lowering property valuations on public school funding and the alternative impacts on non-privileged districts that may not benefit from such provisions. The irrevocable finality of the commissioner's decisions under this bill could further complicate the discussions by limiting the ability for districts to appeal any taxable value adjustments.