Texas House Bill HB4764

Texas 2019 - 86th Regular

Caption

Relating to the authority of the Midlothian Municipal Management District No. 3 to impose an ad valorem tax.

Impact

This legislation directly modifies the existing provisions of the Special District Local Laws Code that govern the Midlothian Municipal Management District No. 3. By providing the district with the flexibility to adjust tax rates under specific conditions, the bill aims to enhance the financial capabilities of the district in meeting its obligations and fostering local development. This could lead to increased revenues for the district, which might be used for public services and infrastructure improvements, supporting broader economic growth in the area.

Summary

House Bill 4764 pertains to the authority granted to the Midlothian Municipal Management District No. 3 regarding the imposition of an ad valorem tax. The bill outlines that the district's tax rate shall not exceed 40 cents per $100 valuation. However, it also allows for exceptions wherein the tax rate can exceed this specified limit to facilitate the district's compliance with certain regulatory requirements, provided that it does not authorize the issuance of bonds or obligations if the assessed property value would necessitate such an exceedance.

Contention

The bill may encounter contention regarding the appropriateness of allowing local districts greater leeway in setting tax rates, especially when it could result in higher taxes for property owners. Stakeholders might express concerns about the balance between providing local governments with the necessary funding tools while ensuring taxpayer protections and preventing excessive taxation. Discussions surrounding the bill are likely to emphasize the implications for residents and businesses within the Midlothian Municipal Management District, particularly concerning fiscal responsibility and accountability.