Texas House Bill HB490

Texas 2019 - 86th Regular

Caption

Relating to the administration of the ad valorem tax system.

Impact

The implementation of HB490 is set to standardize operations regarding property tax assessment and collection within Texas. By clarifying the methods of calculation for tax rates, such as maintenance and operation expenses, and new property values, the bill intends to provide a clearer framework for both taxpayers and local government officials. This measure aims to make the tax system more predictable and understandable, potentially reducing disputes and confusion among residents regarding their tax liabilities.

Summary

House Bill 490 addresses the administration of the ad valorem tax system, focusing specifically on the calculation and implementation of property tax rates as defined under the Texas Tax Code. A key aspect of the bill is the establishment of clear guidelines for determining the no-new-revenue effective tax rate and rollback tax rates for taxing units, ensuring transparency and consistency across the state’s taxing jurisdictions. The bill outlines the formulas used to calculate these rates based on maintenance and operation expenses as well as other financial metrics related to property values within the taxing unit.

Contention

While the bill seeks to streamline the administration of the property tax system, there may be concerns regarding local government's flexibility in adjusting tax rates based on evolving community needs. Some local officials could argue that strict adherence to specified formulas may limit their ability to respond to unique local circumstances, ultimately affecting funding for vital services. This balance of maintaining uniformity while allowing room for local autonomy could be a point of contention as the legislation moves through the legislative process.