Texas House Bill HB735

Texas 2019 - 86th Regular

Caption

Relating to the calculation of the rollback tax rate of a school district and a related study.

Impact

The bill specifically adjusts how school districts may calculate their rollback tax rates starting from the 2019 tax year, which will affect fiscal planning and budgeting for these educational entities. By allowing districts to utilize a higher baseline for their tax rate calculations, the bill seeks to prevent drastic reductions in funding that could result from fluctuations in property value assessments. Such an approach will particularly benefit districts with existing high operational costs and debts, ensuring sustainable funding levels.

Summary

House Bill 735 aims to amend the calculation of the rollback tax rate for school districts in Texas. The legislation introduces provisions that allow districts adopted tax rates to be determined based on a combination of their previous highest maintenance and operations tax rates and current debt rates. This change serves to provide a safety net for school districts, ensuring that their rollback tax rate reflects significant operational expenses and debt obligations, thus promoting financial stability in education funding.

Contention

Discussions around HB 735 may highlight concerns related to its impact on fiscal responsibilities and the equitable distribution of tax burdens across districts. Opponents could argue that this measure may lead to increased tax rates for property owners in these districts, potentially creating a financial strain. Furthermore, there are discussions on whether the ability to increase rollback rates diminishes the incentive for school districts to manage their finances prudently, possibly leading to inefficiencies down the line.