Texas Senate Bill SB1429

Texas 2021 - 87th Regular

Caption

Relating to the alternate provisions for ad valorem tax rate notices when the de minimis rate of a taxing unit exceeds the voter-approval tax rate.

Impact

The implementation of SB1429 is expected to bring a measure of consistency to how taxing units communicate tax rates to the public. By clearly defining and including the de minimis rate in tax notices, the bill aims to ensure that taxpayers understand the implications of the rates set by their local entities. This could potentially change how local governments approach their tax rate discussions and decisions, fostering an environment where voters feel more informed and engaged with local tax matters.

Process

The bill is structured to take immediate effect contingent upon receiving a two-thirds majority in both legislative houses; if not, it is set to take effect on September 1, 2021. This urgency may reflect the ongoing need for clear tax legislation, especially in light of local budgetary pressures. Stakeholders will likely continue to discuss its implications in subsequent legislative sessions and local government meetings.

Summary

Senate Bill 1429 addresses the provisions regarding the notification of ad valorem tax rates for taxing units when the de minimis rate exceeds the voter-approval tax rate. The bill amends Section 26.063 of the Texas Tax Code, introducing a requirement for taxing units to provide additional clarity in their tax rate notices. Specifically, it mandates that the notice includes the de minimis rate alongside the voter-approval tax rate in an effort to enhance transparency for qualified voters regarding their local tax liabilities.

Contention

While the bill introduces measures intended for clarity and enhanced communication, it may also create contention among local governing bodies and taxpayer advocates. Some local government officials might argue that the requirements could complicate the already intricate process of tax rate setting and notifications. Additionally, there could be concerns about the capacity of voters to understand these additional pieces of information amidst an already complex tax code.