Texas Senate Bill SB1437

Texas 2021 - 87th Regular

Caption

Relating to the requirement that certain municipalities and counties conduct an efficiency audit before holding an election to approve the adoption of certain ad valorem tax rates.

Impact

The bill mandates that the governing bodies of affected municipalities and counties pay for the efficiency audit costs, ensuring that independent auditors—approved by the state auditor—are selected to carry out these audits. The outcome of the audits must be publicly discussed and posted on the relevant government websites prior to any elections concerning tax rate approvals. This requirement is set to enhance public awareness and potentially lead to more informed voting decisions by constituents regarding their local tax rates.

Summary

SB1437 requires municipalities with a population of 500,000 or more and counties with a population of one million or more to conduct an efficiency audit before they can hold elections to approve new ad valorem tax rates. This bill intends to promote fiscal responsibility and ensure that local governments are maximizing the effectiveness of their financial management and resource utilization. The legislation emphasizes the need for transparency and accountability in the use of taxpayer funds.

Contention

During discussions, there may be concerns regarding the potential financial burden that the audit costs could place on municipalities and counties, especially for those already operating on tight budgets. Additionally, discussions may arise regarding the independence of auditors and the selection process for approved auditors, with some arguing that this could affect the integrity of the audits. The requirement could also lead to debates over government efficiency and the effectiveness of existing tax regulations.