Relating to the property tax rate imposed by a municipal utility district.
Impact
If enacted, HB2667 will have a significant impact on municipalities and property owners within these utility districts. The statute will limit the ability of local municipal utility districts to impose higher tax rates that could burden property owners, especially in regions experiencing rapid growth. Supporters of the bill argue that such a limitation will protect residents from escalating tax rates that could arise from unplanned increases in utility service costs.
Summary
House Bill 2667 aims to regulate the property tax rate imposed by municipal utility districts in Texas. Specifically, it amends the Texas Water Code to establish a cap on the property tax rate at $1 per $100 of taxable property value. This legislation is intended to provide clarity and predictability regarding property tax liabilities associated with municipal utility services, which are essential for infrastructure and public services in growing areas.
Sentiment
The sentiment surrounding HB2667 appears generally positive among those who advocate for taxpayer protections and fiscal responsibility. Proponents believe that by capping property tax rates, the bill promotes fairness and accountability within municipal utility districts. However, there may be concerns from local governments regarding the limitations placed on their funding capabilities and flexibility in managing infrastructure needs.
Contention
Notably, the cap on tax rates may lead to contention regarding funding for necessary infrastructure developments and maintenance. Some local officials may argue that the inability to raise taxes beyond the established limit could inhibit their response to growing demands for utilities and services as populations increase. Therefore, while the bill seeks to protect property owners, it could create challenges for municipalities in terms of resource allocation and financial sustainability.
Relating to the use of the revenue derived from the municipal hotel occupancy tax by certain municipalities and to the rate at which that tax is imposed by those municipalities.
Relating to the creation of the Fulshear Municipal Utility District No. 3 and the Fort Bend County Municipal Utility District No. 184; providing authority to impose taxes and issue bonds; granting a limited power of eminent domain.