LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 26, 2023 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1251 by Bettencourt (Relating to the authority of the governing body of a school district to adopt an ad valorem tax rate that exceeds the district's voter-approval tax rate.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapter 26 of the Tax Code to prohibit the governing body of a school district located in a disaster area from adopting a tax rate that exceeds the voter-approval tax rate without holding an election if, in that tax year, the governing body of the school district adopted a tax rate that exceeded the voter-approval tax rate, an election was held, and the proposition was not approved by the voters.The bill would clarify that the governing body of a school district cannot adopt a tax rate above the voter-approval tax rate in response to funding needs associated with a disaster that occurred in the prior year if voters have already rejected such a rate at an election in the current tax year.While this type of situation is likely uncommon, the voters' rejection in a previous election means the tax rate would be rolled back to the voter-approval tax rate (VATR) and the ISD would not receive additional enrichment yield that the higher rate (above the VATR) would have generated in the current year. As a result, there could be a collections loss to school districts. Under provisions of the Education Code, the school district tax revenue loss is partially transferred to the state. However, the cost is not anticipated to be significant. Local Government ImpactThe fiscal impact to school districts cannot be determined. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, AF, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 26, 2023
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1251 by Bettencourt (Relating to the authority of the governing body of a school district to adopt an ad valorem tax rate that exceeds the district's voter-approval tax rate.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1251 by Bettencourt (Relating to the authority of the governing body of a school district to adopt an ad valorem tax rate that exceeds the district's voter-approval tax rate.), As Introduced
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1251 by Bettencourt (Relating to the authority of the governing body of a school district to adopt an ad valorem tax rate that exceeds the district's voter-approval tax rate.), As Introduced
SB1251 by Bettencourt (Relating to the authority of the governing body of a school district to adopt an ad valorem tax rate that exceeds the district's voter-approval tax rate.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 26 of the Tax Code to prohibit the governing body of a school district located in a disaster area from adopting a tax rate that exceeds the voter-approval tax rate without holding an election if, in that tax year, the governing body of the school district adopted a tax rate that exceeded the voter-approval tax rate, an election was held, and the proposition was not approved by the voters.The bill would clarify that the governing body of a school district cannot adopt a tax rate above the voter-approval tax rate in response to funding needs associated with a disaster that occurred in the prior year if voters have already rejected such a rate at an election in the current tax year.While this type of situation is likely uncommon, the voters' rejection in a previous election means the tax rate would be rolled back to the voter-approval tax rate (VATR) and the ISD would not receive additional enrichment yield that the higher rate (above the VATR) would have generated in the current year. As a result, there could be a collections loss to school districts. Under provisions of the Education Code, the school district tax revenue loss is partially transferred to the state. However, the cost is not anticipated to be significant.
Local Government Impact
The fiscal impact to school districts cannot be determined.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, AF, SD, BRI
JMc, AF, SD, BRI