LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 19, 2023 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1814 by Bettencourt (relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), Committee Report 2nd House, Substituted No fiscal implication to the State is anticipated. The bill would amend Chapter 26 of the Tax Code to define current debt service (for the purpose of calculating the current debt rate of a taxing unit) as meaning the minimum dollar amount required to be expended for debt service for the current year. The bill would establish requirements for adopting an interest and sinking tax rate that exceeds the rate as determined by Subsection 26.05 (a)(1) of the Tax Code. If such a debt rate were to be adopted, the designated officer or employee would recalculate the voter-approval rate to account for the new current debt rate for that year.Under current law "Current debt" means debt service for the current year. Implementing the provisions of the bill could require some taxing units to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law if they do not adopt a higher tax rate as provided by the bill.The bill would make conforming changes to the notice of public meeting to discuss budget and proposed tax rate. Local Government ImpactThe bill would amend a current law definition which now reads, "Current debt means debt service for the current year." Implementing the provisions of the bill could require some taxing units to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law if they do not adopt a higher tax rate as provided by the bill. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, BRI, SD, AF
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 19, 2023
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1814 by Bettencourt (relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), Committee Report 2nd House, Substituted
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1814 by Bettencourt (relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), Committee Report 2nd House, Substituted
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1814 by Bettencourt (relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), Committee Report 2nd House, Substituted
SB1814 by Bettencourt (relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), Committee Report 2nd House, Substituted
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 26 of the Tax Code to define current debt service (for the purpose of calculating the current debt rate of a taxing unit) as meaning the minimum dollar amount required to be expended for debt service for the current year. The bill would establish requirements for adopting an interest and sinking tax rate that exceeds the rate as determined by Subsection 26.05 (a)(1) of the Tax Code. If such a debt rate were to be adopted, the designated officer or employee would recalculate the voter-approval rate to account for the new current debt rate for that year.Under current law "Current debt" means debt service for the current year. Implementing the provisions of the bill could require some taxing units to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law if they do not adopt a higher tax rate as provided by the bill.The bill would make conforming changes to the notice of public meeting to discuss budget and proposed tax rate.
Local Government Impact
The bill would amend a current law definition which now reads, "Current debt means debt service for the current year." Implementing the provisions of the bill could require some taxing units to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law if they do not adopt a higher tax rate as provided by the bill.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, BRI, SD, AF
JMc, KK, BRI, SD, AF