LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 10, 2023 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1814 by Bettencourt (Relating to the definition of current debt service for the purpose of calculating the current debt rate of a taxing unit for ad valorem tax purposes.), As Introduced 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. 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. Local Government ImpactThe bill would amend a current law definition which now reads, "Current debt means debt service for the current year." As a result, local governments could be required to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law. 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 10, 2023
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1814 by Bettencourt (Relating to the definition of current debt service for the purpose of calculating the current debt rate of a taxing unit for ad valorem tax purposes.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1814 by Bettencourt (Relating to the definition of current debt service for the purpose of calculating the current debt rate of a taxing unit for ad valorem tax purposes.), 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
SB1814 by Bettencourt (Relating to the definition of current debt service for the purpose of calculating the current debt rate of a taxing unit for ad valorem tax purposes.), As Introduced
SB1814 by Bettencourt (Relating to the definition of current debt service for the purpose of calculating the current debt rate of a taxing unit for ad valorem tax purposes.), As Introduced
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. 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.
Local Government Impact
The bill would amend a current law definition which now reads, "Current debt means debt service for the current year." As a result, local governments could be required to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law.
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