BILL ANALYSIS S.B. 2350 By: Bettencourt Ways & Means Committee Report (Unamended) BACKGROUND AND PURPOSE In 2022, officials from the City of La Marque and the Galveston County tax assessor-collector requested that Senator Bettencourt seek an attorney general opinion regarding recalculating the city's property tax rates. The city contended that calculation errors made in prior years regarding the city's voter-approval tax rate set the stage for a rollback election that otherwise would not have been needed. S.B. 2350 seeks to clarify that, for purposes of calculating a taxing unit's unused increment rate, the unit's voter-approval tax rate in the applicable preceding tax year used in that calculation is the rate adopted by the unit during the applicable preceding tax year. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS S.B. 2350 amends the Tax Code to establish that, for purposes of calculating a taxing unit's unused increment rate for property tax purposes, the unit's voter-approval tax rate in the applicable preceding tax year used in that calculation is the rate adopted by the unit during the applicable preceding tax year. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2023.
BILL ANALYSIS
# BILL ANALYSIS
S.B. 2350
By: Bettencourt
Ways & Means
Committee Report (Unamended)
S.B. 2350
By: Bettencourt
Ways & Means
Committee Report (Unamended)
BACKGROUND AND PURPOSE In 2022, officials from the City of La Marque and the Galveston County tax assessor-collector requested that Senator Bettencourt seek an attorney general opinion regarding recalculating the city's property tax rates. The city contended that calculation errors made in prior years regarding the city's voter-approval tax rate set the stage for a rollback election that otherwise would not have been needed. S.B. 2350 seeks to clarify that, for purposes of calculating a taxing unit's unused increment rate, the unit's voter-approval tax rate in the applicable preceding tax year used in that calculation is the rate adopted by the unit during the applicable preceding tax year.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS S.B. 2350 amends the Tax Code to establish that, for purposes of calculating a taxing unit's unused increment rate for property tax purposes, the unit's voter-approval tax rate in the applicable preceding tax year used in that calculation is the rate adopted by the unit during the applicable preceding tax year.
EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2023.
BACKGROUND AND PURPOSE
In 2022, officials from the City of La Marque and the Galveston County tax assessor-collector requested that Senator Bettencourt seek an attorney general opinion regarding recalculating the city's property tax rates. The city contended that calculation errors made in prior years regarding the city's voter-approval tax rate set the stage for a rollback election that otherwise would not have been needed. S.B. 2350 seeks to clarify that, for purposes of calculating a taxing unit's unused increment rate, the unit's voter-approval tax rate in the applicable preceding tax year used in that calculation is the rate adopted by the unit during the applicable preceding tax year.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
S.B. 2350 amends the Tax Code to establish that, for purposes of calculating a taxing unit's unused increment rate for property tax purposes, the unit's voter-approval tax rate in the applicable preceding tax year used in that calculation is the rate adopted by the unit during the applicable preceding tax year.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2023.