BILL ANALYSIS Senate Research Center S.B. 2350 88R5838 RDS-D By: Bettencourt Local Government 4/10/2023 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The longstanding tradition for local governments is that once the property tax rate has been adopted, no changes can be made to the truth intaxation worksheets that are used to calculate the no-new-revenue rate and the voter-approval rate for that tax year. There have been recent requests by local governments to county tax assessor-collectors or the designated officer or employee of a taxing entity to update the truth in taxation worksheet after it has been adopted, usually when an error in originally completing the form is discovered. S.B. 2350 will codify that once the voter-approval tax rate is adopted by the taxing entity, that rate and the truth in taxation worksheets may not be changed or adjusted. S.B. 2350 seeks to clarify the process for completing truth in taxation worksheets and adopting the voter-approval tax rate. As proposed, S.B. 2350 amends current law relating to the voter-approval tax rate used to calculate the unused increment rate of a taxing unit for ad valorem tax purposes. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 26.013(a)(2), Tax Code, to provide that "voter-approval tax rate" means a taxing unit's voter-approval tax rate in the applicable preceding tax year, as adopted by the taxing unit during the applicable preceding tax year, less the unused increment rate for that preceding tax year. SECTION 2. Effective date: upon passage or September 1, 2023.
BILL ANALYSIS
Senate Research Center S.B. 2350
88R5838 RDS-D By: Bettencourt
Local Government
4/10/2023
As Filed
Senate Research Center
S.B. 2350
88R5838 RDS-D
By: Bettencourt
Local Government
4/10/2023
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The longstanding tradition for local governments is that once the property tax rate has been adopted, no changes can be made to the truth intaxation worksheets that are used to calculate the no-new-revenue rate and the voter-approval rate for that tax year. There have been recent requests by local governments to county tax assessor-collectors or the designated officer or employee of a taxing entity to update the truth in taxation worksheet after it has been adopted, usually when an error in originally completing the form is discovered. S.B. 2350 will codify that once the voter-approval tax rate is adopted by the taxing entity, that rate and the truth in taxation worksheets may not be changed or adjusted. S.B. 2350 seeks to clarify the process for completing truth in taxation worksheets and adopting the voter-approval tax rate.
As proposed, S.B. 2350 amends current law relating to the voter-approval tax rate used to calculate the unused increment rate of a taxing unit for ad valorem tax purposes.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 26.013(a)(2), Tax Code, to provide that "voter-approval tax rate" means a taxing unit's voter-approval tax rate in the applicable preceding tax year, as adopted by the taxing unit during the applicable preceding tax year, less the unused increment rate for that preceding tax year.
SECTION 2. Effective date: upon passage or September 1, 2023.