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: SB977 by Bettencourt (Relating to the definition of debt for the purposes of calculating certain ad valorem tax rates of a taxing unit.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapter 26 of the Tax Code to require an election prior to the issuance of new debt. The bill would redefine debt per criteria specified in the bill.The bill would repeal Sections 26.012(9), (18-a), and (18-b) of the Tax Code.The bill would change the definition of debt and require an election before a taxing unit can issue new debt and potentially increase its interest and sinking (I&S) tax rate. To the extent voters do not approve bond issues/debt at an election, taxing units would be unable to issue additional debt backed by property tax revenue.The amount and frequency that taxing units would have issued future debt obligations for purposes no longer available without an election is unknown. The fiscal impact on taxing units cannot be estimated. Local Government ImpactThe amount and frequency that taxing units would have issued future debt obligations for purposes no longer available without an election is unknown. The fiscal impact on taxing units cannot be estimated. 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: SB977 by Bettencourt (Relating to the definition of debt for the purposes of calculating certain ad valorem tax rates of a taxing unit.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB977 by Bettencourt (Relating to the definition of debt for the purposes of calculating certain ad valorem tax rates of a taxing unit.), 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
SB977 by Bettencourt (Relating to the definition of debt for the purposes of calculating certain ad valorem tax rates of a taxing unit.), As Introduced
SB977 by Bettencourt (Relating to the definition of debt for the purposes of calculating certain ad valorem tax rates of a taxing unit.), 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 require an election prior to the issuance of new debt. The bill would redefine debt per criteria specified in the bill.The bill would repeal Sections 26.012(9), (18-a), and (18-b) of the Tax Code.The bill would change the definition of debt and require an election before a taxing unit can issue new debt and potentially increase its interest and sinking (I&S) tax rate. To the extent voters do not approve bond issues/debt at an election, taxing units would be unable to issue additional debt backed by property tax revenue.The amount and frequency that taxing units would have issued future debt obligations for purposes no longer available without an election is unknown. The fiscal impact on taxing units cannot be estimated.
The amount and frequency that taxing units would have issued future debt obligations for purposes no longer available without an election is unknown. The fiscal impact on taxing units cannot be estimated.
Local Government Impact
The amount and frequency that taxing units would have issued future debt obligations for purposes no longer available without an election is unknown. The fiscal impact on taxing units cannot be estimated.
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