Texas House Bill HB187

Texas 2023 - 88th 3rd C.S.

• Filed: 10/19/23

Caption

Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.

Impact

If enacted, HB187 would significantly impact how school districts and local government entities calculate their no-new-revenue and voter-approval tax rates. The requirements for public notification and the election processes for approving tax rates would also be restructured to ensure tax burdens are communicated effectively, thereby empowering residents with the necessary information to make informed decisions. This could potentially lead to lower tax rates or more structured tax increases as local governing bodies would need to justify their tax rate proposals more clearly.

Summary

House Bill 187 (HB187) focuses on the modification of calculations associated with ad valorem tax rates imposed by taxing units in Texas. It aims to enhance the approval process for any proposed tax rates that exceed the established voter-approval tax rate. The bill outlines conforming changes necessary to ensure clarity and compliance across the various statutory provisions regulating tax rate adoption, consequently aiming to achieve greater transparency for taxpayers regarding potential tax increases.

Sentiment

The sentiment surrounding HB187 appears largely supportive among legislators advocating for more transparent fiscal practices in public taxation. Proponents argue that the bill is a step towards ensuring local governments can maintain voter confidence by promoting clear communication about tax implications. However, some critics express concerns that mandatory approval processes could inhibit local governments from effectively meeting funding needs, suggesting that the additional accountability might lead to delays in essential funding for public services.

Contention

Notable contention exists regarding the balance between ensuring taxpayer protection and allowing governmental flexibility. Advocates for taxpayer rights see the bill as a necessary reform to curb excessive taxation, while opponents argue that it could hinder the ability of governing entities to respond to financial needs rapidly. The bill specifically revises the statutes related to the voter-approval tax rate, potentially leading to contentious discussions in communities that may feel the impacts of new tax rate structures.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 26. Assessment
  • Section: 04
  • Section: New Section

• Chapter 31. Collections
  • Section: 12

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: 23601
  • Section: 108
  • Section: 107
  • Section: 236

Special District Local Laws Code

• Chapter 3828. Lake View Management And Development Districtin Henderson County
  • Section: 157

Education Code

• Chapter 45. School District Funds
  • Section: 0032