Texas House Bill HB119

Texas 2025 - 89th 1st C.S.

• Filed: 7/17/25

Caption

Relating to requiring voter approval for certain local tax rate increases adopted pursuant to a disaster declaration.

Impact

The introduction of HB 119 is significant as it reinforces the necessity for voter engagement in decisions related to local tax increases triggered by emergencies or disasters. This requirement shifts a degree of fiscal authority back to the electorate, providing citizens with a direct voice regarding taxation linked to disaster management and recovery efforts. As such, the legislation may influence how local governments strategize their financial planning and disaster response initiatives, potentially leading to more conservative fiscal approaches in the face of emergencies.

Summary

House Bill 119 mandates voter approval for certain local tax rate increases that are adopted due to disaster declarations. Specifically, it applies to taxing units, excluding school districts, that utilize the 8% voter-approved rate calculation in the aftermath of a disaster. The bill stipulates that any increase in tax rates achieved through this calculation can only be maintained for a maximum of 30 days without securing voter backing through an election. If no election occurs or the increased rate does not gain approval within this window, the tax rate will revert to its prior level before the disaster.

Contention

Notably, the bill may lead to contention between local governments and taxpayers. Proponents may argue that requiring voter approval insures transparency and accountability, protecting citizens from potential tax increases without their consent. However, opponents might contend that this requirement could hinder the ability of local governments to respond swiftly to disasters by thus delaying necessary funding for recovery. Additionally, there may be concerns regarding the logistical implications of conducting frequent elections in response to ongoing or immediate disaster situations, which could complicate timely local tax responses.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 26. Assessment
  • Section: New Section