Texas House Bill HB47

Texas 2025 - 89th 1st C.S.

• Filed: 7/14/25

Caption

Relating to municipal and county ad valorem tax relief.

Impact

If enacted, HB 47 would significantly alter how municipalities and counties manage their fiscal resources, necessitating careful calculation of surplus revenue while ensuring that a portion is allocated to tax relief measures. This amendment to the Local Government Code would lead to a reassessment of local tax strategies and may influence budgeting processes. Furthermore, it sets a legal precedent in which surplus funds must be transparently directed towards reducing tax obligations for property owners, ultimately impacting state revenue collection dynamics.

Summary

House Bill 47 focuses on providing ad valorem tax relief to municipalities and counties by mandating the use of surplus revenue generated in the previous fiscal year for property tax reduction. The bill stipulates that local governments must utilize any surplus revenue accrued beyond their previous budget, adjusted for inflation and population growth, specifically for tax relief purposes. This approach aims to alleviate the tax burden on property owners while promoting more responsible fiscal practices among local governments.

Contention

While HB 47 has garnered support for its potential to provide tax relief, it has sparked debate regarding its implications on local autonomy and financial flexibility. Critics argue that imposing restrictions on how surplus revenues are managed may inhibit local governments from responding to their unique budgetary needs. Opponents fear that the bill may prioritize tax relief over crucial funding for public services, which could lead to unintended consequences for community programs and infrastructure improvements.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 140. Miscellaneous Financial Provisions Affecting Municipalities, Counties, And Other Local Governments
  • Section: New Section

Tax Code

• Chapter 26. Assessment
  • Section: New Section