Texas House Bill HB9

Texas 2025 - 89th 1st C.S.

• Filed: 8/4/25

Caption

Relating to the calculation of the voter-approval tax rate for certain taxing units.

Impact

By modifying the calculation of the voter-approval tax rate, this bill has implications for how local governments levy taxes and the fiscal authority they exercise. Local taxing units will need to integrate the updated formula into their budgeting processes, which may lead to changes in revenue collection. Additionally, this bill could enhance transparency in tax assessments and foster better public understanding of tax increases and their justifications.

Summary

House Bill 9 focuses on the calculation of the voter-approval tax rate for certain taxing units, aiming to refine how local governments determine this rate. The definitions and formulas for both the 'no-new-revenue tax rate' and the 'voter-approval tax rate' have been adjusted to respond to the changing fiscal landscape and enable local governments to manage their taxation processes more efficiently. This bill proposes specific calculation methodologies depending on whether the unit is a special taxing unit or a municipality/county with a population of less than 75,000, ensuring that smaller local entities are accommodated within the proposed adjustments.

Contention

Discussion surrounding HB 9 may include points of contention regarding the fairness of the tax system and the burden placed on taxpayers, particularly in smaller municipalities. Stakeholders may argue over whether the proposed changes effectively balance the need for increased funding for local services against the potential for tax increases that could strain residents' finances. Furthermore, concerns may arise regarding the complexity of the new formulas and whether local tax authorities have the necessary resources and understanding to implement these changes accurately.

Texas Constitutional Statutes Affected

Tax Code

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