Texas Senate Bill SB45

Texas 2025 - 89th 1st C.S.

• Filed: 7/23/25

Caption

Relating to the dedication of money received from the federal government as reimbursement for border security costs for ad valorem tax relief.

Impact

The implementation of SB45 is expected to solidify fiscal strategies within the state law, particularly in relation to how funds from federal sources can be integrated into state budgetary frameworks. This bill will restrict the appropriations of these federal funds to ad valorem tax relief, thereby directly impacting local governments and taxpayers by potentially lowering property taxes. These changes are set to commence with the state fiscal year starting September 1, 2026, thus providing a timeline for state officials to adapt to the new funding strategies.

Summary

SB45 proposes a mechanism for dedicating funds received from the federal government as reimbursement for border security costs specifically for ad valorem tax relief. This bill aims to streamline the process by which these federal funds are allocated, emphasizing the importance of supporting local tax relief using federal resources. It mandates the state comptroller to determine the amount of federal reimbursements received and subsequently deposit an equivalent amount into a designated account in the general revenue fund, which can only be used for ad valorem tax relief purposes.

Contention

Notably, the discussion surrounding SB45 could focus on several contentious issues. Supporters argue that using federal funds for state tax relief addresses critical financial burdens on property owners and promotes economic stability through direct financial assistance. However, opponents might raise concerns that relying on federal reimbursements for local tax relief could lead to unpredictability in funding, potentially undermining long-term financial planning for state and local governments. There are also philosophical debates about the implications of federal funding influencing state tax policies, given the complexities of federal-state relations and local sovereignty.

Texas Constitutional Statutes Affected

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: New Section