Texas 2025 - 89th Regular

Texas House Bill HB1131

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the repeal of provisions authorizing certain taxing units in the year following the year in which a disaster occurs to adopt an ad valorem tax rate that exceeds the voter-approval tax rate without holding an election to approve the adopted tax rate; making conforming changes.

Impact

The repeal of these provisions will have far-reaching implications on state tax laws. Specifically, it would place restrictions on the taxing autonomy of units in disaster areas, thereby potentially slowing down their ability to respond financially to recovery needs. The bill creates a structure where taxpayer consent would be mandated for any tax increases beyond certain approved thresholds, fostering a greater sense of community involvement in financial decisions that directly affect them.

Summary

House Bill 1131 proposes to repeal certain provisions that currently allow specific taxing units to adopt an ad valorem tax rate exceeding the voter-approval tax rate in the year following a disaster without requiring an election. The necessity of this change stems from the concern that such provisions may lead to unaccountable increases in tax rates following disasters, potentially impacting affected communities significantly. This bill aims to ensure greater transparency and accountability in taxation processes, requiring that any exceedance of the voter-approval tax rate must be validated through an electoral process.

Contention

Discussions surrounding HB1131 highlight a tension between the need for immediate fiscal response in the wake of disasters and the process of obtaining taxpayer approval for tax increases. Proponents of the bill argue that it reinforces the democratic process by ensuring that taxpayers have a voice in tax decisions, while opponents contend that it may hinder swift financial recovery efforts following disasters. The balance between rapid support for communities recovering from disasters and maintaining democratic oversight in tax increases is a central point of contention in discussions about this bill.

Texas Constitutional Statutes Affected

Education Code

  • Chapter 45. School District Funds
    • Section: 0032

Tax Code

  • Chapter 26. Assessment
    • Section: New Section

Companion Bills

TX HB763

Same As Relating to the repeal of provisions authorizing certain taxing units in the year following the year in which a disaster occurs to adopt an ad valorem tax rate that exceeds the voter-approval tax rate without holding an election to approve the adopted tax rate; making conforming changes.

TX SB1449

Identical Relating to the effect of a disaster and associated costs to remove debris or wreckage on the calculation of certain tax rates and the procedure for adoption of a tax rate by a taxing unit.

TX HB30

Same As Relating to the effect of a disaster and associated costs on the calculation of certain tax rates and the procedure for adoption of a tax rate by a taxing unit.

Previously Filed As

TX HB2220

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.

TX HB17

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.

TX HB14

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.

TX HB187

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.

TX HB188

Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.

TX HB2221

Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.

TX HB15

Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.

TX HB12

Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.

TX HB1818

Relating to the calculation of the voter-approval tax rate of certain counties and the procedure for the adoption by such a county of a tax rate that exceeds that rate; making conforming changes.

TX SB1324

Relating to the effect of an election at which the voters fail to approve or vote to reduce the ad valorem tax rate adopted by the governing body of a taxing unit.

Similar Bills

No similar bills found.