LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 13, 2025 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1449 by Bettencourt (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.), As Introduced Passage of the bill would prohibit school districts from adopting a tax rate with disaster pennies without a voter-approval tax rate election. As a result, state costs to the Foundation School Fund could be reduced. The bill would repeal the authority of certain taxing units to adopt a property tax rate that exceeds the voter-approval tax rate without holding an election in the year after a disaster occurred. The bill makes conforming changes.The bill would prohibit school districts from adopting a tax rate with disaster pennies without a voter-approval tax rate election (VATRE) for the current tax year. If the VATRE does not pass, districts could receive less tier two tax collections and would not receive additional tier two funding under the Foundation School Program, which could result in a savings to the state. Local Government ImpactPassage of the bill would prohibit local governments in a disaster area from adopting a tax rate that exceed the voter-approval tax rate without holding an election in the year after a disaster occurred. As a result, local tax revenue for local governments in disaster areas could be reduced. Source Agencies: b > td > 304 Comptroller of Public Accounts, 701 Texas Education Agency LBB Staff: b > td > JMc, SZ, KK, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 13, 2025
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1449 by Bettencourt (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.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1449 by Bettencourt (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.), As Introduced
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1449 by Bettencourt (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.), As Introduced
SB1449 by Bettencourt (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.), As Introduced
Passage of the bill would prohibit school districts from adopting a tax rate with disaster pennies without a voter-approval tax rate election. As a result, state costs to the Foundation School Fund could be reduced.
Passage of the bill would prohibit school districts from adopting a tax rate with disaster pennies without a voter-approval tax rate election. As a result, state costs to the Foundation School Fund could be reduced.
The bill would repeal the authority of certain taxing units to adopt a property tax rate that exceeds the voter-approval tax rate without holding an election in the year after a disaster occurred. The bill makes conforming changes.The bill would prohibit school districts from adopting a tax rate with disaster pennies without a voter-approval tax rate election (VATRE) for the current tax year. If the VATRE does not pass, districts could receive less tier two tax collections and would not receive additional tier two funding under the Foundation School Program, which could result in a savings to the state.
Local Government Impact
Passage of the bill would prohibit local governments in a disaster area from adopting a tax rate that exceed the voter-approval tax rate without holding an election in the year after a disaster occurred. As a result, local tax revenue for local governments in disaster areas could be reduced.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 701 Texas Education Agency
304 Comptroller of Public Accounts, 701 Texas Education Agency
LBB Staff: b > td > JMc, SZ, KK, BRI
JMc, SZ, KK, BRI