LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 22, 2025 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1453 by Bettencourt (Relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), As Introduced No significant fiscal implication to the State is anticipated. The bill would define current debt service (for the purpose of calculating the current debt rate of a taxing unit) as meaning the minimum dollar amount required to be expended for debt service for the current year.The bill would add requirements concerning the governing body of a taxing unit and the conditions needed to approve a debt tax rate that exceeds the minimum debt tax rate for the taxing unit. If such a debt rate were to be adopted, the designated officer or employee would recalculate the voter-approval tax rate to account for the new current debt rate for that year.The bill would amend a current law definition which now reads, Current debt means debt service for the current year. The result could be to require some taxing units to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law. Local Government ImpactThe bill could result in some taxing units being required to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, SZ, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 22, 2025
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1453 by Bettencourt (Relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1453 by Bettencourt (Relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), 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
SB1453 by Bettencourt (Relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), As Introduced
SB1453 by Bettencourt (Relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would define current debt service (for the purpose of calculating the current debt rate of a taxing unit) as meaning the minimum dollar amount required to be expended for debt service for the current year.The bill would add requirements concerning the governing body of a taxing unit and the conditions needed to approve a debt tax rate that exceeds the minimum debt tax rate for the taxing unit. If such a debt rate were to be adopted, the designated officer or employee would recalculate the voter-approval tax rate to account for the new current debt rate for that year.The bill would amend a current law definition which now reads, Current debt means debt service for the current year. The result could be to require some taxing units to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law.
Local Government Impact
The bill could result in some taxing units being required to adopt a lower tax rate, and to continue payments of debt for a longer period, than they would under current law.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, SZ, SD, BRI
JMc, SZ, SD, BRI