Texas Senate Bill SB2684

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to a requirement that a bill for ad valorem taxes imposed by a taxing unit include certain information about bonds issued by the taxing unit.

Impact

The implications of SB2684 are significant, particularly regarding state taxation law and taxpayer awareness. By mandating that taxing units disclose specific bond information on tax bills, the bill seeks to mitigate the obscurity surrounding local government debt. Property owners will gain insights into which portions of their taxes are earmarked for bond repayment, potentially leading to better-informed decisions regarding their financial responsibilities. The change will become effective starting September 1, 2025, applying to all tax bills sent out after this date.

Summary

SB2684 is a legislative proposal aimed at enhancing transparency in the administration of ad valorem taxes by requiring taxing units to include critical information about their outstanding bonds on tax bills. The bill stipulates that the assessor-collector must list each outstanding bond on the reverse side of tax bills or in an accompanying statement. Furthermore, for each bond, the maturity date must be provided, alongside a note indicating if the bond will be fully paid within the current tax year. This effort aims to equip property owners with a clearer understanding of their tax obligations, especially those linked to municipal debt.

Contention

While the intention behind SB2684 is to promote transparency, the requirement may also raise concerns among taxing units that might find the additional disclosure burdensome. Critics might argue that the administrative efforts needed to implement these changes could lead to increased costs for the taxing units, which could ultimately be passed on to taxpayers. Moreover, there may be differing opinions on the effectiveness of such measures in truly enhancing taxpayer understanding or engagement, with some suggesting that more comprehensive education about municipal finances is also needed.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 31. Collections
  • Section: 01