Texas Senate Bill SB3067

Texas 2025 - 89th Regular

• Filed: 5/9/25

Caption

Relating to restrictions on the use of certain ad valorem taxes and on the issuance of certain bonds supported by ad valorem taxes.

Impact

The bill's implementation could significantly affect local governance by curtailing the financial strategies that municipalities and counties currently employ to support their bond issuances. By limiting the use of ad valorem tax revenue, local governments might face challenges in financing projects that rely on these funds, potentially leading to delays in essential services and infrastructure development. This legislation aims to ensure fiscal responsibility and adherence to state guidelines regarding tax revenues, but may also constrain local fiscal flexibility.

Summary

Senate Bill 3067 seeks to impose restrictions on the use of certain ad valorem taxes and the issuance of bonds backed by these taxes. Specifically, the bill amends the Texas Tax Code and Government Code to prevent the use of maintenance and operations tax revenues from elections to repay public securities, particularly when these revenues are transferred to local government corporations. The intent is to create a more focused framework around how ad valorem tax revenues can be allocated and managed, ensuring that they are not diverted away from their intended purposes.

Contention

Discussion surrounding SB 3067 may involve debates over local control versus state mandates, as different stakeholders consider the appropriate balance between state oversight and local autonomy in financial matters. Proponents of the bill argue that it will prevent misuse of public funds and ensure that tax revenues are utilized as intended. However, critics could argue that the restrictions imposed by this bill would limit local governments' ability to adequately respond to community needs, especially when financing public projects.

Last_action

The latest action on SB 3067 was recorded on May 9, 2025, indicating ongoing efforts to move the bill through the legislative process.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 26. Assessment
  • Section: New Section

Government Code

• Chapter 1253. General Obligation Bonds Issued By Political Subdivisions
  • Section: New Section