BILL ANALYSIS

H.B. 2429

By: Meyer

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Concerns have been raised regarding the existing notices of public hearings on property tax rate increases. It has been reported that these notices do not adequately address a situation in which a taxing unit exceeds the voter-approval tax rate but does not exceed either the de minimis rate or the voter-approval tax rate calculated as if the taxing unit were a special taxing unit. H.B. 2429 seeks to ensure taxing units provide accurate property tax rate notices by creating alternate notice provisions applicable to this situation.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2429 amends the Tax Code to require a taxing unit that is not required to hold an election to approve a property tax increase and whose qualified voters may not petition to hold an election to reduce an adopted tax rate to do the following with respect to a notice of public hearing on a tax increase:

· add the de minimis rate per $100 to the end of the list of rates included in the notice;

· substitute certain specified language for the definition of "voter-approval tax rate";

· add a certain definition of "de minimis rate"; and

· substitute certain specified language for the provision that provides notice that an election is required that indicates that an election is not required and that the voters may not petition to hold an election.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2021.