TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways & Means |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB879 by Madden (Relating to the sale of tax receivables by a local government.), As Introduced |
The bill would authorize a county, municipality, school district, special purpose district or authority, or other political subdivision of the state to, at any time, sell all or any part of its tax receivables, including an undivided interest in all or any part of the receivables. The bill would establish the procedures for selling tax receivables, would identify what would be included in the amount of tax receivables sold, would allow the entity to recover court costs and other related expenses in a suit to collect delinquent taxes after the date of sale of a delinquent ad valorem tax receivable, would identify prohibitions under the authorization to sell a tax receivable, and would identify associated financial duties of the local government entity.
In calculating an effective tax rate and a rollback rate of a local government under Section 26.04(c) of the Tax Code, provisions of the bill would not allow inclusion of proceeds received from the sale of a tax receivable. Further, the sale by a school district of an ad valorem tax receivable would not effect the allocation of state or federal funds to the school district or the entitlement of the school district to state or federal funds under the Education Code or the taxable value of property in the district for the purposes of allocation or entitlement to those funds.
The bill would take effect immediately if it receives the required two-thirds vote in each house; otherwise, it would take effect September 1, 2005.
Source Agencies: |
LBB Staff: | JOB, WP, SD, DLBa
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