Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB5444 by Troxclair (Relating to the authority of the governing body of a school district to adopt an ad valorem tax rate that exceeds the district's voter-approval tax rate.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would prohibit the governing body of a school district located in a disaster area from adopting a tax rate that exceeds the voter-approval tax rate without holding an election if, in that tax year, the governing body of the school district adopted a tax rate that exceeded the voter-approval tax rate, an election was held, and the proposition was not approved by the voters.
The bill would clarify that the governing body of a school district cannot adopt a tax rate above the voter-approval tax rate in response to funding needs associated with a disaster that occurred in the prior year if voters have already rejected such a rate at an election in the current tax year.
While this type of situation is likely uncommon, the voters' rejection in a previous election means the tax rate would be rolled back to the voter-approval tax rate (VATR) and the ISD would not receive additional enrichment yield that the higher rate (above the VATR) would have generated in the current year. As a result, there could be a collections loss to school districts. It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
The fiscal implications of the bill to independent school districts cannot be determined at this time.
Source Agencies:
304 Comptroller of Public Accounts, 701 Texas Education Agency