SB 1

85(1) - 2017
Senate Committee on Government Reform, Select
House Ways and Means
Senate Committee on Government Reform, Select
House Ways and Means

Vote Recommendation

  • Neutral
  • Positive
  • Neutral
  • Positive
  • Neutral


Paul Bettencourt


Dennis Bonnen

Bill Caption

Relating to the calculation of the ad valorem rollback tax rate of a taxing unit and voter approval of a proposed tax rate that exceeds the rollback tax rate.

Fiscal Notes

From LBB: Estimated Two-year Net Impact to General Revenue Related Funds for SB1, Committee Report 2nd House, Substituted: an impact of $0 through the biennium ending August 31, 2019. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

SB 1 is a property tax reform act which would help reduce the rate of property tax growth across Texas and empower taxpayers to have a more significant voice in proposed property tax increases.

Most significantly this bill would reduce the rollback rate from eight percent to six percent in taxing units other than "small taxing units" and trigger an automatic ratification election if the rollback rate is exceeded in those taxing units.

The rollback rate would remain at eight percent in small taxing units. An automatic rollback election would not be triggered if a small taxing unit sets a tax rate that exceeds the rollback rate, however taxpayers would be able to trigger an election by petition. 

This bill would improve tax rate transparency by requiring proposed tax rate information to be more accessible to taxpayers and by affording more opportunities for taxpayers to speak into the process before the adoption of new tax rates.

This bill would define a "small taxing unit" as a taxing unit other than a school district, for which the maintenance and operations tax rate proposed for the current tax year is two cents or less per $100 of taxable value; or would impose taxes of $25 million or less when applied to the current total value for the taxing unit; or is a junior college district.

Vote Recommendation Notes

By increasing transparency in property taxation, making it more difficult to raise property taxes without property owner support, lowering the rollback rate, and giving better recourse to taxpayers this bill supports property rights and limited government. For these reasons we support SB 1.