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Relating to the definition of debt for the purposes of calculating
certain ad valorem tax rates of a taxing unit.
No fiscal implication to the State is anticipated.
HB 1869 would require a taxing entity to calculate property tax rates using only debt that was approved at an election and is payable solely from property taxes when calculating tax rates, as opposed to being able to include all debt regardless of whether it had been approved at an election or not. HB 1869 redefines and clarifies the definition of "debt" for purposes of calculating property tax rates.
HB 1869 seeks to limit a taxing entity's ability to use non-voter approved debt, such as certificates of obligation which can be issued without voter approval, when determining the current debt rate calculation. This calculation is used to set property tax rates. By excluding non-voter approved debt in the debt rate calculation, taxpayers are provided greater protection from the tax entity's ability to overspend.
Texas Action supports HB 1869 for increasing property rights and limiting government.