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Relating to the alternate provisions for ad valorem tax rate
notices when the de minimis rate of a taxing unit exceeds the
voter-approval tax rate.
No fiscal implication to the State is anticipated.
HB 2429 would require that in certain taxing units that are not required to hold an election to change tax rates, the following definitions be added to the notice provided by the taxing entity:
"The voter-approval tax rate is the highest tax rate that (name of taxing unit) may adopt without holding an election to seek voter approval of the rate, unless the de minimis rate for (name of taxing unit) exceeds the voter-approval tax rate for (name of taxing unit)."
"The de minimis rate is the rate equal to the sum of the no-new-revenue maintenance and operations rate for (name of taxing unit), the rate that will raise $500,000, and the current debt rate for (name of taxing unit)."
Pending election, "The proposed tax rate is greater than the voter-approval tax rate but not greater than the de minims rate and does not exceed the rate that allows voters to petition for an election. If (name of taxing unit) adopts the proposed tax rate, (name of taxing unit) is not required to hold an election so that the voters may accept or reject the proposed tax rate and the qualified voters of the (nam of taxing unit) may not petition the (name of taxing unit) to require an election to be held to determine whether to reduce the proposed tax rate."
Texas Action supports HB 2429 because the required notices would create greater transparency in government with respect to taxing units in which an election is not required to be held to change tax rates.