HB 506 targets 57 ISDs which are fast growth
Texas Insider Report: AUSTIN Texas State Rep. Eddie Rodriguez (D-Austin) announced he has filed
his first batch of bills for
the 84th Legislative Session that begins in January focusing on property tax and public education policy initiatives.
HB 490 would permit local governments to adopt a percentage homestead exemption (tax cut) limit as an alternative to the percentage homestead exemption currently permitted. The bill is contingent on voter approval of a constitutional amendment permitting such an exemption.
HJR 57 would amend the Constitution to authorize governing bodies that adopt tax cuts of a percentage of market values of an individuals residence homestead to be able to set limits on the dollar amount of the exemption to which an individual is entitled to in a tax year.
A limited exemption directs more of the benefits to all homeowners as a fair way to reduce property taxes for homeowners. This increases the flexibility of local governments to use the homestead exemption as a way to provide property tax cuts to citizens. It also affords local governments better control over the amount of revenue foregone.
Another bill to be filed tomorrow will remove future estimated tax appraisals from appraisal notices. These estimates on the appraisal notice are rarely accurate since the previous years tax rate must be used. Moreover the presence of these estimates focuses taxpayer complaints at the appraisal district rather than at the taxing units that establish the budget and set the tax rate.
Last session the Texas Legislature overwhelmingly passed HB 5 a bill that allows high school students to choose their pathway to post-secondary readiness. High school students enrolled in dual credit courses may earn credit toward a high school diploma and an associates degree at a community college. While students attending an Early College High School may take an unlimited number of dual credit courses students at a traditional high school may only take two dual credit courses per semester. HB 505 removes the limit on the number of dual credit courses allowing students to better prepare themselves for college and their career.
HB 506 seeks to amend the 50 cent debt test to make it more efficient and return decision-making to the local taxpayers. Established in 1991 the law states the rate for debt service payments for any school district cannot exceed $0.50 per $100 to pay off a bond.
This threshold cap is arbitrary as it fails to account for the 80000 new students that enter public schools every year. More importantly it ignores the local taxpayers wishes seeking to invest in quality school buildings. The law is also now inefficient and punitive as districts cannot pay off a bond sooner because the cap leads to a longer repayment period and higher interest rates.
HB 506 targets 57 ISDs which are fast growth and within five cents of the cap. These fast-growth ISDs shall adopt a capital improvement plan must demonstrate they are efficient with their dollars and must demonstrate a savings in their plan.
