Amendment 4 - State Representative Hochberg's Guide to the 2011 Texas Constitutional Amendments

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Proposition 4

The ballot will read: The constitutional amendment authorizing the legislature to permit a county to issue bonds or notes to finance the development or redevelopment of an unproductive, underdeveloped, or blighted area and to pledge for repayment of the bonds or notes increases in ad valorem taxes imposed by the county on property in the area. The amendment does not provide authority for increasing ad valorem tax rates.

Background: Texas cities can issue redevelopment bonds for improving underproductive, underdeveloped or blighted areas. The funds from the bonds typically are used to improve roads, add drainage and green space, and make other improvements to encourage developers to redevelop the area. This particular type of bond is repaid from the additional property taxes that the city collects as property values in the area rise because of the redevelopment, without increasing the local tax rate.

Counties currently do not have the authority to issue such bonds, so areas outside of city limits cannot be redeveloped in the same manner. Proposition 4 would allow counties to do what cities currently can do.

For: This process has worked successfully to redevelop areas within cities, and areas outside city limits should have access to this important tool. This provides a way to allow the benefit brought by the improved infrastructure to help pay for that infrastructure, without raising tax rates.

Against: This process restricts the taxes collected on the increased values in the redevelopment area to being used just for that area, and prevents their use to benefit the entire county. If the county can’t count on the revenue from increased values throughout the county to fund needed services, ongoing improvements in other areas of the county will suffer.

For the exact wording of the changes to the Constitution
that would occur if this proposition passes,
CLICK HERE.
Words to be added to the Constitution will be underlined.
Words to be removed, if any, will be [~~struck through~~].

For a more detailed analysis of this proposition
from the House Research Organization,
CLICK HERE.

For the full House Research Organization report
on all of the propositions,
CLICK HERE.

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