According to the Legislative Budget Board (LBB), HB 17 is not expected to have a significant fiscal impact on the state. The bill primarily affects local governments by mandating new notice requirements related to property tax hearings. Specifically, school districts, water districts, and other taxing units would be required to mail property tax hearing notices directly to each property owner. These notices must include standardized, comparative data on past and projected tax collections, adjusted for enrollment and inflation.

The most direct fiscal implication falls on local taxing units, which would face increased printing and postage expenses due to the new requirement to mail notices to every property owner within their jurisdiction. While the bill permits newspaper publication as a supplemental method, it does not substitute for the mailed notices, ensuring that the increased costs are not avoidable through alternative publication methods.

Additionally, the bill imposes duties on the Comptroller of Public Accounts to annually calculate and publish the statewide inflation rate in the Texas Register, and requires appraisal districts to integrate prescribed comparative tax collection data into their online tax databases. These new responsibilities are not expected to significantly increase state expenditures, but may require modest administrative adjustments.

Overall, while HB 17 enhances fiscal transparency for taxpayers, its cost burden is anticipated to rest predominantly with local governments, especially school districts, due to the expanded notification mandates.

Texas Policy Research recommends that lawmakers vote YES on HB 17 based on its clear alignment with core liberty principles and its practical fiscal and governance impact. The bill enhances transparency in local property tax decisions by requiring school districts, taxing units, and water districts to provide mailed notices to every property owner. These notices must now include clear, comparative financial information based on inflation and either enrollment or population growth, depending on the type of taxing entity involved. The purpose of these reforms is to make it easier for taxpayers to assess whether proposed tax increases are justifiable or excessive, thereby improving public understanding and engagement in the tax-setting process.

From a liberty perspective, the bill empowers taxpayers with meaningful, standardized information. By requiring that notices disclose how much taxing entities would collect if revenue growth were limited to enrollment or inflation, HB 17 introduces a simple, intuitive benchmark against which proposed tax hikes can be judged. This approach not only supports individual liberty and private property rights by giving taxpayers actionable insight and recourse but also encourages limited government by discouraging unchecked local tax growth in low-participation environments.

Furthermore, HB 17 is administratively sound and imposes no significant fiscal burden on the state. While local taxing units will face increased postage and printing costs due to the mailing requirements, these are relatively modest compared to the civic value of increased public awareness and accountability. The bill also avoids creating or expanding any criminal penalties or regulatory burdens and requires no new rulemaking authority at the state level.

In summary, HB 17 advances the public interest by improving taxpayer communication, reinforcing fiscal discipline, and elevating public involvement in local tax policy.

• Individual Liberty: The bill empowers property owners with clear, accessible information about proposed local property tax rates. By requiring school districts and other taxing units to mail notices comparing proposed tax collections to a baseline adjusted for enrollment/population and inflation, the bill helps individuals make informed judgments about whether their tax burden is increasing fairly. This access to standardized data enhances citizen autonomy in tax-related decision-making and encourages more meaningful public participation in local governance.
• Personal Responsibility: The bill instills a greater sense of fiscal responsibility within local government entities. By compelling school boards and taxing authorities to clearly explain and justify proposed tax increases relative to objective growth metrics, the bill holds public officials accountable for the tax decisions they make. Taxing units must justify deviations from inflation-and population-aligned growth, promoting careful stewardship of taxpayer dollars and strengthening trust in local institutions.
• Free Enterprise: Although the bill does not directly impact private business operations, it enhances predictability and transparency in local taxation, a major concern for commercial property owners and investors. When property tax trends are clearly tied to measurable growth factors, businesses can better forecast costs and make sound investment decisions. This stability supports a healthier economic climate for entrepreneurship and long-term private enterprise.
• Private Property Rights: The bill bolsters property rights by introducing enforceable standards for transparency. Taxpayers have the legal right to seek an injunction if a school district fails to provide notice in compliance with the new requirements, offering a clear path for recourse. This shifts power back to the property owner, who might otherwise be subject to tax increases without adequate notice or explanation. It also reduces the risk of uninformed or unchecked tax hikes that could erode property value or affordability over time.
• Limited Government: By using enrollment, population, and inflation metrics as benchmarks for comparison, the bill introduces a subtle but powerful constraint on government growth. It does not limit a local government's ability to raise taxes, but it does require those decisions to be made with full transparency and public scrutiny. This encourages restraint and keeps public spending tied more closely to actual community growth, rather than bureaucratic expansion.