According to the Legislative Budget Board (LBB), HB 5447 is not expected to have a significant fiscal impact on the state. The bill primarily mandates changes to the tax rate calculation forms used by local taxing units, requiring them to include hyperlinks to supporting documentation and to account for reinvestment zones separately in their tax rate calculations. The Texas Comptroller will be responsible for updating the forms to comply with these new requirements.

For local governments, the bill is also not expected to result in significant fiscal implications. While local taxing entities will need to adjust their tax calculation processes to comply with the new rules, these changes are administrative in nature and do not impose new costs or revenue reductions. The requirement to separately calculate taxable property values and tax revenues for each reinvestment zone may require some additional administrative effort but is not expected to result in substantial financial burdens for local governments.

In summary, HB 5447 does not impose new costs on the state or local governments but does introduce procedural changes aimed at increasing transparency and accountability in property tax calculations​.

HB 5447 proposes enhanced transparency and accountability in the calculation of ad valorem (property) tax rates by requiring tax rate calculation forms to include hyperlinks to supporting documentation for each non-mathematical entry. This measure is intended to make it easier for taxpayers to verify the accuracy of tax assessments and for local governments to ensure compliance with existing tax laws. Additionally, the bill mandates that tax rate calculations for reinvestment zones be handled separately, ensuring that tax rate modifications related to tax increment financing (TIF) and economic development programs do not distort the overall tax rate calculations.

While HB 5447 is a positive step toward taxpayer transparency and local government accountability, it does not directly reduce property tax burdens—a major concern for Texas taxpayers.

Recommendation to Amend:

To strengthen the bill’s impact on taxpayer protections and limited government, the following amendments should be considered:

Ensure taxpayer accessibility: Mandate that tax calculation documents be publicly available on county and local government websites in a user-friendly format.

Include direct taxpayer benefits: Introduce measures to cap tax rate increases or provide additional public notices when tax rates are expected to rise due to reinvestment zone adjustments.

HB 5447 aligns well with transparency, personal responsibility, and government accountability principles. However, without stronger taxpayer protections or assistance in implementing new requirements, it risks adding bureaucratic complexity without providing substantial relief from high property taxes. For these reasons, Texas Policy Research recommends that lawmakers vote YES; Amend on HB 5447.

• Individual Liberty: HB 5447 enhances individual liberty by making property tax rate calculations more transparent and accessible through hyperlink-supported documentation. This empowers taxpayers with better information to understand and question how their tax rates are determined. However, it does not provide direct relief from the financial burdens of taxation, limiting its overall benefit to individual freedom.
• Personal Responsibility: The bill reinforces personal responsibility by holding both government officials and taxpayers accountable. Officials must now justify tax rate figures with verifiable documentation, reducing room for error or manipulation. Taxpayers, in turn, are better equipped to review and engage with their tax obligations, fostering a more informed and responsible citizenry.
• Free Enterprise: Businesses benefit from improved transparency, which helps them anticipate tax obligations and plan accordingly. However, the added administrative complexity required to comply with the bill’s mandates could lead to increased operational burdens on local governments, which might pass those costs or delays onto businesses, especially small enterprises.
• Private Property Rights: While HB 5447 does not infringe on private property rights, it stops short of enhancing them meaningfully. The bill provides clearer insight into how taxes on property are assessed, which supports property owners’ understanding of their obligations. Yet, without any cap or reduction in tax burdens, the core issue of excessive taxation on private property remains unaddressed.
• Limited Government: The bill supports limited government in principle by increasing transparency and constraining the discretion of tax authorities through standardized documentation. However, it imposes new procedural requirements that may expand administrative overhead at the local level. Without offsetting reforms to simplify or reduce government functions, it risks growing bureaucratic layers under the guise of transparency.

• SB 1023 (Same As)