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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of the ad valorem tax rate of a taxing |
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unit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.04(c), Tax Code, is amended to read as |
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follows: |
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(c) After the assessor for the taxing unit submits the |
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appraisal roll for the taxing unit to the governing body of the |
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taxing unit as required by Subsection (b), an officer or employee |
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designated by the governing body shall calculate the no-new-revenue |
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tax rate and the voter-approval tax rate for the taxing unit, where: |
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(1) "No-new-revenue tax rate" means a rate expressed |
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in dollars per $100 of taxable value calculated according to the |
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following formula: |
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NO-NEW-REVENUE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY |
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LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE) |
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; and |
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(2) "Voter-approval tax rate" means a rate expressed |
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in dollars per $100 of taxable value calculated according to the |
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following applicable formula: |
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(A) for a special taxing unit: |
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VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND |
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OPERATIONS RATE x 1.08) + CURRENT DEBT RATE |
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; or |
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(B) for a taxing unit other than a special taxing |
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unit: |
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VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND |
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OPERATIONS RATE x 1.035) + [(]CURRENT DEBT RATE [+ UNUSED INCREMENT |
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RATE)] |
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SECTION 2. Sections 26.041(a), (b), and (c), Tax Code, are |
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amended to read as follows: |
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(a) In the first year in which an additional sales and use |
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tax is required to be collected, the no-new-revenue tax rate and |
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voter-approval tax rate for the taxing unit are calculated |
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according to the following formulas: |
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NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY |
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LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN |
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RATE |
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and |
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VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = |
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(NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x 1.08) + (CURRENT |
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DEBT RATE - SALES TAX GAIN RATE) |
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or |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL |
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TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x |
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1.035) + (CURRENT DEBT RATE [+ UNUSED INCREMENT RATE] - SALES TAX |
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GAIN RATE) |
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where "sales tax gain rate" means a number expressed in dollars per |
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$100 of taxable value, calculated by dividing the revenue that will |
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be generated by the additional sales and use tax in the following |
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year as calculated under Subsection (d) by the current total value. |
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(b) Except as provided by Subsections (a) and (c), in a year |
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in which a taxing unit imposes an additional sales and use tax, the |
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voter-approval tax rate for the taxing unit is calculated according |
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to the following formula, regardless of whether the taxing unit |
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levied a property tax in the preceding year: |
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VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = [(LAST |
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YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / (CURRENT TOTAL |
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VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX |
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REVENUE RATE) |
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or |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL |
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TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x |
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1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT |
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RATE [+ UNUSED INCREMENT RATE] - SALES TAX REVENUE RATE) |
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where "last year's maintenance and operations expense" means the |
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amount spent for maintenance and operations from property tax and |
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additional sales and use tax revenues in the preceding year, and |
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"sales tax revenue rate" means a number expressed in dollars per |
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$100 of taxable value, calculated by dividing the revenue that will |
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be generated by the additional sales and use tax in the current year |
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as calculated under Subsection (d) by the current total value. |
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(c) In a year in which a taxing unit that has been imposing |
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an additional sales and use tax ceases to impose an additional sales |
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and use tax, the no-new-revenue tax rate and voter-approval tax |
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rate for the taxing unit are calculated according to the following |
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formulas: |
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NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY |
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LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS |
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RATE |
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and |
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VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = [(LAST |
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YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / (CURRENT TOTAL |
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VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE |
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or |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL |
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TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x |
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1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + [(]CURRENT |
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DEBT RATE [+ UNUSED INCREMENT RATE)] |
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where "sales tax loss rate" means a number expressed in dollars per |
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$100 of taxable value, calculated by dividing the amount of sales |
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and use tax revenue generated in the last four quarters for which |
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the information is available by the current total value and "last |
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year's maintenance and operations expense" means the amount spent |
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for maintenance and operations from property tax and additional |
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sales and use tax revenues in the preceding year. |
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SECTION 3. Sections 49.23602(a)(2) and (4), Water Code, are |
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amended to read as follows: |
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(2) "Mandatory tax election rate" means [the rate |
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equal to the sum of the following tax rates for the district: |
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[(A)] the rate that would impose 1.035 times the |
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amount of tax imposed by the district in the preceding year on a |
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residence homestead appraised at the average appraised value of a |
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residence homestead in the district in that year, disregarding any |
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homestead exemption available only to disabled persons or persons |
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65 years of age or older[; and |
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[(B) the unused increment rate]. |
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(4) "Voter-approval tax rate" means the rate equal to |
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the sum of the following tax rates for the district: |
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(A) the current year's debt service tax rate; |
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(B) the current year's contract tax rate; and |
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(C) the operation and maintenance tax rate that |
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would impose 1.035 times the amount of the operation and |
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maintenance tax imposed by the district in the preceding year on a |
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residence homestead appraised at the average appraised value of a |
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residence homestead in the district in that year, disregarding any |
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homestead exemption available only to disabled persons or persons |
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65 years of age or older[; and |
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[(D) the unused increment rate]. |
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SECTION 4. The following provisions are repealed: |
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(1) Section 120.007(d), Local Government Code; |
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(2) Section 26.013, Tax Code; |
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(3) Section 26.0501(c), Tax Code; and |
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(4) Section 49.23602(a)(3), Water Code. |
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SECTION 5. This Act applies only to ad valorem taxes imposed |
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for an ad valorem tax year that begins on or after the effective |
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date of this Act. |
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SECTION 6. This Act takes effect January 1, 2024. |