Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1999 by Bettencourt (Relating to the calculation of the unused increment rate of a taxing unit.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend Chapter 26 of the Tax Code, relating to Assessment, to revise the calculation of the unused increment rate of a taxing unit, as well as provide definitions for the terms foregone revenue amount and preceding total value. The change in the calculation of the unused increment rate may result in a reduction of the total unused increment rate when compared to the current calculation. The unused increment rate is a component of the voter-approval tax rate under Section 26.04 of the Tax Code.
Local Government Impact
Passage of the bill could reduce the unused increment rate that is used to calculate the voter-approval tax rate. As a result, voter-approval tax rates could be reduced, which could result in a reduction in the amount of ad valorem tax revenue a unit of local government could generate without voter approval.