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Senate Bill 1999 |
Senate Author: Bettencourt |
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Effective: 1-1-24 |
House Sponsor: Hefner |
The current formula for calculating a taxing unit's unused increment rate for property tax purposes is the sum of the year one voter‑approval tax rate less the year one actual tax rate, the year two voter‑approval tax rate less the year two actual tax rate, and the year three voter‑approval tax rate less the year three actual tax rate. Senate Bill 1999 amends the Tax Code to replace the current formula with a new formula, which is the sum of the year one foregone revenue amount, year two foregone revenue amount, and year three foregone revenue amount divided by the current total value. For this purpose, "foregone revenue amount" means the greater of zero or the amount expressed in dollars calculated according to the following formula: the voter‑approval tax rate less the actual tax rate, then multiplied by the taxing unit's current total value in the applicable preceding tax year.