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A BILL TO BE ENTITLED
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AN ACT
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relating to the effect of the receipt by a municipality or county of |
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certain federal coronavirus relief money on the computation of |
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certain ad valorem tax rates of and the procedure for adoption of a |
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tax rate by the municipality or county. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 26, Tax Code, is amended by adding |
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Section 26.0445 to read as follows: |
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Sec. 26.0445. TEMPORARY TAX RATE ADJUSTMENT FOR CERTAIN |
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FEDERAL CORONAVIRUS RELIEF MONEY. (a) In this section: |
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(1) "2021 federal coronavirus relief money" means |
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money received by a municipality or a county in 2021 from the |
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Coronavirus Local Fiscal Recovery Fund (42 U.S.C. Section 803) |
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established under the American Rescue Plan Act of 2021 (Pub. L. |
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No. 117-2). |
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(2) "2022 federal coronavirus relief money" means |
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money received by a municipality or a county in 2022 from the |
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Coronavirus Local Fiscal Recovery Fund (42 U.S.C. Section 803) |
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established under the American Rescue Plan Act of 2021 (Pub. L. |
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No. 117-2). |
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(b) For the tax year beginning January 1, 2022, the |
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no-new-revenue tax rate and voter-approval tax rate for a |
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municipality or county are decreased by the rate computed according |
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to the following formula: |
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2021 Federal Coronavirus Relief Money / (Current Total |
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Value - New Property Value) |
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(c) For the tax year beginning January 1, 2023, the |
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no-new-revenue tax rate and voter-approval tax rate for a |
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municipality or county are decreased by the rate computed according |
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to the following formula: |
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(2022 Federal Coronavirus Relief Money - 2021 Federal |
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Coronavirus Relief Money) / (Current Total Value - New |
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Property Value) |
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(d) For the tax year beginning January 1, 2024, the |
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no-new-revenue tax rate and voter-approval tax rate for a |
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municipality or county are increased by the rate computed according |
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to the following formula: |
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[2021 Federal Coronavirus Relief Money + (2022 Federal |
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Coronavirus Relief Money - 2021 Federal Coronavirus |
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Relief Money)] / (Current Total Value - New Property |
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Value) |
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(e) For purposes of computing the rates under Subsections |
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(c) and (d), if the amount of 2022 federal coronavirus relief money |
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is less than the amount of 2021 federal coronavirus relief money, |
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the difference between those amounts is considered to be zero. |
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(f) The municipality or county shall include a notice of the |
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decrease or increase, as applicable, in the no-new-revenue tax rate |
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and voter-approval tax rate provided by this section, including a |
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description and the amount of 2021 or 2022 federal coronavirus |
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relief money, as applicable, in the information published under |
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Section 26.04(e) and, as applicable, in the notice prescribed by |
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Section 26.06 or 26.061. |
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(g) This section expires January 1, 2026. |
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SECTION 2. The change in law made by this Act applies to the |
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computation of the no-new-revenue tax rate and voter-approval tax |
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rate of a municipality or county beginning with the 2022 tax year. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect on the 91st day after the last day of the |
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legislative session. |