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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 voter-approval tax rate of |
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certain counties and the procedure for the adoption by such a county |
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of a tax rate that exceeds that rate; making conforming changes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.012(19), Tax Code, is amended to read |
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as follows: |
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(19) "Special taxing unit" means: |
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(A) a taxing unit, other than a school district |
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or a county with a population of 500,000 or more, for which the |
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maintenance and operations tax rate proposed for the current tax |
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year is 2.5 cents or less per $100 of taxable value; |
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(B) a junior college district; or |
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(C) a hospital district. |
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SECTION 2. 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 |
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PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY |
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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 |
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AND 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 or a county with a population of 500,000 or more: |
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VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE |
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AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + |
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UNUSED INCREMENT RATE) |
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; or |
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(C) for a county with a population of 500,000 or |
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more: |
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VOTER-APPROVAL TAX RATE = NO-NEW-REVENUE MAINTENANCE |
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AND OPERATIONS RATE + CURRENT DEBT RATE |
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SECTION 3. 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 |
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PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY |
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VALUE)] - SALES TAX GAIN 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 |
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1.08) + (CURRENT DEBT RATE - SALES TAX GAIN RATE) |
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; [or] |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN |
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SPECIAL TAXING UNIT OR COUNTY WITH POPULATION OF |
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500,000 OR MORE = (NO-NEW-REVENUE MAINTENANCE AND |
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OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + UNUSED |
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INCREMENT RATE - SALES TAX GAIN RATE) |
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; or |
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VOTER-APPROVAL TAX RATE FOR COUNTY WITH POPULATION OF |
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500,000 OR MORE = NO-NEW-REVENUE MAINTENANCE AND |
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OPERATIONS RATE + (CURRENT DEBT RATE - SALES TAX GAIN |
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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 = |
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[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x |
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1.08) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + |
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(CURRENT DEBT RATE - SALES TAX REVENUE RATE) |
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; [or] |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN |
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SPECIAL TAXING UNIT OR COUNTY WITH POPULATION OF |
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500,000 OR MORE = [(LAST YEAR'S MAINTENANCE AND |
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OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE - |
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NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED |
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INCREMENT RATE - SALES TAX REVENUE RATE) |
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; or |
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VOTER-APPROVAL TAX RATE FOR COUNTY WITH POPULATION OF |
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500,000 OR MORE = [LAST YEAR'S MAINTENANCE AND |
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OPERATIONS EXPENSE / (CURRENT TOTAL VALUE - NEW |
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PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX |
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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 |
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PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY |
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VALUE)] + SALES TAX LOSS RATE |
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; and |
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VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = |
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[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x |
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1.08) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + |
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CURRENT DEBT RATE |
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; [or] |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN |
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SPECIAL TAXING UNIT OR COUNTY WITH POPULATION OF |
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500,000 OR MORE = [(LAST YEAR'S MAINTENANCE AND |
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OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE - |
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NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED |
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INCREMENT RATE) |
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; or |
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VOTER-APPROVAL TAX RATE FOR COUNTY WITH POPULATION OF |
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500,000 OR MORE = [LAST YEAR'S MAINTENANCE AND |
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OPERATIONS EXPENSE / (CURRENT TOTAL VALUE - NEW |
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PROPERTY VALUE)] + CURRENT DEBT RATE |
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where "sales tax loss rate" means a number expressed in |
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dollars per $100 of taxable value, calculated by dividing the |
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amount of sales and use tax revenue generated in the last four |
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quarters for which the information is available by the current |
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total value and "last year's maintenance and operations expense" |
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means the amount spent for maintenance and operations from property |
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tax and additional sales and use tax revenues in the preceding year. |
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SECTION 4. Section 26.042(a), Tax Code, is amended to read |
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as follows: |
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(a) Notwithstanding Sections 26.04 and 26.041, the |
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governing body of a taxing unit other than a school district, [or] a |
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special taxing unit, or a county with a population of 500,000 or |
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more may direct the designated officer or employee to calculate the |
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voter-approval tax rate of the taxing unit in the manner provided |
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for a special taxing unit if any part of the taxing unit is located |
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in an area declared a disaster area during the current tax year by |
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the governor or by the president of the United States and at least |
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one person is granted an exemption under Section 11.35 for property |
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located in the taxing unit. The designated officer or employee |
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shall continue calculating the voter-approval tax rate in the |
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manner provided by this subsection until the earlier of: |
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(1) the first tax year in which the total taxable value |
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of property taxable by the taxing unit as shown on the appraisal |
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roll for the taxing unit submitted by the assessor for the taxing |
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unit to the governing body exceeds the total taxable value of |
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property taxable by the taxing unit on January 1 of the tax year in |
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which the disaster occurred; or |
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(2) the third tax year after the tax year in which the |
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disaster occurred. |
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SECTION 5. Section 26.063(a), Tax Code, is amended to read |
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as follows: |
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(a) This section applies only to a taxing unit: |
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(1) that is: |
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(A) a taxing unit other than: |
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(i) a special taxing unit; or |
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(ii) a county with a population of 500,000 |
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or more; or |
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(B) a municipality with a population of less than |
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30,000, regardless of whether it is a special taxing unit; |
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(2) that is required to provide notice under Section |
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26.06(b-1) or (b-3); and |
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(3) for which the de minimis rate exceeds the |
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voter-approval tax rate. |
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SECTION 6. Section 26.07(b), Tax Code, is amended to read as |
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follows: |
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(b) If the governing body of a special taxing unit, a county |
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with a population of 500,000 or more, or a municipality with a |
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population of 30,000 or more adopts a tax rate that exceeds the |
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taxing unit's voter-approval tax rate, or the governing body of a |
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taxing unit other than a special taxing unit or a county with a |
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population of 500,000 or more or of a municipality with a population |
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of less than 30,000 regardless of whether the municipality [it] is a |
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special taxing unit adopts a tax rate that exceeds the greater of |
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the taxing unit's voter-approval tax rate or de minimis rate, the |
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registered voters of the taxing unit at an election held for that |
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purpose must determine whether to approve the adopted tax rate. |
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SECTION 7. Section 26.075(a), Tax Code, is amended to read |
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as follows: |
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(a) This section applies only to a taxing unit other than: |
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(1) a special taxing unit; |
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(2) a school district; [or] |
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(3) a municipality with a population of 30,000 or |
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more; or |
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(4) a county with a population of 500,000 or more. |
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SECTION 8. 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 9. This Act takes effect January 1, 2024. |