2023S0266-T 03/07/23
 
  By: Bettencourt S.B. No. 1997
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the calculation of the ad valorem tax rate of a taxing
  unit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 26.04(c), Tax Code, is amended to read as
  follows:
         (c)  After the assessor for the taxing unit submits the
  appraisal roll for the taxing unit to the governing body of the
  taxing unit as required by Subsection (b), an officer or employee
  designated by the governing body shall calculate the no-new-revenue
  tax rate and the voter-approval tax rate for the taxing unit, where:
               (1)  "No-new-revenue tax rate" means a rate expressed
  in dollars per $100 of taxable value calculated according to the
  following formula:
         NO-NEW-REVENUE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
  LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
         ; and
               (2)  "Voter-approval tax rate" means a rate expressed
  in dollars per $100 of taxable value calculated according to the
  following applicable formula:
                     (A)  for a special taxing unit:
         VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
  OPERATIONS RATE x 1.08) + CURRENT DEBT RATE
         ; or
                     (B)  for a taxing unit other than a special taxing
  unit:
         VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
  OPERATIONS RATE x 1.035) + [(]CURRENT DEBT RATE [+ UNUSED INCREMENT
  RATE)]
         SECTION 2.  Sections 26.041(a), (b), and (c), Tax Code, are
  amended to read as follows:
         (a)  In the first year in which an additional sales and use
  tax is required to be collected, the no-new-revenue tax rate and
  voter-approval tax rate for the taxing unit are calculated
  according to the following formulas:
         NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
  LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN
  RATE
  and
         VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT =
  (NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x 1.08) + (CURRENT
  DEBT RATE - SALES TAX GAIN RATE)
  or
         VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL
  TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x
  1.035) + (CURRENT DEBT RATE [+ UNUSED INCREMENT RATE] - SALES TAX
  GAIN RATE)
  where "sales tax gain rate" means a number expressed in dollars per
  $100 of taxable value, calculated by dividing the revenue that will
  be generated by the additional sales and use tax in the following
  year as calculated under Subsection (d) by the current total value.
         (b)  Except as provided by Subsections (a) and (c), in a year
  in which a taxing unit imposes an additional sales and use tax, the
  voter-approval tax rate for the taxing unit is calculated according
  to the following formula, regardless of whether the taxing unit
  levied a property tax in the preceding year:
         VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = [(LAST
  YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / (CURRENT TOTAL
  VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX
  REVENUE RATE)
  or
         VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL
  TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x
  1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT
  RATE [+ UNUSED INCREMENT RATE] - SALES TAX REVENUE RATE)
  where "last year's maintenance and operations expense" means the
  amount spent for maintenance and operations from property tax and
  additional sales and use tax revenues in the preceding year, and
  "sales tax revenue rate" means a number expressed in dollars per
  $100 of taxable value, calculated by dividing the revenue that will
  be generated by the additional sales and use tax in the current year
  as calculated under Subsection (d) by the current total value.
         (c)  In a year in which a taxing unit that has been imposing
  an additional sales and use tax ceases to impose an additional sales
  and use tax, the no-new-revenue tax rate and voter-approval tax
  rate for the taxing unit are calculated according to the following
  formulas:
         NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
  LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS
  RATE
  and
         VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = [(LAST
  YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / (CURRENT TOTAL
  VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
  or
         VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL
  TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x
  1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + [(]CURRENT
  DEBT RATE [+ UNUSED INCREMENT RATE)]
  where "sales tax loss rate" means a number expressed in dollars per
  $100 of taxable value, calculated by dividing the amount of sales
  and use tax revenue generated in the last four quarters for which
  the information is available by the current total value and "last
  year's maintenance and operations expense" means the amount spent
  for maintenance and operations from property tax and additional
  sales and use tax revenues in the preceding year.
         SECTION 3.  Sections 49.23602(a)(2) and (4), Water Code, are
  amended to read as follows:
               (2)  "Mandatory tax election rate" means [the rate
  equal to the sum of the following tax rates for the district:
                     [(A)]  the rate that would impose 1.035 times the
  amount of tax imposed by the district in the preceding year on a
  residence homestead appraised at the average appraised value of a
  residence homestead in the district in that year, disregarding any
  homestead exemption available only to disabled persons or persons
  65 years of age or older[; and
                     [(B)  the unused increment rate].
               (4)  "Voter-approval tax rate" means the rate equal to
  the sum of the following tax rates for the district:
                     (A)  the current year's debt service tax rate;
                     (B)  the current year's contract tax rate; and
                     (C)  the operation and maintenance tax rate that
  would impose 1.035 times the amount of the operation and
  maintenance tax imposed by the district in the preceding year on a
  residence homestead appraised at the average appraised value of a
  residence homestead in the district in that year, disregarding any
  homestead exemption available only to disabled persons or persons
  65 years of age or older[; and
                     [(D)  the unused increment rate].
         SECTION 4.  The following provisions are repealed:
               (1)  Section 120.007(d), Local Government Code;
               (2)  Section 26.013, Tax Code;
               (3)  Section 26.0501(c), Tax Code; and
               (4)  Section 49.23602(a)(3), Water Code.
         SECTION 5.  This Act applies only to ad valorem taxes imposed
  for an ad valorem tax year that begins on or after the effective
  date of this Act.
         SECTION 6.  This Act takes effect January 1, 2024.