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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a taxing unit to use or transfer for |
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the repayment of debt an increase in maintenance and operations ad |
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valorem tax revenue attributable to a tax the rate of which is |
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approved at an election. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.07, Tax Code, is amended by adding |
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Subsection (h) to read as follows: |
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(h) Notwithstanding any other law, an increase in a taxing |
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unit's maintenance and operations tax revenue derived from an |
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election under this chapter may not be used or transferred to repay |
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debt in installment payments or otherwise. This subsection does |
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not prohibit a school district from using money disbursed from the |
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tax increment fund for a reinvestment zone under Chapter 311 in |
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accordance with the agreement entered into by the district with the |
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governing body of the municipality or county that designated the |
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zone under Section 311.013(f). |
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SECTION 2. Section 26.07(h), Tax Code, as added by this Act, |
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applies only to ad valorem taxes imposed for an ad valorem tax year |
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that begins on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2026. |