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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 no-new-revenue tax rate for a |
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taxing unit. |
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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 26.0431 to read as follows: |
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Sec. 26.0431. NO-NEW-REVENUE TAX RATE ADJUSTMENT FOR |
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INFLATION. (a) In this section: |
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(1) "Consumer price index" means the average over a |
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calendar year of the index that the comptroller considers to most |
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accurately report changes in the purchasing power of the dollar for |
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consumers in this state. |
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(2) "Inflation rate" means the amount, expressed in |
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decimal form rounded to the nearest thousandth, computed by |
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determining the percentage increase or decrease in the consumer |
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price index for the preceding calendar year as compared to the |
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consumer price index for the calendar year preceding that calendar |
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year. |
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(b) The comptroller shall determine the inflation rate for |
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the current year and publish the rate in the Texas Register each |
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year on July 1 or as soon thereafter as practicable. |
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(c) Each year, the officer or employee of a taxing unit |
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designated by the governing body of the taxing unit to calculate tax |
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rates for the taxing unit under Section 26.04(c) shall adjust the |
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taxing unit's no-new-revenue tax rate, calculated as otherwise |
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provided by that subsection or Section 26.041, as applicable, up or |
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down as appropriate to reflect the increase or decrease in the |
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inflation rate. |
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(d) Notwithstanding any other law, the no-new-revenue tax |
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rate as adjusted under Subsection (c) is the taxing unit's |
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no-new-revenue rate for the applicable tax year. |
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SECTION 2. The change in law made by this Act applies to the |
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calculation of the no-new-revenue tax rate of a taxing unit |
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beginning with the 2026 tax year. |
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SECTION 3. This Act takes effect January 1, 2026. |