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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. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 |
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LEVY [- LOST PROPERTY LEVY)] / [(]CURRENT TOTAL VALUE |
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[- NEW PROPERTY 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 |
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TAX [MAINTENANCE AND OPERATIONS] RATE x 1.08[) + |
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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: |
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VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE TAX [MAINTENANCE |
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AND OPERATIONS] RATE x 1.035) + [(CURRENT DEBT RATE +] UNUSED |
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INCREMENT RATE[)] |
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SECTION 2. 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 |
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LEVY [- LOST PROPERTY LEVY)] / [(]CURRENT TOTAL VALUE |
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[- NEW PROPERTY VALUE])[]] - SALES TAX GAIN RATE |
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and |
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VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING |
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UNIT = (NO-NEW-REVENUE TAX [MAINTENANCE AND |
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OPERATIONS] RATE x 1.08) [+ (CURRENT DEBT RATE] - SALES |
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TAX GAIN RATE[)] |
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or |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT |
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OTHER THAN SPECIAL TAXING UNIT = (NO-NEW-REVENUE TAX |
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[MAINTENANCE AND OPERATIONS] RATE x 1.035) + ([CURRENT |
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DEBT RATE +] UNUSED INCREMENT 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 |
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UNIT = [(LAST YEAR'S [MAINTENANCE AND OPERATIONS] |
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EXPENSE x 1.08) / [(]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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or |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT |
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OTHER THAN SPECIAL TAXING UNIT = [(LAST YEAR'S |
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[MAINTENANCE AND OPERATIONS] EXPENSE x 1.035) / |
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[(]CURRENT TOTAL VALUE [- NEW PROPERTY VALUE)]] + |
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([CURRENT DEBT RATE +] UNUSED INCREMENT RATE - SALES |
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TAX 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 |
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LEVY [- LOST PROPERTY LEVY)] / [(]CURRENT TOTAL VALUE |
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[[- NEW PROPERTY VALUE]])[]] + SALES TAX LOSS RATE |
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and |
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VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING |
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UNIT = [[](LAST YEAR'S [MAINTENANCE AND OPERATIONS] |
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EXPENSE x 1.08) / [(]CURRENT TOTAL VALUE [- NEW |
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PROPERTY VALUE)] + CURRENT DEBT RATE] |
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or |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT |
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OTHER THAN SPECIAL TAXING UNIT = [(LAST YEAR'S |
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[MAINTENANCE AND OPERATIONS] EXPENSE x 1.035) / |
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[(]CURRENT TOTAL VALUE [- NEW PROPERTY VALUE)]] + |
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[(CURRENT DEBT RATE +] UNUSED INCREMENT 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 |
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property tax and additional sales and use tax revenues in the |
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preceding year. |
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SECTION 3. This Act takes effect September 1, 2025. |