| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the calculation of the voter-approval tax rate for |
|
|
certain municipalities that receive municipal hotel occupancy tax |
|
|
revenue. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 26.012, Tax Code, is amended by adding |
|
|
Subdivisions (9-a), (16-a), and (16-b) to read as follows: |
|
|
(9-a) "Eligible coastal municipality" means a |
|
|
municipality described by Section 351.001(3)(A) that has created a |
|
|
park board of trustees under Section 306.011, Local Government |
|
|
Code. |
|
|
(16-a) "Misspent hotel occupancy tax revenue" means an |
|
|
amount equal to the amount of revenue received under Chapter 351 by |
|
|
an eligible coastal municipality during the preceding tax year |
|
|
that: |
|
|
(A) was not distributed to the municipality's |
|
|
park board of trustees under a contract or interlocal agreement |
|
|
authorized by Chapter 351 to be spent for an allowable purpose |
|
|
authorized by that chapter; |
|
|
(B) was spent by the municipality for a purpose |
|
|
not authorized by Chapter 351; or |
|
|
(C) was spent by the municipality's park board of |
|
|
trustees for a general municipal purpose not authorized by Chapter |
|
|
351 under an agreement with the municipality. |
|
|
(16-b) "Misspent hotel occupancy tax revenue rate" |
|
|
means the rate expressed in dollars per $100 of taxable value |
|
|
calculated according to the following formula: |
|
|
MISSPENT HOTEL OCCUPANCY TAX REVENUE RATE = MISSPENT |
|
|
HOTEL OCCUPANCY TAX REVENUE / CURRENT TOTAL VALUE |
|
|
SECTION 2. 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 an eligible coastal municipality: |
|
|
VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE |
|
|
AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + |
|
|
UNUSED INCREMENT RATE - MISSPENT HOTEL OCCUPANCY TAX |
|
|
REVENUE RATE) |
|
|
; or |
|
|
(C) for a taxing unit other than a special taxing |
|
|
unit or eligible coastal municipality: |
|
|
VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE |
|
|
AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + |
|
|
UNUSED INCREMENT RATE) |
|
|
SECTION 3. 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 ELIGIBLE COASTAL |
|
|
MUNICIPALITY = (NO-NEW-REVENUE MAINTENANCE AND |
|
|
OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + UNUSED |
|
|
INCREMENT RATE - SALES TAX GAIN RATE - MISSPENT HOTEL |
|
|
OCCUPANCY TAX REVENUE RATE) |
|
|
or |
|
|
VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN |
|
|
SPECIAL TAXING UNIT OR ELIGIBLE COASTAL MUNICIPALITY = |
|
|
(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 ELIGIBLE COASTAL |
|
|
MUNICIPALITY = [(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 - MISSPENT |
|
|
HOTEL OCCUPANCY TAX REVENUE RATE) |
|
|
or |
|
|
VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN |
|
|
SPECIAL TAXING UNIT OR ELIGIBLE COASTAL MUNICIPALITY = |
|
|
[(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 ELIGIBLE COASTAL |
|
|
MUNICIPALITY = [(LAST YEAR'S MAINTENANCE AND |
|
|
OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE - |
|
|
NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED |
|
|
INCREMENT RATE - MISSPENT HOTEL OCCUPANCY TAX REVENUE |
|
|
RATE) |
|
|
or |
|
|
VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN |
|
|
SPECIAL TAXING UNIT OR ELIGIBLE COASTAL MUNICIPALITY = |
|
|
[(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 4. 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 5. This Act takes effect January 1, 2026. |