88R9756 LHC-D
By: Muñoz, Jr. H.B. No. 3120
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the voter-approval tax rate of
certain junior college districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.012, Tax Code, is amended by adding
Subdivision (18-c) and amending Subdivision (19) to read as
follows:
(18-c) "Special junior college district" means a
junior college district:
(A) whose service area boundaries and taxing
district boundaries are identical; and
(B) that is located in at least one county
adjacent to an international border.
(19) "Special taxing unit" means:
(A) a taxing unit, other than a school district,
for which the maintenance and operations tax rate proposed for the
current tax year is 2.5 cents or less per $100 of taxable value;
(B) a junior college district, including a
special junior college district; or
(C) a hospital district.
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 other than a
special junior college district:
VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
OPERATIONS RATE x 1.08) + CURRENT DEBT RATE
; [or]
(B) for a special taxing unit that is a special
junior college district:
VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
OPERATIONS RATE x 1.03) + CURRENT DEBT RATE
; or
(C) 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 3. Section 26.042(a), Tax Code, is amended to read
as follows:
(a) Notwithstanding Sections 26.04 and 26.041, the
governing body of a taxing unit other than a school district or a
special taxing unit may direct the designated officer or employee
to calculate the voter-approval tax rate of the taxing unit in the
manner provided for a special taxing unit other than a special
junior college district if any part of the taxing unit is located in
an area declared a disaster area during the current tax year by the
governor or by the president of the United States and at least one
person is granted an exemption under Section 11.35 for property
located in the taxing unit. The designated officer or employee
shall continue calculating the voter-approval tax rate in the
manner provided by this subsection until the earlier of:
(1) the first tax year in which the total taxable value
of property taxable by the taxing unit as shown on the appraisal
roll for the taxing unit submitted by the assessor for the taxing
unit to the governing body exceeds the total taxable value of
property taxable by the taxing unit on January 1 of the tax year in
which the disaster occurred; or
(2) the third tax year after the tax year in which the
disaster occurred.
SECTION 4. Section 26.075(b), Tax Code, is amended to read
as follows:
(b) This section applies to a taxing unit only in a tax year
in which the taxing unit's:
(1) de minimis rate exceeds the taxing unit's
voter-approval tax rate; and
(2) adopted tax rate is:
(A) equal to or lower than the taxing unit's de
minimis rate; and
(B) greater than the greater of the taxing
unit's:
(i) voter-approval tax rate calculated as
if the taxing unit were a special taxing unit other than a special
junior college district; or
(ii) voter-approval tax rate.
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.