Texas 2023 - 88th Regular

Texas House Bill HB4803 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	By: Harrison H.B. No. 4803
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to municipal and county ad valorem tax relief.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Chapter 140, Local Government Code, is amended
9	9	by adding Section 140.014 to read as follows:
10	10	Sec. 140.014. AD VALOREM TAX RELIEF USING CERTAIN SURPLUS
11	11	REVENUE. (a) In this section:
12	12	(1) "Consumer price index" means the index that the
13	13	comptroller considers to most accurately report changes in the
14	14	purchasing power of the dollar for consumers in this state.
15	15	(2) "Inflation rate" means the amount, expressed in
16	16	decimal form rounded to the nearest thousandth, computed by
17	17	determining the percentage change in the consumer price index for
18	18	the most recent 12-month period for which the index can be
19	19	determined as compared to the consumer price index for the 12-month
20	20	period preceding that period.
21	21	(3) "Population growth rate" means the rate of growth
22	22	of the state's population during the preceding calendar year,
23	23	expressed in decimal form rounded to the nearest thousandth,
24	24	determined by the board in accordance with the most recent
25	25	population estimates published by the United States Census Bureau.
26	26	(4) "Surplus revenue" means the total amount of money
27	27	received by a county or municipality in the preceding fiscal year in
28	28	excess of the amount computed by:
29	29	(A) multiplying the amount of the adopted budget
30	30	of the county or municipality for the preceding fiscal year by the
31	31	sum of 1 and the population growth rate; and
32	32	(B) multiplying the amount computed under
33	33	Paragraph (A) by the sum of 1 and the inflation rate.
34	34	(b) By July 1 or as soon thereafter as practicable, the
35	35	comptroller shall determine the rate of inflation in this state and
36	36	publish that rate in the Texas Register.
37	37	(c) A county or municipality shall use the total amount of
38	38	surplus revenue generated by the county or municipality in the
39	39	preceding fiscal year for ad valorem tax relief in the current
40	40	fiscal year. The relief must be provided in a manner that reduces
41	41	the amount of ad valorem taxes that a property owner would otherwise
42	42	be required to pay.
43	43	SECTION 2. Chapter 26, Tax Code, is amended by adding
44	44	Section 26.046 to read as follows:
45	45	Sec. 26.046. ANNUAL LIMIT ON TAX RATE OF COUNTY OR
46	46	MUNICIPALITY. (a) In this section:
47	47	(1) "Consumer price index" means the index that the
48	48	comptroller considers to most accurately report changes in the
49	49	purchasing power of the dollar for consumers in this state.
50	50	(2) "Inflation rate" means the amount, expressed in
51	51	decimal form rounded to the nearest thousandth, computed by
52	52	determining the percentage change in the consumer price index for
53	53	the most recent 12-month period for which the index can be
54	54	determined as compared to the consumer price index for the 12-month
55	55	period preceding that period.
56	56	(3) "Population growth rate" means the rate of growth
57	57	of the state's population during the preceding calendar year,
58	58	expressed in decimal form rounded to the nearest thousandth,
59	59	determined by the board in accordance with the most recent
60	60	population estimates published by the United States Census Bureau.
61	61	(b) By July 1 or as soon thereafter as practicable, the
62	62	comptroller shall determine the rate of inflation in this state and
63	63	publish that rate in the Texas Register.
64	64	(c) Notwithstanding any other law, including Sections
65	65	26.042 and 26.07, the governing body of a county or municipality may
66	66	not adopt a tax rate for a tax year that exceeds the rate, expressed
67	67	in dollars per $100 of taxable value, computed by:
68	68	(1) multiplying the total amount of money received by
69	69	the county or municipality from all sources during the preceding
70	70	tax year by the sum of 1 and the population growth rate;
71	71	(2) multiplying the amount computed under Subdivision
72	72	(1) by the sum of 1 and the inflation rate;
73	73	(3) subtracting from the amount computed under
74	74	Subdivision (2) the amount of money estimated to be received by the
75	75	county or municipality in the current tax year from all sources
76	76	other than ad valorem taxes; and
77	77	(4) dividing the amount computed under Subdivision (3)
78	78	by the current total value for the county or municipality.
79	79	(d) By August 7 or as soon thereafter as practicable, an
80	80	officer or employee designated by the governing body of a county or
81	81	municipality shall calculate the rate described by Subsection (c)
82	82	and submit the rate to the governing body of the county or
83	83	municipality.
84	84	(e) Notwithstanding Subsection (c), the governing body of a
85	85	county or municipality may adopt a tax rate for a tax year that
86	86	exceeds the rate computed under that subsection if:
87	87	(1) before the adoption of a tax rate for that tax year
88	88	the county or municipality pledged the taxes for payment of a debt;
89	89	and
90	90	(2) adopting a rate less than or equal to the rate
91	91	computed under that subsection would impair the obligation of the
92	92	contract creating the debt.
93	93	SECTION 3. Section 140.014, Local Government Code, as added
94	94	by this Act, applies only to a county or municipal fiscal year that
95	95	begins on or after the effective date of this Act.
96	96	SECTION 4. Section 26.046, Tax Code, as added by this Act,
97	97	applies only to the ad valorem tax rate adopted by a county or
98	98	municipality for an ad valorem tax year that begins on or after the
99	99	effective date of this Act.
100	100	SECTION 5. This Act takes effect January 1, 2024.