Texas 2023 - 88th Regular

Texas Senate Bill SB1997 Compare Versions

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Version 2 (New)

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1	1	2023S0266-T 03/07/23
2	2	By: Bettencourt S.B. No. 1997
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the calculation of the ad valorem tax rate of a taxing
8	8	unit.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 26.04(c), Tax Code, is amended to read as
11	11	follows:
12	12	(c) After the assessor for the taxing unit submits the
13	13	appraisal roll for the taxing unit to the governing body of the
14	14	taxing unit as required by Subsection (b), an officer or employee
15	15	designated by the governing body shall calculate the no-new-revenue
16	16	tax rate and the voter-approval tax rate for the taxing unit, where:
17	17	(1) "No-new-revenue tax rate" means a rate expressed
18	18	in dollars per $100 of taxable value calculated according to the
19	19	following formula:
20	20	NO-NEW-REVENUE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
21	21	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
22	22	; and
23	23	(2) "Voter-approval tax rate" means a rate expressed
24	24	in dollars per $100 of taxable value calculated according to the
25	25	following applicable formula:
26	26	(A) for a special taxing unit:
27	27	VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
28	28	OPERATIONS RATE x 1.08) + CURRENT DEBT RATE
29	29	; or
30	30	(B) for a taxing unit other than a special taxing
31	31	unit:
32	32	VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
33	33	OPERATIONS RATE x 1.035) + [(]CURRENT DEBT RATE [+ UNUSED INCREMENT
34	34	RATE)]
35	35	SECTION 2. Sections 26.041(a), (b), and (c), Tax Code, are
36	36	amended to read as follows:
37	37	(a) In the first year in which an additional sales and use
38	38	tax is required to be collected, the no-new-revenue tax rate and
39	39	voter-approval tax rate for the taxing unit are calculated
40	40	according to the following formulas:
41	41	NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
42	42	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN
43	43	RATE
44	44	and
45	45	VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT =
46	46	(NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x 1.08) + (CURRENT
47	47	DEBT RATE - SALES TAX GAIN RATE)
48	48	or
49	49	VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL
50	50	TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x
51	51	1.035) + (CURRENT DEBT RATE [+ UNUSED INCREMENT RATE] - SALES TAX
52	52	GAIN RATE)
53	53	where "sales tax gain rate" means a number expressed in dollars per
54	54	$100 of taxable value, calculated by dividing the revenue that will
55	55	be generated by the additional sales and use tax in the following
56	56	year as calculated under Subsection (d) by the current total value.
57	57	(b) Except as provided by Subsections (a) and (c), in a year
58	58	in which a taxing unit imposes an additional sales and use tax, the
59	59	voter-approval tax rate for the taxing unit is calculated according
60	60	to the following formula, regardless of whether the taxing unit
61	61	levied a property tax in the preceding year:
62	62	VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = [(LAST
63	63	YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / (CURRENT TOTAL
64	64	VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX
65	65	REVENUE RATE)
66	66	or
67	67	VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL
68	68	TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x
69	69	1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT
70	70	RATE [+ UNUSED INCREMENT RATE] - SALES TAX REVENUE RATE)
71	71	where "last year's maintenance and operations expense" means the
72	72	amount spent for maintenance and operations from property tax and
73	73	additional sales and use tax revenues in the preceding year, and
74	74	"sales tax revenue rate" means a number expressed in dollars per
75	75	$100 of taxable value, calculated by dividing the revenue that will
76	76	be generated by the additional sales and use tax in the current year
77	77	as calculated under Subsection (d) by the current total value.
78	78	(c) In a year in which a taxing unit that has been imposing
79	79	an additional sales and use tax ceases to impose an additional sales
80	80	and use tax, the no-new-revenue tax rate and voter-approval tax
81	81	rate for the taxing unit are calculated according to the following
82	82	formulas:
83	83	NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
84	84	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS
85	85	RATE
86	86	and
87	87	VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = [(LAST
88	88	YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / (CURRENT TOTAL
89	89	VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
90	90	or
91	91	VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL
92	92	TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x
93	93	1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + [(]CURRENT
94	94	DEBT RATE [+ UNUSED INCREMENT RATE)]
95	95	where "sales tax loss rate" means a number expressed in dollars per
96	96	$100 of taxable value, calculated by dividing the amount of sales
97	97	and use tax revenue generated in the last four quarters for which
98	98	the information is available by the current total value and "last
99	99	year's maintenance and operations expense" means the amount spent
100	100	for maintenance and operations from property tax and additional
101	101	sales and use tax revenues in the preceding year.
102	102	SECTION 3. Sections 49.23602(a)(2) and (4), Water Code, are
103	103	amended to read as follows:
104	104	(2) "Mandatory tax election rate" means [the rate
105	105	equal to the sum of the following tax rates for the district:
106	106	[(A)] the rate that would impose 1.035 times the
107	107	amount of tax imposed by the district in the preceding year on a
108	108	residence homestead appraised at the average appraised value of a
109	109	residence homestead in the district in that year, disregarding any
110	110	homestead exemption available only to disabled persons or persons
111	111	65 years of age or older[; and
112	112	[(B) the unused increment rate].
113	113	(4) "Voter-approval tax rate" means the rate equal to
114	114	the sum of the following tax rates for the district:
115	115	(A) the current year's debt service tax rate;
116	116	(B) the current year's contract tax rate; and
117	117	(C) the operation and maintenance tax rate that
118	118	would impose 1.035 times the amount of the operation and
119	119	maintenance tax imposed by the district in the preceding year on a
120	120	residence homestead appraised at the average appraised value of a
121	121	residence homestead in the district in that year, disregarding any
122	122	homestead exemption available only to disabled persons or persons
123	123	65 years of age or older[; and
124	124	[(D) the unused increment rate].
125	125	SECTION 4. The following provisions are repealed:
126	126	(1) Section 120.007(d), Local Government Code;
127	127	(2) Section 26.013, Tax Code;
128	128	(3) Section 26.0501(c), Tax Code; and
129	129	(4) Section 49.23602(a)(3), Water Code.
130	130	SECTION 5. This Act applies only to ad valorem taxes imposed
131	131	for an ad valorem tax year that begins on or after the effective
132	132	date of this Act.
133	133	SECTION 6. This Act takes effect January 1, 2024.