LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 10, 2023 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1999 by Bettencourt (Relating to the calculation of the unused increment rate of a taxing unit.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Chapter 26 of the Tax Code, relating to Assessment, to revise the calculation of the unused increment rate of a taxing unit, as well as provide definitions for the terms foregone revenue amount and preceding total value. The change in the calculation of the unused increment rate may result in a reduction of the total unused increment rate when compared to the current calculation. The unused increment rate is a component of the voter-approval tax rate under Section 26.04 of the Tax Code. Local Government ImpactPassage of the bill could reduce the unused increment rate that is used to calculate the voter-approval tax rate. As a result, voter-approval tax rates could be reduced, which could result in a reduction in the amount of ad valorem tax revenue a unit of local government could generate without voter approval. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, AF, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 10, 2023
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1999 by Bettencourt (Relating to the calculation of the unused increment rate of a taxing unit.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1999 by Bettencourt (Relating to the calculation of the unused increment rate of a taxing unit.), As Introduced
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1999 by Bettencourt (Relating to the calculation of the unused increment rate of a taxing unit.), As Introduced
SB1999 by Bettencourt (Relating to the calculation of the unused increment rate of a taxing unit.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 26 of the Tax Code, relating to Assessment, to revise the calculation of the unused increment rate of a taxing unit, as well as provide definitions for the terms foregone revenue amount and preceding total value. The change in the calculation of the unused increment rate may result in a reduction of the total unused increment rate when compared to the current calculation. The unused increment rate is a component of the voter-approval tax rate under Section 26.04 of the Tax Code.
Local Government Impact
Passage of the bill could reduce the unused increment rate that is used to calculate the voter-approval tax rate. As a result, voter-approval tax rates could be reduced, which could result in a reduction in the amount of ad valorem tax revenue a unit of local government could generate without voter approval.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, AF, SD, BRI
JMc, AF, SD, BRI