| 1 | 1 | | S.B. No. 1999 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the calculation of the unused increment rate of a taxing |
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| 6 | 6 | | unit. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 26.013(a), Tax Code, is amended by |
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| 9 | 9 | | adding Subdivisions (1-a) and (1-b) to read as follows: |
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| 10 | 10 | | (1-a) "Foregone revenue amount" means the greater of: |
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| 11 | 11 | | (A) zero; or |
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| 12 | 12 | | (B) the amount expressed in dollars calculated |
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| 13 | 13 | | according to the following formula: |
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| 14 | 14 | | FOREGONE REVENUE AMOUNT = (VOTER-APPROVAL TAX RATE - ACTUAL |
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| 15 | 15 | | TAX RATE) x PRECEDING TOTAL VALUE |
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| 16 | 16 | | (1-b) "Preceding total value" means a taxing unit's |
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| 17 | 17 | | current total value in the applicable preceding tax year. |
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| 18 | 18 | | SECTION 2. Section 26.013(b), Tax Code, is amended to read |
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| 19 | 19 | | as follows: |
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| 20 | 20 | | (b) In this chapter, "unused increment rate" means the |
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| 21 | 21 | | greater of: |
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| 22 | 22 | | (1) zero; or |
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| 23 | 23 | | (2) the rate expressed in dollars per $100 of taxable |
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| 24 | 24 | | value calculated according to the following formula: |
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| 25 | 25 | | UNUSED INCREMENT RATE = (YEAR 1 FOREGONE REVENUE AMOUNT + |
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| 26 | 26 | | YEAR 2 FOREGONE REVENUE AMOUNT + YEAR 3 FOREGONE REVENUE AMOUNT) / |
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| 27 | 27 | | CURRENT TOTAL VALUE [VOTER-APPROVAL TAX RATE - YEAR 1 ACTUAL TAX |
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| 28 | 28 | | RATE) + (YEAR 2 VOTER-APPROVAL TAX RATE - YEAR 2 ACTUAL TAX RATE) + |
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| 29 | 29 | | (YEAR 3 VOTER-APPROVAL TAX RATE - YEAR 3 ACTUAL TAX RATE)] |
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| 30 | 30 | | SECTION 3. This Act takes effect January 1, 2024. |
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| 31 | 31 | | ______________________________ ______________________________ |
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| 32 | 32 | | President of the Senate Speaker of the House |
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| 33 | 33 | | I hereby certify that S.B. No. 1999 passed the Senate on |
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| 34 | 34 | | April 27, 2023, by the following vote: Yeas 29, Nays 2. |
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| 35 | 35 | | ______________________________ |
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| 36 | 36 | | Secretary of the Senate |
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| 37 | 37 | | I hereby certify that S.B. No. 1999 passed the House on |
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| 38 | 38 | | May 24, 2023, by the following vote: Yeas 134, Nays 4, |
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| 39 | 39 | | one present not voting. |
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| 40 | 40 | | ______________________________ |
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| 41 | 41 | | Chief Clerk of the House |
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| 42 | 42 | | Approved: |
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| 43 | 43 | | ______________________________ |
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| 44 | 44 | | Date |
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| 45 | 45 | | ______________________________ |
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| 46 | 46 | | Governor |
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