S.B. No. 1999
AN ACT
relating to the calculation of the unused increment rate of a taxing
unit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.013(a), Tax Code, is amended by
adding Subdivisions (1-a) and (1-b) to read as follows:
(1-a) "Foregone revenue amount" means the greater of:
(A) zero; or
(B) the amount expressed in dollars calculated
according to the following formula:
FOREGONE REVENUE AMOUNT = (VOTER-APPROVAL TAX RATE - ACTUAL
TAX RATE) x PRECEDING TOTAL VALUE
(1-b) "Preceding total value" means a taxing unit's
current total value in the applicable preceding tax year.
SECTION 2. Section 26.013(b), Tax Code, is amended to read
as follows:
(b) In this chapter, "unused increment rate" means the
greater of:
(1) zero; or
(2) the rate expressed in dollars per $100 of taxable
value calculated according to the following formula:
UNUSED INCREMENT RATE = (YEAR 1 FOREGONE REVENUE AMOUNT +
YEAR 2 FOREGONE REVENUE AMOUNT + YEAR 3 FOREGONE REVENUE AMOUNT) /
CURRENT TOTAL VALUE [VOTER-APPROVAL TAX RATE - YEAR 1 ACTUAL TAX
RATE) + (YEAR 2 VOTER-APPROVAL TAX RATE - YEAR 2 ACTUAL TAX RATE) +
(YEAR 3 VOTER-APPROVAL TAX RATE - YEAR 3 ACTUAL TAX RATE)]
SECTION 3. This Act takes effect January 1, 2024.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1999 passed the Senate on
April 27, 2023, by the following vote: Yeas 29, Nays 2.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1999 passed the House on
May 24, 2023, by the following vote: Yeas 134, Nays 4,
one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor