By: Muñoz H.B. No. 4949
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the voter-approval tax rate of
certain counties and the procedure for the adoption by such a county
of a tax rate that exceeds that rate; making conforming changes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.012(19), Tax Code, is amended to read
as follows:
(19) "Special taxing unit" means:
(A) a taxing unit, other than a school district
or a county with a population of 500,000 or more, for which the
maintenance and operations tax rate proposed for the current tax
year is 2.5 cents or less per $100 of taxable value;
(B) a junior college district; or
(C) a hospital district.
SECTION 2. Section 26.04(c), Tax Code, is amended to read as
follows:
(c) After the assessor for the taxing unit submits the
appraisal roll for the taxing unit to the governing body of the
taxing unit as required by Subsection (b), an officer or employee
designated by the governing body shall calculate the no-new-revenue
tax rate and the voter-approval tax rate for the taxing unit, where:
(1) "No-new-revenue tax rate" means a rate expressed
in dollars per $100 of taxable value calculated according to the
following formula:
NO-NEW-REVENUE TAX RATE = (LAST YEAR'S
LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)
; and
(2) "Voter-approval tax rate" means a rate expressed
in dollars per $100 of taxable value calculated according to the
following applicable formula:
(A) for a special taxing unit:
VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE
MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT
DEBT RATE
; [or]
(B) for a taxing unit other than a special taxing
unit or a county with a population of 500,000 or more:
VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE
MAINTENANCE AND OPERATIONS RATE x 1.035) + (CURRENT
DEBT RATE + UNUSED INCREMENT RATE)
; or
(C) for a county with a population of 500,000 or
more:
VOTER-APPROVAL TAX RATE = NO-NEW-REVENUE
MAINTENANCE AND OPERATIONS RATE + CURRENT DEBT RATE
SECTION 3. Sections 26.041(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) In the first year in which an additional sales and use
tax is required to be collected, the no-new-revenue tax rate and
voter-approval tax rate for the taxing unit are calculated
according to the following formulas:
NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S
LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN RATE
; and
VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING
UNIT = (NO-NEW-REVENUE MAINTENANCE AND OPERATIONS
RATE x 1.08) + (CURRENT DEBT RATE - SALES TAX GAIN
RATE)
; [or]
VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER
THAN SPECIAL TAXING UNIT OR COUNTY WITH POPULATION OF
500,000 OR MORE = (NO-NEW-REVENUE MAINTENANCE AND
OPERATIONS RATE x 1.035) + (CURRENT DEBT
RATE + UNUSED INCREMENT RATE - SALES TAX GAIN RATE)
; or
VOTER-APPROVAL TAX RATE FOR COUNTY WITH
POPULATION OF 500,000 OR MORE = NO-NEW-REVENUE
MAINTENANCE AND OPERATIONS RATE + (CURRENT DEBT
RATE - SALES TAX GAIN RATE)
where "sales tax gain rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that will
be generated by the additional sales and use tax in the following
year as calculated under Subsection (d) by the current total value.
(b) Except as provided by Subsections (a) and (c), in a year
in which a taxing unit imposes an additional sales and use tax, the
voter-approval tax rate for the taxing unit is calculated according
to the following formula, regardless of whether the taxing unit
levied a property tax in the preceding year:
VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING
UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
EXPENSE x 1.08) / (CURRENT TOTAL VALUE - NEW
PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX
REVENUE RATE)
; [or]
VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER
THAN SPECIAL TAXING UNIT OR COUNTY WITH POPULATION OF
500,000 OR MORE = [(LAST YEAR'S MAINTENANCE AND
OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT
RATE + UNUSED INCREMENT RATE - SALES TAX REVENUE RATE)
; or
VOTER-APPROVAL TAX RATE FOR COUNTY WITH
POPULATION OF 500,000 OR MORE = [LAST YEAR'S
MAINTENANCE AND OPERATIONS EXPENSE / (CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT
RATE - SALES TAX REVENUE RATE)
where "last year's maintenance and operations expense" means the
amount spent for maintenance and operations from property tax and
additional sales and use tax revenues in the preceding year, and
"sales tax revenue rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that will
be generated by the additional sales and use tax in the current year
as calculated under Subsection (d) by the current total value.
(c) In a year in which a taxing unit that has been imposing
an additional sales and use tax ceases to impose an additional sales
and use tax, the no-new-revenue tax rate and voter-approval tax
rate for the taxing unit are calculated according to the following
formulas:
NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S
LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS RATE
; and
VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING
UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
EXPENSE x 1.08) / (CURRENT TOTAL VALUE - NEW PROPERTY
VALUE)] + CURRENT DEBT RATE
; [or]
VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER
THAN SPECIAL TAXING UNIT OR COUNTY WITH POPULATION OF
500,000 OR MORE = [(LAST YEAR'S MAINTENANCE AND
OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT
RATE + UNUSED INCREMENT RATE)
; or
VOTER-APPROVAL TAX RATE FOR COUNTY WITH
POPULATION OF 500,000 OR MORE = [LAST YEAR'S
MAINTENANCE AND OPERATIONS EXPENSE / (CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
where "sales tax loss rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the amount of sales
and use tax revenue generated in the last four quarters for which
the information is available by the current total value and "last
year's maintenance and operations expense" means the amount spent
for maintenance and operations from property tax and additional
sales and use tax revenues in the preceding year.
SECTION 4. Section 26.042(a), Tax Code, is amended to read
as follows:
(a) Notwithstanding Sections 26.04 and 26.041, the
governing body of a taxing unit other than a school district, [or] a
special taxing unit, or a county with a population of 500,000 or
more may direct the designated officer or employee to calculate the
voter-approval tax rate of the taxing unit in the manner provided
for a special taxing unit if any part of the taxing unit is located
in an area declared a disaster area during the current tax year by
the governor or by the president of the United States and at least
one person is granted an exemption under Section 11.35 for property
located in the taxing unit. The designated officer or employee
shall continue calculating the voter-approval tax rate in the
manner provided by this subsection until the earlier of:
(1) the first tax year in which the total taxable value
of property taxable by the taxing unit as shown on the appraisal
roll for the taxing unit submitted by the assessor for the taxing
unit to the governing body exceeds the total taxable value of
property taxable by the taxing unit on January 1 of the tax year in
which the disaster occurred; or
(2) the third tax year after the tax year in which the
disaster occurred.
SECTION 5. Section 26.063(a), Tax Code, is amended to read
as follows:
(a) This section applies only to a taxing unit:
(1) that is:
(A) a taxing unit other than:
(i) a special taxing unit; or
(ii) a county with a population of 500,000
or more; or
(B) a municipality with a population of less than
30,000, regardless of whether it is a special taxing unit;
(2) that is required to provide notice under Section
26.06(b-1) or (b-3); and
(3) for which the de minimis rate exceeds the
voter-approval tax rate.
SECTION 6. Section 26.07(b), Tax Code, is amended to read as
follows:
(b) If the governing body of a special taxing unit, a county
with a population of 500,000 or more, or a municipality with a
population of 30,000 or more adopts a tax rate that exceeds the
taxing unit's voter-approval tax rate, or the governing body of a
taxing unit other than a special taxing unit or a county with a
population of 500,000 or more or of a municipality with a population
of less than 30,000 regardless of whether the municipality [it] is a
special taxing unit adopts a tax rate that exceeds the greater of
the taxing unit's voter-approval tax rate or de minimis rate, the
registered voters of the taxing unit at an election held for that
purpose must determine whether to approve the adopted tax rate.
SECTION 7. Section 26.075(a), Tax Code, is amended to read
as follows:
(a) This section applies only to a taxing unit other than:
(1) a special taxing unit;
(2) a school district; [or]
(3) a municipality with a population of 30,000 or
more; or
(4) a county with a population of 500,000 or more.
SECTION 8. This Act applies only to ad valorem taxes imposed
for an ad valorem tax year that begins on or after the effective
date of this Act.
SECTION 9. This Act takes effect January 1, 2026.