Texas 2025 - 89th Regular

Texas House Bill HB4949 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Muñoz H.B. No. 4949
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the calculation of the voter-approval tax rate of
7	9		certain counties and the procedure for the adoption by such a county
8	10		of a tax rate that exceeds that rate; making conforming changes.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Section 26.012(19), Tax Code, is amended to read
11	13		as follows:
12	14		(19) "Special taxing unit" means:
13	15		(A) a taxing unit, other than a school district
14	16		or a county with a population of 500,000 or more, for which the
15	17		maintenance and operations tax rate proposed for the current tax
16	18		year is 2.5 cents or less per $100 of taxable value;
17	19		(B) a junior college district; or
18	20		(C) a hospital district.
19	21		SECTION 2. Section 26.04(c), Tax Code, is amended to read as
20	22		follows:
21	23		(c) After the assessor for the taxing unit submits the
22	24		appraisal roll for the taxing unit to the governing body of the
23	25		taxing unit as required by Subsection (b), an officer or employee
24	26		designated by the governing body shall calculate the no-new-revenue
25	27		tax rate and the voter-approval tax rate for the taxing unit, where:
26	28		(1) "No-new-revenue tax rate" means a rate expressed
27	29		in dollars per $100 of taxable value calculated according to the
28	30		following formula:
29	31		NO-NEW-REVENUE TAX RATE = (LAST YEAR'S
30	32		LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL
31	33		VALUE - NEW PROPERTY VALUE)
32	34		; and
33	35		(2) "Voter-approval tax rate" means a rate expressed
34	36		in dollars per $100 of taxable value calculated according to the
35	37		following applicable formula:
36	38		(A) for a special taxing unit:
37	39		VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE
38	40		MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT
39	41		DEBT RATE
40	42		; [or]
41	43		(B) for a taxing unit other than a special taxing
42	44		unit or a county with a population of 500,000 or more:
43	45		VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE
44	46		MAINTENANCE AND OPERATIONS RATE x 1.035) + (CURRENT
45	47		DEBT RATE + UNUSED INCREMENT RATE)
46	48		; or
47	49		(C) for a county with a population of 500,000 or
48	50		more:
49	51		VOTER-APPROVAL TAX RATE = NO-NEW-REVENUE
50	52		MAINTENANCE AND OPERATIONS RATE + CURRENT DEBT RATE
51	53		SECTION 3. Sections 26.041(a), (b), and (c), Tax Code, are
52	54		amended to read as follows:
53	55		(a) In the first year in which an additional sales and use
54	56		tax is required to be collected, the no-new-revenue tax rate and
55	57		voter-approval tax rate for the taxing unit are calculated
56	58		according to the following formulas:
57	59		NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S
58	60		LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL
59	61		VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN RATE
60	62		; and
61	63		VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING
62	64		UNIT = (NO-NEW-REVENUE MAINTENANCE AND OPERATIONS
63	65		RATE x 1.08) + (CURRENT DEBT RATE - SALES TAX GAIN
64	66		RATE)
65	67		; [or]
66	68		VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER
67	69		THAN SPECIAL TAXING UNIT OR COUNTY WITH POPULATION OF
68	70		500,000 OR MORE = (NO-NEW-REVENUE MAINTENANCE AND
69	71		OPERATIONS RATE x 1.035) + (CURRENT DEBT
70	72		RATE + UNUSED INCREMENT RATE - SALES TAX GAIN RATE)
71	73		; or
72	74		VOTER-APPROVAL TAX RATE FOR COUNTY WITH
73	75		POPULATION OF 500,000 OR MORE = NO-NEW-REVENUE
74	76		MAINTENANCE AND OPERATIONS RATE + (CURRENT DEBT
75	77		RATE - SALES TAX GAIN RATE)
76	78		where "sales tax gain rate" means a number expressed in dollars per
77	79		$100 of taxable value, calculated by dividing the revenue that will
78	80		be generated by the additional sales and use tax in the following
79	81		year as calculated under Subsection (d) by the current total value.
80	82		(b) Except as provided by Subsections (a) and (c), in a year
81	83		in which a taxing unit imposes an additional sales and use tax, the
82	84		voter-approval tax rate for the taxing unit is calculated according
83	85		to the following formula, regardless of whether the taxing unit
84	86		levied a property tax in the preceding year:
85	87		VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING
86	88		UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
87	89		EXPENSE x 1.08) / (CURRENT TOTAL VALUE - NEW
88	90		PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX
89	91		REVENUE RATE)
90	92		; [or]
91	93		VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER
92	94		THAN SPECIAL TAXING UNIT OR COUNTY WITH POPULATION OF
93	95		500,000 OR MORE = [(LAST YEAR'S MAINTENANCE AND
94	96		OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL
95	97		VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT
96	98		RATE + UNUSED INCREMENT RATE - SALES TAX REVENUE RATE)
97	99		; or
98	100		VOTER-APPROVAL TAX RATE FOR COUNTY WITH
99	101		POPULATION OF 500,000 OR MORE = [LAST YEAR'S
100	102		MAINTENANCE AND OPERATIONS EXPENSE / (CURRENT TOTAL
101	103		VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT
102	104		RATE - SALES TAX REVENUE RATE)
103	105		where "last year's maintenance and operations expense" means the
104	106		amount spent for maintenance and operations from property tax and
105	107		additional sales and use tax revenues in the preceding year, and
106	108		"sales tax revenue rate" means a number expressed in dollars per
107	109		$100 of taxable value, calculated by dividing the revenue that will
108	110		be generated by the additional sales and use tax in the current year
109	111		as calculated under Subsection (d) by the current total value.
110	112		(c) In a year in which a taxing unit that has been imposing
111	113		an additional sales and use tax ceases to impose an additional sales
112	114		and use tax, the no-new-revenue tax rate and voter-approval tax
113	115		rate for the taxing unit are calculated according to the following
114	116		formulas:
115	117		NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S
116	118		LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL
117	119		VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS RATE
118	120		; and
119	121		VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING
120	122		UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
121	123		EXPENSE x 1.08) / (CURRENT TOTAL VALUE - NEW PROPERTY
122	124		VALUE)] + CURRENT DEBT RATE
123	125		; [or]
124	126		VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER
125	127		THAN SPECIAL TAXING UNIT OR COUNTY WITH POPULATION OF
126	128		500,000 OR MORE = [(LAST YEAR'S MAINTENANCE AND
127	129		OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL
128	130		VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT
129	131		RATE + UNUSED INCREMENT RATE)
130	132		; or
131	133		VOTER-APPROVAL TAX RATE FOR COUNTY WITH
132	134		POPULATION OF 500,000 OR MORE = [LAST YEAR'S
133	135		MAINTENANCE AND OPERATIONS EXPENSE / (CURRENT TOTAL
134	136		VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
135	137		where "sales tax loss rate" means a number expressed in dollars per
136	138		$100 of taxable value, calculated by dividing the amount of sales
137	139		and use tax revenue generated in the last four quarters for which
138	140		the information is available by the current total value and "last
139	141		year's maintenance and operations expense" means the amount spent
140	142		for maintenance and operations from property tax and additional
141	143		sales and use tax revenues in the preceding year.
142	144		SECTION 4. Section 26.042(a), Tax Code, is amended to read
143	145		as follows:
144	146		(a) Notwithstanding Sections 26.04 and 26.041, the
145	147		governing body of a taxing unit other than a school district, [or] a
146	148		special taxing unit, or a county with a population of 500,000 or
147	149		more may direct the designated officer or employee to calculate the
148	150		voter-approval tax rate of the taxing unit in the manner provided
149	151		for a special taxing unit if any part of the taxing unit is located
150	152		in an area declared a disaster area during the current tax year by
151	153		the governor or by the president of the United States and at least
152	154		one person is granted an exemption under Section 11.35 for property
153	155		located in the taxing unit. The designated officer or employee
154	156		shall continue calculating the voter-approval tax rate in the
155	157		manner provided by this subsection until the earlier of:
156	158		(1) the first tax year in which the total taxable value
157	159		of property taxable by the taxing unit as shown on the appraisal
158	160		roll for the taxing unit submitted by the assessor for the taxing
159	161		unit to the governing body exceeds the total taxable value of
160	162		property taxable by the taxing unit on January 1 of the tax year in
161	163		which the disaster occurred; or
162	164		(2) the third tax year after the tax year in which the
163	165		disaster occurred.
164	166		SECTION 5. Section 26.063(a), Tax Code, is amended to read
165	167		as follows:
166	168		(a) This section applies only to a taxing unit:
167	169		(1) that is:
168	170		(A) a taxing unit other than:
169	171		(i) a special taxing unit; or
170	172		(ii) a county with a population of 500,000
171	173		or more; or
172	174		(B) a municipality with a population of less than
173	175		30,000, regardless of whether it is a special taxing unit;
174	176		(2) that is required to provide notice under Section
175	177		26.06(b-1) or (b-3); and
176	178		(3) for which the de minimis rate exceeds the
177	179		voter-approval tax rate.
178	180		SECTION 6. Section 26.07(b), Tax Code, is amended to read as
179	181		follows:
180	182		(b) If the governing body of a special taxing unit, a county
181	183		with a population of 500,000 or more, or a municipality with a
182	184		population of 30,000 or more adopts a tax rate that exceeds the
183	185		taxing unit's voter-approval tax rate, or the governing body of a
184	186		taxing unit other than a special taxing unit or a county with a
185	187		population of 500,000 or more or of a municipality with a population
186	188		of less than 30,000 regardless of whether the municipality [it] is a
187	189		special taxing unit adopts a tax rate that exceeds the greater of
188	190		the taxing unit's voter-approval tax rate or de minimis rate, the
189	191		registered voters of the taxing unit at an election held for that
190	192		purpose must determine whether to approve the adopted tax rate.
191	193		SECTION 7. Section 26.075(a), Tax Code, is amended to read
192	194		as follows:
193	195		(a) This section applies only to a taxing unit other than:
194	196		(1) a special taxing unit;
195	197		(2) a school district; [or]
196	198		(3) a municipality with a population of 30,000 or
197	199		more; or
198	200		(4) a county with a population of 500,000 or more.
199	201		SECTION 8. This Act applies only to ad valorem taxes imposed
200	202		for an ad valorem tax year that begins on or after the effective
201	203		date of this Act.
202	204		SECTION 9. This Act takes effect January 1, 2026.