Texas 2025 - 89th Regular

Texas House Bill HB5596 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R15178 RDS-D
2	2	By: Leo Wilson H.B. No. 5596
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the calculation of the voter-approval tax rate for
10	10	certain municipalities that receive municipal hotel occupancy tax
11	11	revenue.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 26.012, Tax Code, is amended by adding
14	14	Subdivisions (9-a), (16-a), and (16-b) to read as follows:
15	15	(9-a) "Eligible coastal municipality" means a
16	16	municipality described by Section 351.001(3)(A) that has created a
17	17	park board of trustees under Section 306.011, Local Government
18	18	Code.
19	19	(16-a) "Misspent hotel occupancy tax revenue" means an
20	20	amount equal to the amount of revenue received under Chapter 351 by
21	21	an eligible coastal municipality during the preceding tax year
22	22	that:
23	23	(A) was not distributed to the municipality's
24	24	park board of trustees to be spent for a purpose authorized by
25	25	Chapter 351; and
26	26	(B) was spent by the municipality for any
27	27	purpose.
28	28	(16-b) "Misspent hotel occupancy tax revenue rate"
29	29	means the rate expressed in dollars per $100 of taxable value
30	30	calculated according to the following formula:
31	31	MISSPENT HOTEL OCCUPANCY TAX REVENUE RATE = MISSPENT
32	32	HOTEL OCCUPANCY TAX REVENUE / CURRENT TOTAL VALUE
33	33	SECTION 2. Section 26.04(c), Tax Code, is amended to read as
34	34	follows:
35	35	(c) After the assessor for the taxing unit submits the
36	36	appraisal roll for the taxing unit to the governing body of the
37	37	taxing unit as required by Subsection (b), an officer or employee
38	38	designated by the governing body shall calculate the no-new-revenue
39	39	tax rate and the voter-approval tax rate for the taxing unit, where:
40	40	(1) "No-new-revenue tax rate" means a rate expressed
41	41	in dollars per $100 of taxable value calculated according to the
42	42	following formula:
43	43	NO-NEW-REVENUE TAX RATE = (LAST YEAR'S LEVY - LOST
44	44	PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY
45	45	VALUE)
46	46	; and
47	47	(2) "Voter-approval tax rate" means a rate expressed
48	48	in dollars per $100 of taxable value calculated according to the
49	49	following applicable formula:
50	50	(A) for a special taxing unit:
51	51	VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE
52	52	AND OPERATIONS RATE x 1.08) + CURRENT DEBT RATE
53	53	; [or]
54	54	(B) for an eligible coastal municipality:
55	55	VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE
56	56	AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE +
57	57	UNUSED INCREMENT RATE - MISSPENT HOTEL OCCUPANCY TAX
58	58	REVENUE RATE)
59	59	; or
60	60	(C) for a taxing unit other than a special taxing
61	61	unit or eligible coastal municipality:
62	62	VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE
63	63	AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE +
64	64	UNUSED INCREMENT RATE)
65	65	SECTION 3. Sections 26.041(a), (b), and (c), Tax Code, are
66	66	amended to read as follows:
67	67	(a) In the first year in which an additional sales and use
68	68	tax is required to be collected, the no-new-revenue tax rate and
69	69	voter-approval tax rate for the taxing unit are calculated
70	70	according to the following formulas:
71	71	NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - LOST
72	72	PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY
73	73	VALUE)] - SALES TAX GAIN RATE
74	74	and
75	75	VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT =
76	76	(NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x
77	77	1.08) + (CURRENT DEBT RATE - SALES TAX GAIN RATE)
78	78	or
79	79	VOTER-APPROVAL TAX RATE FOR ELIGIBLE COASTAL
80	80	MUNICIPALITY = (NO-NEW-REVENUE MAINTENANCE AND
81	81	OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + UNUSED
82	82	INCREMENT RATE - SALES TAX GAIN RATE - MISSPENT HOTEL
83	83	OCCUPANCY TAX REVENUE RATE)
84	84	or
85	85	VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN
86	86	SPECIAL TAXING UNIT OR ELIGIBLE COASTAL MUNICIPALITY =
87	87	(NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x
88	88	1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT RATE -
89	89	SALES TAX GAIN RATE)
90	90	where "sales tax gain rate" means a number expressed in dollars per
91	91	$100 of taxable value, calculated by dividing the revenue that will
92	92	be generated by the additional sales and use tax in the following
93	93	year as calculated under Subsection (d) by the current total value.
94	94	(b) Except as provided by Subsections (a) and (c), in a year
95	95	in which a taxing unit imposes an additional sales and use tax, the
96	96	voter-approval tax rate for the taxing unit is calculated according
97	97	to the following formula, regardless of whether the taxing unit
98	98	levied a property tax in the preceding year:
99	99	VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT =
100	100	[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x
101	101	1.08) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
102	102	(CURRENT DEBT RATE - SALES TAX REVENUE RATE)
103	103	or
104	104	VOTER-APPROVAL TAX RATE FOR ELIGIBLE COASTAL
105	105	MUNICIPALITY = [(LAST YEAR'S MAINTENANCE AND
106	106	OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE -
107	107	NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED
108	108	INCREMENT RATE - SALES TAX REVENUE RATE - MISSPENT
109	109	HOTEL OCCUPANCY TAX REVENUE RATE)
110	110	or
111	111	VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN
112	112	SPECIAL TAXING UNIT OR ELIGIBLE COASTAL MUNICIPALITY =
113	113	[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x
114	114	1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
115	115	(CURRENT DEBT RATE + UNUSED INCREMENT RATE - SALES TAX
116	116	REVENUE RATE)
117	117	where "last year's maintenance and operations expense" means the
118	118	amount spent for maintenance and operations from property tax and
119	119	additional sales and use tax revenues in the preceding year, and
120	120	"sales tax revenue rate" means a number expressed in dollars per
121	121	$100 of taxable value, calculated by dividing the revenue that will
122	122	be generated by the additional sales and use tax in the current year
123	123	as calculated under Subsection (d) by the current total value.
124	124	(c) In a year in which a taxing unit that has been imposing
125	125	an additional sales and use tax ceases to impose an additional sales
126	126	and use tax, the no-new-revenue tax rate and voter-approval tax
127	127	rate for the taxing unit are calculated according to the following
128	128	formulas:
129	129	NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY -
130	130	LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
131	131	PROPERTY VALUE)] + SALES TAX LOSS RATE
132	132	and
133	133	VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT =
134	134	[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x
135	135	1.08) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
136	136	CURRENT DEBT RATE
137	137	or
138	138	VOTER-APPROVAL TAX RATE FOR ELIGIBLE COASTAL
139	139	MUNICIPALITY = [(LAST YEAR'S MAINTENANCE AND
140	140	OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE -
141	141	NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED
142	142	INCREMENT RATE - MISSPENT HOTEL OCCUPANCY TAX REVENUE
143	143	RATE)
144	144	or
145	145	VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN
146	146	SPECIAL TAXING UNIT OR ELIGIBLE COASTAL MUNICIPALITY =
147	147	[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x
148	148	1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
149	149	(CURRENT DEBT RATE + UNUSED INCREMENT RATE)
150	150	where "sales tax loss rate" means a number expressed in dollars per
151	151	$100 of taxable value, calculated by dividing the amount of sales
152	152	and use tax revenue generated in the last four quarters for which
153	153	the information is available by the current total value and "last
154	154	year's maintenance and operations expense" means the amount spent
155	155	for maintenance and operations from property tax and additional
156	156	sales and use tax revenues in the preceding year.
157	157	SECTION 4. This Act applies only to ad valorem taxes imposed
158	158	for an ad valorem tax year that begins on or after the effective
159	159	date of this Act.
160	160	SECTION 5. This Act takes effect January 1, 2026.