LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 12, 2025 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2541 by Bettencourt (Relating to the repeal of provisions providing for the calculation of an unused increment rate and the use of that rate in calculating certain other ad valorem tax rates.), As Introduced No fiscal implication to the State is anticipated. This bill would repeal the unused increment rate and remove it from the calculation of certain voter-approval tax rates.Under current law, the unused increment rate is added to other components to calculate the voter-approval tax rate. The bill would remove the unused increment rate from the calculation, thus lowering the voter-approval tax rate (the maximum rate allowed by law to be imposed by a taxing unit without obtaining voter approval at an election). For taxing units that have an unused increment rate greater than zero, the voter-approval rate requiring an election would be lower. Local Government ImpactPassage of the bill would repeal the unused increment rate that is used to calculate the voter-approval tax rate. As a result, voter-approval tax rates could be reduced, which could result in a reduction in the amount of ad valorem tax revenue a unit of local government could generate without voter approval. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, SZ, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 12, 2025
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2541 by Bettencourt (Relating to the repeal of provisions providing for the calculation of an unused increment rate and the use of that rate in calculating certain other ad valorem tax rates.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB2541 by Bettencourt (Relating to the repeal of provisions providing for the calculation of an unused increment rate and the use of that rate in calculating certain other ad valorem tax rates.), As Introduced
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB2541 by Bettencourt (Relating to the repeal of provisions providing for the calculation of an unused increment rate and the use of that rate in calculating certain other ad valorem tax rates.), As Introduced
SB2541 by Bettencourt (Relating to the repeal of provisions providing for the calculation of an unused increment rate and the use of that rate in calculating certain other ad valorem tax rates.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
This bill would repeal the unused increment rate and remove it from the calculation of certain voter-approval tax rates.Under current law, the unused increment rate is added to other components to calculate the voter-approval tax rate. The bill would remove the unused increment rate from the calculation, thus lowering the voter-approval tax rate (the maximum rate allowed by law to be imposed by a taxing unit without obtaining voter approval at an election). For taxing units that have an unused increment rate greater than zero, the voter-approval rate requiring an election would be lower.
Local Government Impact
Passage of the bill would repeal the unused increment rate that is used to calculate the voter-approval tax rate. As a result, voter-approval tax rates could be reduced, which could result in a reduction in the amount of ad valorem tax revenue a unit of local government could generate without voter approval.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, SZ, SD, BRI
JMc, SZ, SD, BRI