Bill Text: TX SB1997 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to the calculation of the ad valorem tax rate of a taxing unit.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2023-03-21 - Referred to Local Government [SB1997 Detail]

Download: Texas-2023-SB1997-Introduced.html

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2023S0266-T 03/07/23
By: Bettencourt S.B. No. 1997

A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the ad valorem tax rate of a taxing
unit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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:
VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
OPERATIONS RATE x 1.035) + [(]CURRENT DEBT RATE [+ UNUSED INCREMENT
RATE)]
SECTION 2. 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 = (NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x
1.035) + (CURRENT DEBT RATE [+ UNUSED INCREMENT 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 = [(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)
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 = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x
1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + [(]CURRENT
DEBT RATE [+ UNUSED INCREMENT 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 3. Sections 49.23602(a)(2) and (4), Water Code, are
amended to read as follows:
(2) "Mandatory tax election rate" means [the rate
equal to the sum of the following tax rates for the district:
[(A)] the rate that would impose 1.035 times the
amount of tax imposed by the district in the preceding year on a
residence homestead appraised at the average appraised value of a
residence homestead in the district in that year, disregarding any
homestead exemption available only to disabled persons or persons
65 years of age or older[; and
[(B) the unused increment rate].
(4) "Voter-approval tax rate" means the rate equal to
the sum of the following tax rates for the district:
(A) the current year's debt service tax rate;
(B) the current year's contract tax rate; and
(C) the operation and maintenance tax rate that
would impose 1.035 times the amount of the operation and
maintenance tax imposed by the district in the preceding year on a
residence homestead appraised at the average appraised value of a
residence homestead in the district in that year, disregarding any
homestead exemption available only to disabled persons or persons
65 years of age or older[; and
[(D) the unused increment rate].
SECTION 4. The following provisions are repealed:
(1) Section 120.007(d), Local Government Code;
(2) Section 26.013, Tax Code;
(3) Section 26.0501(c), Tax Code; and
(4) Section 49.23602(a)(3), Water Code.
SECTION 5. 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 6. This Act takes effect January 1, 2024.