Bill Text: TX SB1997 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the calculation of the ad valorem tax rate of a taxing unit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-21 - Referred to Local Government [SB1997 Detail]
Download: Texas-2023-SB1997-Introduced.html
2023S0266-T 03/07/23 | ||
By: Bettencourt | S.B. No. 1997 |
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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) + [ |
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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 [ |
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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 [ |
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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)] + [ |
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DEBT RATE [ |
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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 [ |
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[ |
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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[ |
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[ |
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(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[ |
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[ |
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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. |