HB4949 - Relating to the calculation of the voter-approval tax rate of certain counties and the procedure for the adoption by such a county of a tax rate that exceeds that rate; making conforming changes.

      By: Muñoz H.B. No. 4949       A BILL TO BE ENTITLED   AN ACT   relating to the calculation of the voter-approval tax rate of   certain counties and the procedure for the adoption by such a county   of a tax rate that exceeds that rate; making conforming changes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 26.012(19), Tax Code, is amended to read   as follows:                (19)  "Special taxing unit" means:                      (A)  a taxing unit, other than a school district   or a county with a population of 500,000 or more , for which the   maintenance and operations tax rate proposed for the current tax   year is 2.5 cents or less per $100 of taxable value;                      (B)  a junior college district; or                      (C)  a hospital district.          SECTION 2.  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 or a county with a population of 500,000 or more :                VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE   MAINTENANCE AND OPERATIONS RATE x 1.035) + (CURRENT   DEBT RATE + UNUSED INCREMENT RATE)           ; or                       (C)     for a county with a population of 500,000 or   more:                 VOTER-APPROVAL TAX RATE   =   NO-NEW-REVENUE   MAINTENANCE AND OPERATIONS RATE   +   CURRENT DEBT RATE          SECTION 3.  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 OR COUNTY WITH POPULATION OF   500,000 OR MORE  = (NO-NEW-REVENUE MAINTENANCE AND   OPERATIONS RATE x 1.035) + (CURRENT DEBT   RATE + UNUSED INCREMENT RATE - SALES TAX GAIN RATE)   ; or                 VOTER-APPROVAL TAX RATE FOR COUNTY WITH   POPULATION OF 500,000 OR MORE   =   NO-NEW-REVENUE   MAINTENANCE AND OPERATIONS RATE   +   (CURRENT DEBT   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 OR COUNTY WITH POPULATION OF   500,000 OR MORE  = [(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)   ; or                 VOTER-APPROVAL TAX RATE FOR COUNTY WITH   POPULATION OF 500,000 OR MORE   =   [LAST YEAR'S   MAINTENANCE AND   OPERATIONS EXPENSE   /   (CURRENT TOTAL   VALUE   -   NEW PROPERTY VALUE)]   +   (CURRENT DEBT   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 OR COUNTY WITH POPULATION OF   500,000 OR MORE  = [(LAST YEAR'S MAINTENANCE AND   OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL   VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT   RATE + UNUSED INCREMENT RATE)   ; or                 VOTER-APPROVAL TAX RATE FOR COUNTY WITH   POPULATION OF 500,000 OR MORE   =   [LAST YEAR'S   MAINTENANCE AND   OPERATIONS EXPENSE   /   (CURRENT TOTAL   VALUE   -   NEW PROPERTY VALUE)]   +   CURRENT DEBT 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 4.  Section 26.042(a), Tax Code, is amended to read   as follows:          (a)  Notwithstanding Sections 26.04 and 26.041, the   governing body of a taxing unit other than a school district , [ or ] a   special taxing unit , or a county with a population of 500,000 or   more may direct the designated officer or employee to calculate the   voter-approval tax rate of the taxing unit in the manner provided   for a special taxing unit if any part of the taxing unit is located   in an area declared a disaster area during the current tax year by   the governor or by the president of the United States and at least   one person is granted an exemption under Section 11.35 for property   located in the taxing unit. The designated officer or employee   shall continue calculating the voter-approval tax rate in the   manner provided by this subsection until the earlier of:                (1)  the first tax year in which the total taxable value   of property taxable by the taxing unit as shown on the appraisal   roll for the taxing unit submitted by the assessor for the taxing   unit to the governing body exceeds the total taxable value of   property taxable by the taxing unit on January 1 of the tax year in   which the disaster occurred; or                (2)  the third tax year after the tax year in which the   disaster occurred.          SECTION 5.  Section 26.063(a), Tax Code, is amended to read   as follows:          (a)  This section applies only to a taxing unit:                (1)  that is:                      (A)  a taxing unit other than :                             (i)   a special taxing unit; or                             (ii)     a county with a population of 500,000   or more; or                      (B)  a municipality with a population of less than   30,000, regardless of whether it is a special taxing unit;                (2)  that is required to provide notice under Section   26.06(b-1) or (b-3); and                (3)  for which the de minimis rate exceeds the   voter-approval tax rate.          SECTION 6.  Section 26.07(b), Tax Code, is amended to read as   follows:          (b)  If the governing body of a special taxing unit , a county   with a population of 500,000 or more, or a municipality with a   population of 30,000 or more adopts a tax rate that exceeds the   taxing unit's voter-approval tax rate, or the governing body of a   taxing unit other than a special taxing unit or a county with a   population of 500,000 or more or of a municipality with a population   of less than 30,000 regardless of whether the municipality [ it ] is a   special taxing unit adopts a tax rate that exceeds the greater of   the taxing unit's voter-approval tax rate or de minimis rate, the   registered voters of the taxing un [Text truncated for display. 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