HB5226 - Relating to the calculation of the no-new-revenue tax rate.

      By: Harrison H.B. No. 5226       A BILL TO BE ENTITLED   AN ACT   relating to the calculation of the no-new-revenue tax rate.          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   TAX [ 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 TAX [ 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 TAX [ 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 TAX     [ 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.  This Act takes effect September 1, 2025.