lower tax trigger for border junior college districts

The text as introduced · 727 words

By: Muñoz
H.B. No. 4979

A BILL TO BE ENTITLED

AN ACT

relating to the calculation of the voter-approval tax rate of

certain junior college districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 26.012, Tax Code, is amended by adding

Subdivision (18-c) and amending Subdivision (19) to read as

follows:

(18-c) "Special junior college district" means a

junior college district:

(A) whose service area boundaries and taxing

district boundaries are identical; and

(B) that is located in at least one county

adjacent to an international border.

(19) "Special taxing unit" means:

(A) a taxing unit, other than a school district,

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 , including a

special 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 other than a

special junior college district :

VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND

OPERATIONS RATE x 1.08) + CURRENT DEBT RATE

; [ or ]

(B) for a special taxing unit that is a special

junior college district:

VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND

OPERATIONS RATE x 1.035) + CURRENT DEBT RATE

; or

(C) 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 3. 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 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 other than a special

junior college district 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 4. Section 26.075(b), Tax Code, is amended to read

as follows:

(b) This section applies to a taxing unit only in a tax year

in which the taxing unit's:

(1) de minimis rate exceeds the taxing unit's

voter-approval tax rate; and

(2) adopted tax rate is:

(A) equal to or lower than the taxing unit's de

minimis rate; and

(B) greater than the greater of the taxing

unit's:

(i) voter-approval tax rate calculated as

if the taxing unit were a special taxing unit other than a special

junior college district ; or

(ii) voter-approval tax rate.

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, 2026.