bill making cities redo early tax rate math

The text as introduced · 709 words

89R17169 RDS-D

By: Patterson
H.B. No. 5161

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the officer or employee designated by

the governing body of a municipality to calculate certain ad

valorem tax rates of the municipality to recalculate those rates.

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

SECTION 1. Section 26.013(a)(2), Tax Code, is amended to

read as follows:

(2) "Voter-approval tax rate" means a taxing unit's

voter-approval tax rate in the applicable preceding tax year[ , as

adopted by the taxing unit during the applicable preceding tax

year, ] less the unused increment rate for that preceding tax year.

SECTION 2. Section 26.013, Tax Code, is amended by adding

Subsection (a-1) to read as follows:

(a-1) For purposes of this section, a voter-approval tax

rate that is recalculated under Section 26.04(c-3) is the taxing

unit's voter-approval tax rate in the applicable preceding tax

year.

SECTION 3. Section 26.04, Tax Code, is amended by adding

Subsection (c-3) and amending Subsections (d-1), (d-2), and (d-3)

to read as follows:

(c-3) Notwithstanding any other provision of this chapter,

the officer or employee designated by the governing body of a

municipality to calculate the municipality's no-new-revenue tax

rate and voter-approval tax rate for a tax year under Subsection

(c-2) shall recalculate those rates for that tax year after the

municipality receives the certified appraisal roll.

(d-1) The designated officer or employee shall use the tax

rate calculation forms prescribed by the comptroller under Section

5.07 in calculating or recalculating the no-new-revenue tax rate

and the voter-approval tax rate.

(d-2) The designated officer or employee may not submit the

no-new-revenue tax rate and the voter-approval tax rate to the

governing body of the taxing unit and the taxing unit may not adopt

a tax rate until the designated officer or employee certifies on the

tax rate calculation forms that the designated officer or employee

has accurately calculated the tax rates and has used values that are

the same as the values shown in the taxing unit's certified

appraisal roll in performing the calculations. The designated

officer or employee shall make the same certification required by

this subsection on the tax rate calculation forms used to

recalculate the tax rates under Subsection (c-3).

(d-3) As soon as practicable after the designated officer or

employee calculates or recalculates the no-new-revenue tax rate and

the voter-approval tax rate of the taxing unit, the designated

officer or employee shall submit the tax rate calculation forms

used in calculating or recalculating the rates to the county

assessor-collector for each county in which all or part of the

territory of the taxing unit is located.

SECTION 4. Section 26.16(d-1), Tax Code, is amended to read

as follows:

(d-1) In addition to posting the information described by

Subsection (a), the county assessor-collector shall post on the

Internet website of the county for each taxing unit all or part of

the territory of which is located in the county:

(1) the tax rate calculation forms used by the

designated officer or employee of each taxing unit to calculate or

recalculate the no-new-revenue and voter-approval tax rates of the

taxing unit for the most recent five tax years beginning with the

2020 tax year, as certified by the designated officer or employee

under Section 26.04(d-2); and

(2) the name and official contact information for each

member of the governing body of the taxing unit.

SECTION 5. Section 26.17(e), Tax Code, is amended to read as

follows:

(e) The officer or employee designated by the governing body

of each taxing unit in which the property is located to calculate

the no-new-revenue tax rate and the voter-approval tax rate for the

taxing unit must electronically incorporate into the database:

(1) the information described by Subsections (b)(5),

(6), (7), (12), and (13), as applicable, as the information becomes

available; [ and ]

(2) the tax rate calculation forms prepared under

Section 26.04(d-1) at the same time the designated officer or

employee submits the tax rates to the governing body of the taxing

unit under Section 26.04(e) ; and

(3) the tax rate calculation forms prepared under

Section 26.04(c-3) as soon as practicable after certifying the

forms .

SECTION 6. This Act takes effect September 1, 2025.