HB 9

89S20012 CJC-D
		By: Meyer
  H.B. No. 9
  A BILL TO BE ENTITLED
  AN ACT
  relating to the calculation of the voter-approval tax rate for
  certain taxing units.
         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 municipality or county with a
  population of less than 75,000 that is not a special taxing unit:
         VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE
  AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE +
  UNUSED INCREMENT RATE)
         ; or
                     (C)  for a taxing unit other than a special taxing
  unit or a municipality or county described by Paragraph (B):
         VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE
  AND OPERATIONS RATE x 1.025 [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 MAINTENANCE AND OPERATIONS RATE x
  1.08) + (CURRENT DEBT RATE - SALES TAX GAIN RATE)
  or
         VOTER-APPROVAL TAX RATE FOR MUNICIPALITY OR COUNTY
  WITH A POPULATION OF LESS THAN 75,000 THAT IS NOT A
  SPECIAL TAXING UNIT = (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 TAXING UNIT OTHER THAN
  SPECIAL TAXING UNIT OR MUNICIPALITY OR COUNTY WITH A
  POPULATION OF LESS THAN 75,000 THAT IS NOT A SPECIAL
  TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE AND
  OPERATIONS RATE x 1.025 [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 MUNICIPALITY OR COUNTY
  WITH A POPULATION OF LESS THAN 75,000 THAT IS NOT A
  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)
  or
         VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN
  SPECIAL TAXING UNIT OR MUNICIPALITY OR COUNTY WITH A
  POPULATION OF LESS THAN 75,000 THAT IS NOT A SPECIAL
  TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
  EXPENSE x 1.025 [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 MUNICIPALITY OR COUNTY
  WITH A POPULATION OF LESS THAN 75,000 THAT IS NOT A
  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)
  or
         VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN
  SPECIAL TAXING UNIT OR MUNICIPALITY OR COUNTY WITH A
  POPULATION OF LESS THAN 75,000 THAT IS NOT A SPECIAL
  TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
  EXPENSE x 1.025 [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.  Section 26.042(a-2), Tax Code, as added by H.B.
  30, Acts of the 89th Legislature, Regular Session, 2025, and
  effective January 1, 2026, is amended to read as follows:
         (a-2)  The voter-approval tax rate the governing body of the
  taxing unit may direct the designated officer or employee to
  calculate under Subsection (a) is equal to the lesser of:
               (1)  the voter-approval tax rate calculated in the
  manner provided for a special taxing unit; or
               (2)  the voter-approval tax rate calculated according
  to the following applicable formula:
                     (A)  for a municipality or county with a
  population of less than 75,000 that is not a special taxing unit:
         VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
  OPERATIONS RATE X 1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT
  RATE + DISASTER RELIEF RATE)
         ; or
                     (B)  for a taxing unit other than a municipality
  or county described by Paragraph (A):
         VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
  OPERATIONS RATE X 1.025 [1.035]) + (CURRENT DEBT RATE + UNUSED
  INCREMENT RATE + DISASTER RELIEF RATE)
         SECTION 4.  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 5.  This Act takes effect January 1, 2026.