Bill > HB9

This bill modifies the calculation of voter-approval tax rates for different types of taxing units in Texas, specifically adjusting the tax rate multipliers and creating new rate categories based on population size. For special taxing units, the voter-approval tax rate remains calculated by multiplying the no-new-revenue maintenance and operations rate by 1.08 and adding the current debt rate. For municipalities and counties with populations under 75,000 that are not special taxing units, a new category is introduced with a tax rate multiplier of 1.035, which also includes an unused increment rate. For all other taxing units, the tax rate multiplier is reduced from 1.035 to 1.025, and the calculation continues to include the current debt rate and unused increment rate. These changes apply to ad valorem (property) taxes for tax years beginning on or after January 1, 2026, and affect various scenarios such as initial implementation of sales taxes, years with additional sales taxes, and years when sales taxes are ceased. The bill aims to provide more nuanced tax rate calculations that account for different types and sizes of taxing units, potentially offering some tax relief or more flexible rate-setting for smaller municipalities and counties.