Bill > SB10

This bill modifies the calculation of the voter-approval tax rate for different types of taxing units in Texas, specifically adjusting the tax rate multipliers and adding provisions for municipalities and counties with populations under 75,000. 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 calculation method is introduced, using a 1.035 multiplier for the maintenance and operations rate and allowing for an unused increment rate. For other taxing units, the multiplier is reduced from 1.035 to 1.025 for the maintenance and operations rate. The bill also updates related calculations for scenarios involving additional sales and use taxes and changes in tax collection, such as when a unit starts or stops collecting an additional sales tax. These changes aim to provide more nuanced and potentially more flexible tax rate calculations for different types of local government entities, with specific provisions tailored to the size and type of the taxing unit. The bill will take effect on January 1, 2026, and apply to ad valorem taxes imposed for tax years beginning on or after that date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=SB10