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A BILL TO BE ENTITLED
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AN ACT
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relating to an adjustment to the voter-approval tax rate for |
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certain municipalities with low or decreasing debt. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 26, Tax Code, is amended by adding |
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Section 26.0445 to read as follows: |
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Sec. 26.0445. VOTER-APPROVAL RATE ADJUSTMENT FOR |
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TRANSPORTATION INFRASTRUCTURE FINANCING IN A LOW-DEBT |
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MUNICIPALIITY. (a) In the section: |
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(1) "Low-debt municipality" means a municipality that: |
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(A) adopted a tax rate in the preceding tax year |
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for which the debt component comprised no more than 20 percent of |
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the adopted rate; or |
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(B) for each of the preceding three tax years, |
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adopted a tax rate for which the debt component comprised a lower |
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percentage of the adopted rate than the percentage of the adopted |
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rate the debt component comprised in the immediately preceding tax |
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year. |
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(2) "Transportation infrastructure" means the building |
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and maintenance of highways, roads, sidewalks, airports, rail |
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lines, bus stations, transit facilities, or other infrastructure |
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designed to facilitate transportation. |
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(b) A low-debt municipality may direct the designated |
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officer or employee to add to the voter-approval tax rate the rate |
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that, when applied to the municipality's current total taxable |
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value, would impose an amount of taxes equal to the greater of: |
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(1) one percent of the preceding year's maintenance and |
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operations tax levy; or |
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(2) $50,000. |
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(c) A municipality that makes the adjustment provided by |
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Subsection (b) shall place in a separate account in the municipal |
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treasury an amount of money equal to the amount described by |
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Subsection (b)(1) or (2), as applicable, that the municipality used |
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to calculate the adjustment. Money in the account may be used only |
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for transportation infrastructure costs. |
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SECTION 2. Section 26.0445, Tax Code, as added by this Act, |
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applies to the calculation of the voter-approval tax rate for a |
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municipality on for a tax year beginning on or after January 1, |
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2024. |
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SECTION 3. This Act takes effect January 1, 2024. |