Bill Text: TX HB3594 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to an adjustment to the voter-approval tax rate for certain municipalities with low or decreasing debt.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-16 - Referred to Ways & Means [HB3594 Detail]

Download: Texas-2023-HB3594-Introduced.html
 
 
  By: Spiller H.B. No. 3594
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an adjustment to the voter-approval tax rate for
  certain municipalities with low or decreasing debt.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 26, Tax Code, is amended by adding
  Section 26.0445 to read as follows:
         Sec. 26.0445.  VOTER-APPROVAL RATE ADJUSTMENT FOR
  TRANSPORTATION INFRASTRUCTURE FINANCING IN A LOW-DEBT
  MUNICIPALIITY. (a) In the section:
               (1) "Low-debt municipality" means a municipality that:
                     (A)  adopted a tax rate in the preceding tax year
  for which the debt component comprised no more than 20 percent of
  the adopted rate; or
                     (B) for each of the preceding three tax years,
  adopted a tax rate for which the debt component comprised a lower
  percentage of the adopted rate than the percentage of the adopted
  rate the debt component comprised in the immediately preceding tax
  year.
               (2) "Transportation infrastructure" means the building
  and maintenance of highways, roads, sidewalks, airports, rail
  lines, bus stations, transit facilities, or other infrastructure
  designed to facilitate transportation.
         (b) A low-debt municipality may direct the designated
  officer or employee to add to the voter-approval tax rate the rate
  that, when applied to the municipality's current total taxable
  value, would impose an amount of taxes equal to the greater of:
               (1) one percent of the preceding year's maintenance and
  operations tax levy; or
               (2) $50,000.
         (c) A municipality that makes the adjustment provided by
  Subsection (b) shall place in a separate account in the municipal
  treasury an amount of money equal to the amount described by
  Subsection (b)(1) or (2), as applicable, that the municipality used
  to calculate the adjustment. Money in the account may be used only
  for transportation infrastructure costs.
         SECTION 2.  Section 26.0445, Tax Code, as added by this Act,
  applies to the calculation of the voter-approval tax rate for a
  municipality on for a tax year beginning on or after January 1,
  2024.
         SECTION 3.  This Act takes effect January 1, 2024.
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