Tax Rate Calculation

Truth-in-taxation requires most taxing units to calculate two rates after receiving a certify appraisal roll from the foreman appraiser — the no-new-revenue tax rate and the voter-approval tax rate. 1 The type of taxing unit determines which truth-in-taxation steps apply .
Cities, counties and hospital districts may levy a sales tax specifically to reduce place taxes. 2 These taxing units reduce the no-new-revenue tax pace in the first class merely and voter-approval tax rates every year thereafter to account for the place tax reduction paid for by the expected sales tax tax income .
Any taxing unit may increase its voter-approval tax rate for care and operations ( M & O ) funds used to pay for a adeptness, device or method acting for the control of air, water or state pollution. 3 The tax unit must provide its tax tax assessor with a copy of a decision letter from the Texas Commission on Environmental Quality stating the fortune of the price of the initiation for contamination manipulate. 4
A county may increase its no-new-revenue M & O rate, and consequently its voter-approval tax rate, for funds used to pay for the state condemnable department of justice mandate, destitute health worry, destitute defense and a county hospital. other taxing units that pay for destitute health caution may besides increase their no-new-revenue M & O rate.

by and large, tax rate calculations for urine districts are governed by the Water Code rather of the Tax Code. Water Code Sections 49.107 ( gigabyte ) and 49.108 ( fluorine ) provide that Tax Code Sections 26.04, 26.05 and 26.07 do not apply to taxing units created under Water Code Section 49.001 that levy and collect taxes under Water Code Section 49.107 or 49.108. information regarding water zone calculations can be found in the Water District Voter-Approval Tax Rate section below .
The Comptroller ’ s agency prescribes the tax pace calculation forms taxing units are required to use in determining tax rates. The taxing whole ’ s designated officeholder or employee may not submit the no-new-revenue tax rate and the voter-approval tax rate to the governing body of the taxing unit and the taxing whole may not adopt a tax rate until the delegate officer or employee certifies on the tax rate calculation forms that the designate officer or employee has accurately calculated the tax rates and has used the same values as the values shown in the taxing unit of measurement ‘s certified appraisal roll in performing the calculations. 5 School districts should seek legal advocate for interpretations of law regarding tax rate readiness, adoption and certification. 6
By providing the information below, the Comptroller ‘s function provides technical aid and not legal advice. Taxing units should consult legal guidance for interpretations of jurisprudence regarding tax rate calculations .

No-New-Revenue Tax Rate
The no-new-revenue tax rate enables the public to evaluate the kinship between taxes for the prior class and for the current year, based on a tax rate that would produce the lapp total of taxes if applied to the lapp properties taxed in both years. 7
To do this, several adjustments must be made. Those adjustments are found in Section 1 of the Comptroller ‘s tax rate calculation worksheets. The convention assumes that if values increase, the tax rate should decrease to create the lapp amount of tax income as it did the class earlier, or if values decrease, the tax rate will increase to produce the same measure of tax income. 8
The calculation action starts after the chief appraiser delivers to the taxing unit the certify appraisal roll ( or in some circumstances, the attest calculate of taxable prize ) and the estimate values of properties under protest. 9 The taxing unit ‘s tax tax assessor determines the watch data :

  • the total appraised and taxable value of property in the taxing unit;
  • the total appraised and taxable value of new improvements; and
  • the total taxable value of property annexed since the prior year.10

The tax tax assessor submits this information to the taxing whole ‘s governing body. The governing soundbox designates an officer or employee ( much the tax assessor-collector, but not necessarily ) to calculate the no-new-revenue tax rate and the voter-approval tax rate. 11
Calculating the no-new-revenue tax rate requires the anterior year ‘s taxes and the current class ‘s taxable value for property tax in both years. 12 Dividing the taxes by the rate ( and multiply by 100 to convert to a rate per $ 100 of value ) produces the no-new-revenue tax rate. 13 [ See Tax Rate Calculation Example 1 ( PDF ) ]
Taxing units that have properties that are valued differently for M & O taxes, such as school districts with Tax Code Chapter 313 limit agreements, must calculate the no-new-revenue M & O rate and the no-new-revenue debt service pace individually and add them in concert to create the no-new-revenue tax pace .
Last Year’s Taxes
To calculate the no-new-revenue tax rate, a taxing unit must inaugural determine its sum taxes for the prior year. The sum includes all supplements, court-ordered adjustments and most corrections that have occurred to the tax roll since the prior year ‘s certificate and tax pace adoption. It besides includes an alteration for the undisputed share of prize that is under chapter 42 attract as of July 25. 14
Tax Ceiling
If a county, city or junior college adopted the tax ceiling provision in the prior tax year or a prior tax year for homeowners age 65 or older or disabled, the taxing unit adjusts last year ‘s value by subtracting the prize of homesteads with tax ceilings. Subtracting the value lost because of the changes described above, results in the taxing unit ‘s adjusted taxes for the prior tax class. 15
prior Year Corrections
Taxing units required to refund taxes for tax years prior to the last class must add these refund taxes in last year ‘s recruit. 16 Taxing units include all types of refunds for years before the prior class — court decisions, corrections and payment errors — for tax years preceding the tax year .
The taxing unit ’ sulfur sum taxes for the prior class does not include corrections ordered pursuant to Tax Code part 25.25 ( five hundred ) for recently appraisal roll changes ordered by the appraisal review board ( ARB ). 17 If Tax Code incision 25.25 ( d ) corrections were mistakenly included in the tax rate calculations, the burdensome unit would calculate lower no-new-revenue and voter-approval tax rates for the tax unit .
court-ordered Adjustments
A taxing unit may increase the last tax class ‘s taxes to reflect lost taxes in the last tax year because a court overruled an ARB decision with a lower taxable prize. Including these refunds in last year ‘s levy results in higher no-new-revenue and voter-approval tax rates that give taxing units the ability to recapture gross removed from concluding year ‘s taxes to return money to taxpayers. Any court-ordered refunds made in the prior year must be included as a separate step in the tax rate calculation. 18
Lost Property
Taxing units must reduce last year ‘s full taxes for the amount of lost property levy. This is the amount of taxes levied on property measure that was taxable in the prior year, but not in the stream year. 19 Property value not taxed in the stream year may have been deannexed or the property is located in territory that has ceased to be a depart of the unit since the preceding year by the taxing unit. final class ’ mho taxes besides need to be reduced by the come of taxes on place that received a new exemption or qualified for special appraisal in the current class. property that first gear qualified for a fresh exemption does not include place that had an exemption amount lowered, freeport property or goods-in-transit property. 20
Tax Increment Financing ( TIF )
Taxing units other than school districts exclude the taxes paid into a TIF and the dowry of the captured appraised value that corresponds to the TIF payment in calculating both the no-new-revenue and voter-approval tax rates. 21
The captured measure value is the deviation in measure between the current measure value and the al-qaeda appraised respect. The base appraised measure is the respect that existed at the time the TIF was created. The taxes on the infrastructure appraised value stay with the taxing unit. only the helping of the captured appraised value that corresponds to the part of the tax increase paid into the TIF fund may be excluded in the tax rate calculations .
If a taxing whole does have TIF captured appraised rate in the current year, the taxing whole must reduce last year ’ s taxes by the amount of taxes paid into the TIF in the anterior year. If a taxing unit does not have TIF captured appraised prize in the current year to exclude from the no-new-revenue tax rate, then it does not have any TIF taxes to exclude in those calculations. This planning addresses the site when the taxable values in a TIF worsen, quite than continue to increase .
The TIF captured measure value to be deducted in the no-new-revenue tax rate calculation does not include any measure that was included as newly property rate in the calculations. 22 This planning prevents a taxing whole from including the same value in two different deductions in the calculations. [ visualize Tax Rate Calculation Example 3 ( PDF ) ]
Current Value of Property Taxed in the Prior Year
Before calculating its no-new-revenue tax rate, a taxing whole must adjust the current tax year place values. 23 The calculation begins with the total taxable value on the attest appraisal roll or license estimate for the current year and adds railway rolling stock certificate values, if applicable. The taxing unit then deducts the stream year ’ south captured measure value for which the taxes will be deposited into a TIF fund and the taxable value of property exempted for the current tax year for the first gear time as contamination see property. 24
Properties Under Protest
If a property ‘s value is under protest when the taxing unit receives the certify appraisal roll or attest calculate, the chief appraiser submits both the appraisal district and the taxpayer ‘s estimated values. 25 In calculating the tax rates, the taxing unit must add the sum value of properties under protest to the stream tax year property values by using the lower taxable value .
If the property owner did not estimate a value, the headman appraiser must estimate the consequence of the ARB entreaty. The following two rules govern this estimate .

  • If this year’s appraised value is the same or less than last year’s, the chief appraiser estimates the value that would be assigned if the property owner wins.
  • If this year’s value is greater than last year’s, the chief appraiser uses last year’s value; however, if it’s likely that the ARB will reduce the value, the chief appraiser should estimate the ARB value.26

Properties Not Included at Certification
The headman appraiser must give taxing units a list of taxable properties that the chief appraiser knows about, but that are not included on the certify appraisal roll out or in the certify estimate. These properties are not on the list of properties that are silent under protest. 27 The tax whole adds the respect of properties known, but not appraised for the current class .
The foreman appraiser includes the market value, appraised value and exemptions for the prior class and a reasonable estimate of the market respect, appraised value and exemptions for the stream class. A taxing whole ‘s tax tax assessor must use the lower of the commercialize, appraised or taxable prize for computing the taxing unit ‘s no-new-revenue and voter-approval tax rates. 28
Tax Ceilings
If a county, city or junior college adopted the tax ceiling provision in the prior tax year, the stream year ‘s values are adjusted by subtracting the current year ‘s values of homesteads with tax ceilings for both age 65 or older and disable homeowners. 29 The tax unit then subtracts the value of new property – property annex since Jan. 1 of the prior tax class and improvements new to the current class ‘s tax bun. 30
These steps adjust the stream year ‘s taxable values to include only property tax in the current tax class and the anterior tax year .
New Property Value
The taxing whole deducts new property prize from the current class ‘s measure values in the no-new-revenue tax pace calculation .
For real property, raw rate includes additions to existing improvements ( such as a garage ) or new separate structures added to a property containing existing improvements ( such as a company expansion ) made after Jan. 1 of the prior tax year. 31 alone the value of the individual new improvement is new value. The increase value on any existing structures is not modern value .
For personal property, new value includes merely the personal property that is located in a newly improvement and that entered the taxing whole after Jan. 1 of the anterior tax year. 32
New property measure besides includes property value in the current year that was previously nontaxable under an abatement agreement. 33 New property value for tax abatements applies to agreements that are expiring and to agreements that have a declining percentage or come of exemption each year .
Certain taxing units include value changes that increased a property ‘s land value from the preceding year as fresh property. This includes domain rate that increased from the anterior year because the land was subdivided by plat ; had urine, sewer or drainage lines installed ; or had pavement of undeveloped state. 34
New property does not include raw taxable rate subject to limit agreements under the Tax Increment Financing Act. 35 [ See Tax Rate Calculation Example 2 ( PDF ) ]
Consolidated Taxing Units
A taxing whole that was two or more taxing units in the last year handles the no-new-revenue and voter-approval tax rate calculations differently. The amalgamate tax unit combines the previous year ‘s taxes for each taxing unit and divides them by the entire values for the current year for the new consolidate tax unit of measurement. 36

Voter-Approval Tax Rate
The voter-approval tax rate is a deliberate utmost rate allowed by law without voter approval. The calculation splits the voter-approval tax pace into two discriminate components – a no-new-revenue M & O rate and a debt serve rate. 37 M & O includes such things as salaries, utilities and daily operations. Debt overhaul covers the concern and principal on bonds and other debt secured by property tax revenues. 38 The voter-approval tax rate is the kernel of no-new-revenue M & O and debt service rates, plus the unused increase rate, if applicable. 39
In most cases, the voter-approval tax rate exceeds the no-new-revenue tax rate, but occasionally decreases in a tax unit ‘s debt service will cause the no-new-revenue tax rate to be higher than the voter-approval tax rate .
If the accountant determines that a county has implemented a budget that proposes to reduce or reallocate funds from certain police enforcement agencies without voter approval, the county may not adopt a tax rate that exceeds the no-new-revenue tax rate unless they reverse the fund decrease or restore the allocate funds. 40
No-New-Revenue M&O Rate
School districts calculate the M & O helping of voter-approval rate by using the rate per $ 100 of taxable value that is equal to the zone ’ s maximal compress pace times $ 1.00 plus the greater of : the previous year ’ s enrichment rate or $ 0.05 per $ 100 of taxable prize. The school district ’ south stream debt rate is then added to equal the school zone voter-approval rate. 41 [ See Tax Rate Calculation Example 4 ( PDF ) ]
other taxing units calculate a no-new-revenue M & O rate by dividing the adjusted prior year ’ south levy by the adjusted anterior year ‘s entire taxable value used to calculate the no-new-revenue tax pace and multiplying it by the prior year ‘s M & O rate, and then dividing the intersection by the adjusted current year ‘s taxable value to get the current year ‘s no-new-revenue M & O rate.

Special Provisions
Some taxing units must perform special steps that allow them to adjust their voter-approval tax rates. many of these adjustments provide for a higher voter-approval tax rate .
County Criminal Justice Mandate
Counties may increase their voter-approval tax rate to replace funds spent to sign of the zodiac prisoners sentenced to express correctional facilities. 42 The amount spent by a county includes the monetary value during the previous 12 months to keep inmates in county-paid facilities after they have been sentenced to a Texas Department of Criminal Justice adeptness. 43
The county auditor certifies the total, based on information provided by the county sheriff, minus any amount received from the country for reimbursement. If the sum is the same or less, the county does not adjust the no-new-revenue M & O rate. The county continues to use the same 12-month period in subsequent years .
For more information on this mandate, contact the Texas Commission on Jail Standards .
Indigent Health Care Expenditures
A tax unit of measurement other than a school district can increase its voter-approval tax rate to generate funds it will spend for enhanced destitute health caution expenses. Enhanced expenditures are defined as the come spent by the tax unit for M & O costs of providing destitute health care at the increase minimal eligibility standards. The taxing unit of measurement deducts any state aid received for these expenses .
To calculate the no-new-revenue M & O rate for the stream tax year, a taxing unit ‘s enhanced destitute health concern expenditures for the anterior tax year are computed by subtracting the taxing units increased expenditures from July 1 of the year preceding last class through June 30 of concluding year and the total of any state aid from the enhance expenditures for the current year ( July 1 of the anterior class through June 30 of the current year ). Any remaining total is the increased total for the current class. 44
County Indigent Defenses Compensation Expenditures
A county that pays for destitute condemnable or civil refutation costs may incorporate that increased price to its voter-approval tax rate by converting the consumption to a rate and adding it to the county ’ s no-new-revenue M & O rate. The come of the consumption is equal to the come a county paid to provide for appoint advocate or to fund the operations of a public defender ‘s office for destitute individuals in condemnable or civil proceedings in the menstruation beginning July 1 of the year preceding the tax class for which the tax is adopted and ending June 30 of the tax class for which the rate is adopted, less the amount of any express grants received by the county during that time period. If the county expenditures exceed the total for the preceding tax class, the county may increase the no-new-revenue M & O rate by the lesser of ( 1 ) increased expenditures between two years or ( 2 ) 5 percentage of the preceding year ’ mho destitute expense compensation expenditures. 45
Eligible County Hospital Expenditures
A county or city that pays to maintain or operate an eligible county hospital may incorporate that increased price in its voter-approval rate by converting the expending to a rate and adding it to it ’ sulfur no-new-revenue M & O rate. This applies to an “ eligible county hospital ” which is located in an area not serviced by a hospital district and which is a hospital owned or leased by a county and operated under Health and Safety Code Chapter 263 ; or is owned or leased jointly by a city and a county and operated under Health and Safety Code Chapter 265. “ eligible county hospital expenditures ” means the come paid by a county or city in the period beginning July 1 of the preceding tax class and ending June 30 of the current year. If those expenditures exceed the sum for the preceding tax year, the city or county may increase the no-new-revenue M & O rate by the lesser of ( 1 ) the increased expenditures between the two years of ( 2 ) 8 percentage of the preceding tax year ’ s eligible expenditures. 46
Taxing Units Transferring a Function
If a taxing unit discontinues all of a department, function or action and transfers it to another taxing unit by written contract, the two taxing units must adjust their M & O rates for the transfer. The taxing unit discontinuing the serve subtracts the amount spend for the serve in the 12 months preceding the calendar month of the voter-approval tax rate calculation. If the taxing unit did not operate this affair for this 12-month period, the discontinuing tax unit uses the sum spent in the last full fiscal year in which the tax unit operated the function. The taxing unit receiving the function adds this amount to the voter-approval tax rate for the routine ‘s expenses. 47
Tax Increment Financing (TIF)
Taxing units early than educate districts exclude the taxes paid into a TIF and the captured appraised value that corresponds to the TIF payment in calculating the voter-approval tax rate. 48 The TIF captured measure measure to be deducted in the voter-approval tax pace calculation does not include any value that was included as new property value in the calculations. 49 This provision prevents a taxing unit of measurement from including the same value in two different deductions in the calculations .
Debt Service Rate
The debt service rate assign is the tax rate necessity to pay the taxing unit ‘s debt payments in the derive year. This separate of the calculation does not depend on the last year ‘s debt taxes at all ; it considers the total the taxing unit will need for the current class. 50 The debt avail fortune of the overall tax rate may rise angstrom high gear as necessity without triggering an election to approve the tax rate-because most debt is already approved by voters in bond elections .
Debt Payments
This step concerns the actual debt payments required for the stream fiscal year, not the last fiscal year ‘s debt. Remember that these are debt payments that the current class ‘s property taxes will pay. 51 A taxing whole that pays debt with early funds should not include those payments in the calculation .
School districts are required to consider the measure of facilities state help ( Existing Debt Allotment and/or Instructional Facilities Allotment ) they will receive in setting their local anesthetic debt military service rates. 52 Doing so reduces the sum of debt that school districts pay from local funds and produces a lower debt service tax rate. School districts that do not take the state fund into report will both rape state of matter police and levy rates that are excessively high gear .
Anticipated and Excess Debt Collections
A taxing unit that levies a debt service tax must consider anticipate collections in calculating the debt service component of its voter-approval tax rate. The collector for such a taxing whole must certify the current year ‘s certified anticipate debt collection rate and last class ‘s surfeit debt tax collections to the governing torso. 53
Adjustments to the current class ‘s debt serve rate include overindulgence collections from the previous year and the anticipated collection rate for the stream year. 54 The tax unit subtracts the sum of stopping point year ‘s overindulgence debt tax collections from the stream class ‘s debt payments and divides the result figure by the anticipated current year ‘s collection rate. 55 If the anticipated current year ‘s collection rate is less than 100 percentage, this will increase the sum of levy needed to pay debt avail. The taxing unit of measurement ‘s tax collector certifies the excess debt tax collections and the anticipated collection rate. 56
Estimated Debt Collection Rate for Current Tax Year
To find the estimated collection rate, the collector must first estimate the taxing unit ‘s entire debt collections from July 1 of the current class through June 30 of the adjacent class. 57 This estimate equals the full tax dollars that will be collected for stream debt taxes, delinquent taxes, extra appraisal rollback taxes ( e.g. agriculture, etc. ), penalties and matter to. 58 The anticipated solicitation pace of a taxing unit is a rate certifies by the collector and can be no lower than the lowest actual collection rate of the taxing unit for any of the preceding three years and may even exceed 100 %. 59
The collector compares this amount to what the taxing whole plans to levy for paying debt service in the stream fiscal year .
Dividing the estimated collections by the command debt payments gives the estimated collection pace. 60 For example, the collector projects the taxing unit will take in $ 950,000 in debt revenues before July 1 of following year. The taxing unit ‘s budget calls for it to levy $ 1 million in debt serve taxes for the stream year. The anticipate collection pace is $ 950,000 divided by $ 1 million, or 95 percentage .
Using an expect solicitation rate of less than 100 percentage in the calculations creates a higher debt levy. delinquent taxes from anterior years may generate more than a 100 percentage rate. 61
Excess Debt Tax Collections for Prior Year
The law requires the collector to compare the sum of taxes actually collected in current taxes, delinquent taxes, limited appraisal rollback taxes ( e.g. department of agriculture, etc. ), penalties and sake for last year ‘s debt from July 1 of final year through June 30 of the current class. The collector compares this collect sum with the sum that the collector estimated to collect according to end year ‘s anticipate collection rate. If the taxing unit took in more debt tax dollars than the estimated collection, the collector certifies the sum of excess debt tax collections to the governing body. 62
For exemplar, last year the collector projected a collection rate of 95 percentage and the governing body levied $ 500,000 in debt overhaul taxes. The expect debt tax collections last class were $ 475,000 ( .95 x $ 500,000 ). The collector determines whether the total sum of debt service taxes collected from July 1 of last year through June 30 of the current year exceeds $ 475,000 and determines the amount of any excess. If the taxing unit collected $ 485,000 in debt service taxes final year, the collector certifies overindulgence debt tax collections of $ 10,000. The taxing unit subtracts this $ 10,000 from the current class ‘s debt payments to lower the current class ‘s debt service rate .
Dividing the adjust debt payments by the stream year ‘s total taxable values, clock time $ 100, gives the debt service share of the voter-approval tax rate. [ meet Tax Rate Calculation Example 6 ( PDF ) ]
Unused Increment Rate
The fresh increase rate is the three-year rolling union of the remainder between the assume tax rate and the voter-approval tax rate and is entirely available to a taxing unit other than a especial tax unit. The unused increase rate can be used to increase the voter-approval tax rate, depending upon the tax rates adopted by the taxing unit of measurement in the former three years. For example, a city has the ability to “ bank ” any idle amounts below the voter-approval tax rate to use for up to three years. 63
For counties that implemented a proposed reduction or reallotment of certain police enforcement representation budgets without voter approval, the deviation between the actual tax rate and the voter-approval tax rate is considered to be zero. 64
For each tax year before the 2020 tax year, the remainder between the voter-approval tax rate and the actual tax rate is considered to be zero. 65
Total Voter-Approval Tax Rate
Totaling the M & O rate, the debt avail pace, and the idle increase rate, if applicable, gives the total voter-approval tax rate. 66
particular taxing units calculate the M & O rate by multiplying their no-new-revenue M & O rate by 1.08. [ see Tax Rate Calculation Example 5 ( PDF ) ]
Taxing units other than particular taxing units calculate the M & O rate by multiplying their no-new-revenue M & O rate by 1.035. The voter-approval tax rate for these taxing units besides includes the idle increase pace .
If the tax unit is affected by a disaster and certain requirements are met, the governing body of the taxing unit may direct the voter-approval tax rate to be calculated in the manner provided for a special tax unit of measurement. extra information on the calculation and borrowing of tax rates in a catastrophe area can be found under Emergency Revenue Rate section .

Additional Voter-Approval Protection for Pollution Control
A taxing unit or school zone may increase its voter-approval tax pace by the rate that generates the measure of funds the taxing unit spends for pollution control property, divided by the taxing unit ‘s current sum value. section 4 of the Comptroller ‘s Tax Rate Calculation Worksheet provides data needed for calculating the extra tax rate to add to the voter-approval tax rate .
A taxing unit of measurement may raise its rate for M & O funds used to pay for a facility, device or method acting for the control of atmosphere, water system or land contamination. 90 This includes any land, structure, build, facility, excavation, machinery, equipment or device that is used, constructed, acquired or installed wholly or partially to meet or exceed befoulment control condition requirements. 91 The taxing unit ‘s expenses are those necessary to meet the requirements of a let issued by the Texas Commission on Environmental Quality ( TCEQ ). 92
The TCEQ executive director issues a determination letter stating the parcel of the cost of the facility for contamination control. 93 The tax unit of measurement must provide its tax tax assessor with a copy of the TCEQ letter. 94 The tax tax assessor must accept the copy stating the cost of the pollution see property as conclusive attest and shall adjust the voter-approval tax rate. 95 Taxing units should check with TCEQ ‘s Air Quality Division for rules regarding this process .

De Minimis Rate
The de minimis pace is a tax rate calculation designed to give smaller taxing units, including cities with a population of less than 30,000, some flexibility to budget for extraordinary costs that may not be possible under the three and a half percentage voter-approval tax rate. The de minimis rate is the kernel of a taxing unit ’ sulfur no-new-revenue M & O rate ; the rate that, when applied to a taxing unit ’ s current total value, will impose an amount of taxes equal to $ 500,000 ; and a tax unit of measurement ’ sulfur current debt rate. 96
Voters may petition to hold a tax blessing election if the de minimis rate exceeds the voter-approval tax rate and the adopt tax rate is peer to or lower than the de minimis rate but higher than the voter-approval tax rate. 97 The voter-approval tax rate in this example may be calculated in one of two ways, depending on the qualifications of the taxing unit of measurement. These voter-approval tax rate calculations are either :

  • (a) a three and half percent increase to maintenance and operations plus the unused increment plus debt or
  • (b) if a city were also a special taxing unit with an eight percent rate increase to maintenance and operations plus debt.

Emergency Revenue Rate
A tax unit, other than a educate district or a particular tax whole, located in an area declared to be a disaster area by the Governor may, under certain circumstances, elect to calculate the voter-approval tax pace in the manner provided for a special tax whole. The taxing unit may continue to calculate the voter-approval tax rate using the multiplier of 1.08 until the disaster calculation time period ends .
In the tax year after the end of the catastrophe calculation time period, the taxing unit must calculate its hand brake gross rate and reduce its voter-approval tax rate for that year .
To do thus, the taxing unit must recalculate the voter-approval tax rate the tax whole would have calculated in the past year if it had generated gross based on an adopt tax rate using a multiplier of 1.035 in the year ( s ) following the catastrophe. 98

Water District Tax Rate
Water Code Section 49.001 defines a water district as any zone or authority created by Texas Constitution, Article XVI, Section 59 or Article III, Sections 52 ( barn ) ( 1 ) and ( 2 ), but does not include :

  • any navigation district or port authority created under general or special law or any conservation and reclamation district created by Chapter 62, Acts of the 52nd Legislature, 1951 (Article 8280-141, Vernon’s Texas Civil Statutes), or
  • any conservation and reclamation district governed by Water Code Chapter 36 unless a special law creating the district or amending the law creating the district states that Water Code Chapter 49 applies to that district.99

Water districts broadly do not come under provisions of the Tax Code, but rather are governed by the Water Code. Water Code Sections 49.107 ( g ) and 49.108 ( f ) provide that Tax Code Sections 26.04, 26.042, 26.05, 26.061, 26.07 and 26.075 do not apply to taxing units created under Water Code Section 49.001 that recruit and collect taxes under Water Code Section 49.107 or 49.108. Questions regarding the applicability of the Tax Code or the Water Code to a taxing unit should be directed to an lawyer or other appropriate rede .
Water districts consists of three categories for the purposes of Truth-in-Taxation. Water Code Section 49.23601 describes a “ gloomy Tax Rate District. ” This abject Tax Rate District must have an adopted rate of 2.5 cents or less per $ 100 of taxable measure. If a “ Low Tax Rate District ” adopts a compound debt service, contract and maintenance and operation rate that would impose more than 1.08 times the amount of tax imposed by the zone in the preceding class on an average homestead, an election must be held .
Water Code Section 49.23602 defines a Developed District as the one that financed, completed and issued bonds to pay for all land, works, improvements, facilities, plants, equipment and appliances necessity to serve at least 95 percentage of the project build-out of the district. This Developed District has a mandate tax election rate which consists of 1.035 times the amount of tax imposed by the district in the preceding year on the average residence homestead and the fresh increase rate. There is besides a voter-approval rate which is the kernel of the M & O tax rate plus a 3.5 percentage addition, fresh increase rate, debt pace and a contract rate. If the board adopts a rate that exceeds the compulsory tax election rate, it must hold an automatic election. These Developed Districts besides have a provision that allows the board of a district to calculate the voter-approval tax rate in the manner allowed for a broken Tax Rate District in the consequence of a declare calamity.

ultimately, Water Code Section 49.23603 describes a water system zone that has an M & O rate that is above 2.5 cents and is not a Developed District. This Developing District has the same calculations as the Low Rate District for its voter-approval rate. however, there is no provision for an automatic election if the governing body adopts a combine debt service, condense and sustenance and process rate that would impose more than 1.08 times the sum of tax imposed by the district in the preceding class on an average homestead. Voters will have to file a petition in accord with Tax Sections 26.075 and 26.081 in order to have an election to decide if the assume rate should be rollbacked to the voter-approval rate .
Voter-Approval Tax Rate
The voter-approval tax pace for modernize body of water districts is the current year ’ s debt service, condense and fresh increase tax rates plus the M & O pace that would impose no more than 1.035 times the come of M & O tax imposed by the water district in the preceding year on the median appraised value of a residence homestead in the water district. 100 The voter-approval rate for low tax rate and developing urine districts is the current year ‘s debt service and compress tax rates, plus M & O rate that would impose no more than 1.08 times the total of M & O tax imposed by the urine district in the preceding class on the average appraised value of a mansion homestead in the water district. 101 The average appraised value disregards any homestead exemption available alone to people with disabilities or those old age 65 or older. 102 If any character of a develop water zone is located in an area declared a calamity sphere during the current tax year by the governor or by the president of the united states, the display panel of the zone may calculate the voter-approval tax rate and determine whether an election is required in the manner provided for a abject Tax Rate District. 103

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