S.B. No. 2532 amends the Texas Tax Code to establish new definitions and formulas for calculating the voter-approval tax rate specifically for "eligible coastal municipalities" that receive municipal hotel occupancy tax revenue and funds from local park boards of trustees. The bill introduces definitions for "eligible coastal municipality," "misspent hotel occupancy tax revenue," and "misspent hotel occupancy tax revenue rate." It specifies that the voter-approval tax rate for these municipalities will be calculated using a formula that incorporates the no-new-revenue maintenance and operations rate, current debt rate, unused increment rate, and the newly defined misspent hotel occupancy tax revenue rate.

Additionally, the bill modifies existing tax rate calculation formulas to include provisions for eligible coastal municipalities, replacing previous language that applied to special taxing units. The changes ensure that the voter-approval tax rate reflects the unique financial circumstances of these municipalities, particularly in relation to their hotel occupancy tax revenue. The act is set to take effect on January 1, 2026, and applies to ad valorem taxes imposed for tax years beginning on or after that date.

Statutes affected:
Introduced: Tax Code 26.012, Tax Code 26.04, Tax Code 26.041 (Tax Code 26)
Senate Committee Report: Tax Code 26.012, Tax Code 26.04, Tax Code 26.041 (Tax Code 26)
Engrossed: Tax Code 26.012, Tax Code 26.04, Tax Code 26.041 (Tax Code 26)
House Committee Report: Tax Code 26.012, Tax Code 26.04, Tax Code 26.041 (Tax Code 26)