S.B. No. 2532 proposes amendments to the Texas Tax Code regarding the calculation of 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 new definitions, including "eligible coastal municipality," which refers to municipalities that have established a park board of trustees, and "misspent hotel occupancy tax revenue," which encompasses funds improperly utilized by these municipalities. Additionally, it defines the "misspent hotel occupancy tax revenue rate" and outlines the formula for calculating this rate based on the total value of the municipality.

The bill also modifies the existing formulas for calculating the voter-approval tax rate for eligible coastal municipalities, replacing the previous method with a new formula that accounts for the misspent hotel occupancy tax revenue. This includes adjustments to the no-new-revenue maintenance and operations rate and the current debt rate. The changes will take effect on January 1, 2026, and will apply 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)