S.B. No. 9 amends the Texas Tax Code to revise the calculation of the voter-approval tax rate for certain taxing units, particularly municipalities and counties with populations under 75,000. The bill introduces new formulas for calculating the voter-approval tax rate, which now includes an "unused increment rate" for these smaller units. Specifically, the voter-approval tax rate for these municipalities or counties will be calculated as the no-new-revenue maintenance and operations rate multiplied by 1.035, plus the current debt rate and the unused increment rate. For other taxing units, the rate will be calculated using a multiplier of 1.025 instead of the previous 1.035.

Additionally, the bill clarifies the definitions and calculations related to the no-new-revenue tax rate and voter-approval tax rate, including adjustments for sales tax gains and losses. It specifies that the voter-approval tax rate for municipalities or counties with populations under 75,000 will also account for disaster relief rates. 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 26.04, Tax Code 26.041 (Tax Code 26)
Senate Committee Report: Tax Code 26.04, Tax Code 26.041 (Tax Code 26)
Engrossed: Tax Code 26.04, Tax Code 26.041 (Tax Code 26)