The bill, introduced by Representative Hickland, aims to repeal provisions related to the calculation of an unused increment rate and its application in determining certain ad valorem tax rates. Key amendments include the removal of references to the unused increment rate in the formulas for calculating the voter-approval tax rate for both special and non-special taxing units. Specifically, the bill modifies Section 26.04(c) of the Tax Code to eliminate the unused increment rate from the voter-approval tax rate calculations, thereby simplifying the tax rate determination process.

Additionally, the bill repeals several sections of the Local Government Code and the Tax Code that previously included the unused increment rate, further streamlining the tax calculation framework. The changes are set to take effect on January 1, 2026, and will apply to ad valorem taxes imposed for tax years beginning on or after that date. Overall, the bill seeks to clarify and simplify the tax rate calculation process for taxing units in Texas.

Statutes affected:
Introduced: Tax Code 26.04, Tax Code 26.041, Water Code 49.23602 (Water Code 49, Tax Code 26)