The bill, introduced by Hickland as H.B. No. 176, 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" from the formulas used to calculate the voter-approval tax rate for both special and non-special taxing units. Specifically, the bill modifies the definitions and calculations for the no-new-revenue tax rate and the voter-approval tax rate, ensuring that the unused increment rate is no longer factored into these calculations.

Additionally, the bill repeals several sections of the Local Government Code and Tax Code that previously included the unused increment rate, thereby streamlining the tax calculation process. 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 simplify tax rate calculations by eliminating the unused increment rate from the existing framework.

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