H.B. No. 107 introduces new provisions for municipal and county ad valorem tax relief by amending the Local Government Code and the Tax Code. It adds Section 140.014 to the Local Government Code, which defines terms such as "consumer price index," "inflation rate," "population growth rate," and "surplus revenue." The bill mandates that counties and municipalities use surplus revenue from the previous fiscal year to provide ad valorem tax relief in the current fiscal year, effectively reducing the tax burden on property owners. Additionally, it requires the comptroller to determine and publish the inflation rate by July 1 each year.

The bill also adds Section 26.046 to the Tax Code, which establishes an annual limit on the tax rate that counties or municipalities can adopt. This limit is calculated based on the total revenue received in the previous tax year, adjusted for population growth and inflation. However, it allows for exceptions if a county or municipality has pledged taxes for debt repayment, ensuring that adopting a lower rate would not impair their contractual obligations. The provisions of this act will apply to fiscal years and tax years beginning on or after its effective date.

Statutes affected:
Introduced: ()