Tex. Tax Code Section 26.0501
Limitation on Tax Rate of Defunding Municipality

(a)

In this section, “defunding municipality” means a municipality that is considered to be a defunding municipality for the current tax year under Chapter 109 (Determination of Defunding Municipalities), Local Government Code.

(b)

Notwithstanding any other provision of this chapter or other law, the governing body of a defunding municipality may not adopt a tax rate for the current tax year that exceeds the lesser of the defunding municipality’s no-new-revenue tax rate or voter-approval tax rate for that tax year.

(c)

For purposes of making the calculation required under Section 26.013 (Unused Increment Rate), in a tax year in which a municipality is a defunding municipality, the difference between the municipality’s actual tax rate and voter-approval tax rate is considered to be zero.
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 3.01, eff. September 1, 2021.

Source: Section 26.0501 — Limitation on Tax Rate of Defunding Municipality, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­26.­htm#26.­0501 (accessed Apr. 20, 2024).

26.01
Submission of Rolls to Taxing Units 26.02
Assessment Ratios Prohibited 26.03
Treatment of Captured Appraised Value and Tax Increment 26.04
Submission of Roll to Governing Body 26.05
Tax Rate 26.06
Notice, Hearing, and Vote on Tax Increase 26.07
Automatic Election to Approve Tax Rate of Taxing Unit Other than School District 26.08
Automatic Election to Approve Tax Rate of School District 26.09
Calculation of Tax 26.10
Prorating Taxes--loss of Exemption 26.11
Prorating Taxes--acquisition by Government 26.012
Definitions 26.12
Units Created During Tax Year 26.013
Unused Increment Rate 26.13
Taxing Unit Consolidation During Tax Year 26.14
Annexation of Property During Tax Year 26.15
Correction of Tax Roll 26.16
Posting of Tax-related Information on County’s Internet Website 26.17
Database of Property-tax-related Information 26.18
Posting of Tax Rate and Budget Information by Taxing Unit on Website 26.041
Tax Rate of Unit Imposing Additional Sales and Use Tax 26.042
Calculation and Adoption of Certain Tax Rates in Disaster Area 26.043
Voter-approval and No-new-revenue Tax Rates in City Imposing Mass Transit Sales and Use Tax 26.044
No-new-revenue Tax Rate to Pay for State Criminal Justice Mandate 26.045
Voter-approval Tax Rate Relief for Pollution Control Requirements 26.051
Evidence of Unrecorded Tax Rate Adoption 26.052
Simplified Tax Rate Notice for Taxing Units with Low Tax Levies 26.061
Notice of Meeting to Vote on Proposed Tax Rate that Does Not Exceed Lower of No-new-revenue or Voter-approval Tax Rate 26.062
Additional Information to Be Included in Tax Rate Notice 26.063
Alternate Provisions for Tax Rate Notice When De Minimis Rate Exceeds Voter-approval Tax Rate 26.065
Supplemental Notice of Hearing on Tax Rate Increase 26.075
Petition Election to Reduce Tax Rate of Taxing Unit Other than School District 26.081
Petition Signatures 26.085
Election to Limit Dedication of School Funds to Junior College 26.111
Prorating Taxes--acquisition by Charitable Organization 26.112
Calculation of Taxes on Residence Homestead of Certain Persons 26.113
Prorating Taxes--acquisition by Nonprofit Organization 26.135
Tax Dates for Certain School Districts 26.175
Property Tax Database Locator Website 26.0441
Tax Rate Adjustment for Indigent Health Care 26.0442
Tax Rate Adjustment for County Indigent Defense Compensation Expenditures 26.0443
Tax Rate Adjustment for Eligible County Hospital Expenditures 26.0444
Tax Rate Adjustment for Defunding Municipality 26.0501
Limitation on Tax Rate of Defunding Municipality 26.1115
Calculation of Taxes on Residence Homestead Generally 26.1127
Calculation of Taxes on Donated Residence Homestead of Disabled Veteran or Surviving Spouse of Disabled Veteran
Green check means up to date. Up to date

Accessed:
Apr. 20, 2024

§ 26.0501’s source at texas​.gov