Texas SB2541 repeals provisions for calculating an unused increment rate and its use in certain ad valorem tax rates.

Texas SB2541 repeals provisions related to the calculation of an unused increment rate and its use in determining certain ad valorem tax rates. The bill amends and repeals sections in the Tax Code, Local Government Code, and Water Code. It specifies new formulas for calculating the no-new-revenue tax rate and voter-approval tax rate for taxing units, particularly when an additional sales and use tax is involved. The changes take effect for ad valorem taxes imposed starting January 1, 2026.

Texas SB2541 repeals provisions for calculating an unused increment rate and its use in certain ad valorem tax rates.

Texas SB2541 repeals provisions related to the calculation of an unused increment rate and its use in determining certain ad valorem tax rates. The bill amends and repeals sections in the Tax Code, Local Government Code, and Water Code. It specifies new formulas for calculating the no-new-revenue tax rate and voter-approval tax rate for taxing units, particularly when an additional sales and use tax is involved. The changes take effect for ad valorem taxes imposed starting January 1, 2026.