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  S.B. No. 1999
 
 
 
 
AN ACT
  relating to the calculation of the unused increment rate of a taxing
  unit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 26.013(a), Tax Code, is amended by
  adding Subdivisions (1-a) and (1-b) to read as follows:
               (1-a)  "Foregone revenue amount" means the greater of:
                     (A)  zero; or 
                     (B)  the amount expressed in dollars calculated
  according to the following formula:
         FOREGONE REVENUE AMOUNT = (VOTER-APPROVAL TAX RATE - ACTUAL
  TAX RATE) x PRECEDING TOTAL VALUE
               (1-b)  "Preceding total value" means a taxing unit's
  current total value in the applicable preceding tax year.
         SECTION 2.  Section 26.013(b), Tax Code, is amended to read
  as follows:
         (b)  In this chapter, "unused increment rate" means the
  greater of:
               (1)  zero; or
               (2)  the rate expressed in dollars per $100 of taxable
  value calculated according to the following formula:
         UNUSED INCREMENT RATE = (YEAR 1 FOREGONE REVENUE AMOUNT +
  YEAR 2 FOREGONE REVENUE AMOUNT + YEAR 3 FOREGONE REVENUE AMOUNT) /
  CURRENT TOTAL VALUE [VOTER-APPROVAL TAX RATE - YEAR 1 ACTUAL TAX
  RATE) + (YEAR 2 VOTER-APPROVAL TAX RATE - YEAR 2 ACTUAL TAX RATE) +
  (YEAR 3 VOTER-APPROVAL TAX RATE - YEAR 3 ACTUAL TAX RATE)]
         SECTION 3.  This Act takes effect January 1, 2024.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1999 passed the Senate on
  April 27, 2023, by the following vote:  Yeas 29, Nays 2.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1999 passed the House on
  May 24, 2023, by the following vote:  Yeas 134, Nays 4,
  one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor