Tex. Tax Code § 26.0501
LIMITATION ON TAX RATE OF DEFUNDING MUNICIPALITY
Texas · Texas Tax Code · Status: effective
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- Citation
- Tex. Tax Code § 26.0501, LIMITATION ON TAX RATE OF DEFUNDING MUNICIPALITY, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/574263
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Full text
(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, 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, 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.