Texas Tax Code 26.013 – Unused Increment Rate
(a) In this section:
(1) “Actual tax rate” means a taxing unit‘s actual tax rate used to levy taxes in the applicable preceding tax year.
(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.
(2) “Voter-approval tax rate” means a taxing unit’s voter-approval tax rate in the applicable preceding tax year, as adopted by the taxing unit during the applicable preceding tax year, less the unused increment rate for that preceding tax year.
(3) “Year 1” means the third tax year preceding the current tax year.
(4) “Year 2” means the second tax year preceding the current tax year.
(5) “Year 3” means the tax year preceding the current tax year.
Terms Used In Texas Tax Code 26.013
- Tax year: means the calendar year. See Texas Tax Code 1.04
- Taxable value: means the amount determined by deducting from assessed value the amount of any applicable partial exemption. See Texas Tax Code 1.04
- Taxing unit: means a county, an incorporated city or town (including a home-rule city), a school district, a special district or authority (including a junior college district, a hospital district, a district created by or pursuant to the Water Code, a mosquito control district, a fire prevention district, or a noxious weed control district), or any other political unit of this state, whether created by or pursuant to the constitution or a local, special, or general law, that is authorized to impose and is imposing ad valorem taxes on property even if the governing body of another political unit determines the tax rate for the unit or otherwise governs its affairs. See Texas Tax Code 1.04
- Year: means 12 consecutive months. See Texas Government Code 311.005
(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