Tex. Tax Code § 26.0444 — TAX RATE ADJUSTMENT FOR DEFUNDING MUNICIPALITY

(a) In this section: (1) "Defunding municipality" means a municipality that is considered to be a defunding municipality for the current tax year under Chapter 109 , Local Government Code. (2) "Municipal public safety expenditure adjustment" means an amount equal to the positive difference, if any, between: (A) the amount of money appropriated for public safety in the budget adopted by the municipality for the preceding fiscal year; and (B) the amount of money spent by the municipality for public safety during the period for which the budget described by Paragraph (A) is in effect. (b) The no-new-revenue maintenance and operations rate for a defunding municipality is decreased by the rate computed according to the following formula: Municipal Public Safety Expenditure Adjustment / (Current Total Value - New Property Value) (c) A defunding municipality shall provide a notice of the decrease in the no-new-revenue maintenance and operations rate provided by this section in the information published under Section 26.04 (e) and, as applicable, in the notice prescribed by Section 26.06 or 26.061 . (d) For purposes of Subsection (a)(2), the amount of money appropriated for public safety and the amount of money spent by the municipality for public safety does not include: (1) any grant money received by the municipality during any fiscal year; or (2) any sales and use tax revenue received by the municipality for the purpose of financing a crime control and prevention district under Chapter 363 , Local Government Code, during any fiscal year. Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900 ), Sec. 3.01, eff. September 1, 2021.