Sec. 26.0501.  LIMITATION ON TAX RATE OF DEFUNDING MUNICIPALITY.  (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.
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 3.01, eff. September 1, 2021.