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A BILL TO BE ENTITLED
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AN ACT
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relating to the definition of debt for the purposes of calculating |
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certain ad valorem tax rates of a taxing unit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.012(7), Tax Code, is amended to read |
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as follows: |
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(7) "Debt" means a bond, warrant, certificate of |
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obligation, or other evidence of indebtedness owed by a taxing unit |
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that has been approved at an election and is payable solely from |
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property taxes in installments over a period of more than one year, |
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not budgeted for payment from maintenance and operations funds, and |
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secured by a pledge of property taxes, or a payment made under |
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contract to secure indebtedness of a similar nature issued by |
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another political subdivision on behalf of the taxing unit. |
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SECTION 2. The change in law made by this Act applies only |
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to a bond, warrant, certificate of obligation, or other evidence of |
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indebtedness for which the ordinance, order, or resolution |
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authorizing issuance was adopted by the governing body of the |
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taxing unit on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |