By: Culberson H.B. No. 1615
73R2454 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the calculation of the school district ad valorem tax
1-3 rollback rate.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 26.012(7), (11), and (13), Tax Code, are
1-6 amended to read as follows:
1-7 (7) "Debt" means:
1-8 (A) a bond, certificate of obligation, or other
1-9 evidence of indebtedness owed by a taxing unit that is payable in
1-10 installments over a period of more than one year, not budgeted for
1-11 payment from maintenance and operations funds, <and> secured by a
1-12 pledge of property taxes, and, for a school district, authorized by
1-13 a majority of the voters of the district voting at an election held
1-14 for that purpose; or
1-15 (B) a payment made under contract to secure
1-16 indebtedness of a similar nature issued by another political
1-17 subdivision on behalf of the taxing unit.
1-18 (11) "Last year's debt levy" means the amount of taxes
1-19 that would be generated by multiplying the amount calculated as
1-20 "current total value-new property value" for the preceding year and
1-21 used as the divisor in calculating the published effective
1-22 maintenance and operations rate <total taxable value of property on
1-23 the appraisal roll> for the preceding year<, including all
1-24 appraisal roll supplements and corrections, as of the date of
2-1 calculation,> by the debt rate adopted by the governing body in the
2-2 preceding year under Section 26.05(b)(1) <of this code>.
2-3 (13) "Last year's levy" means the amount of taxes that
2-4 would be generated by multiplying the total tax rate adopted by the
2-5 governing body in the preceding year by the amount calculated as
2-6 "current total value-new property value" for the preceding year and
2-7 used as the divisor in calculating the published effective
2-8 maintenance and operations rate <total taxable value of property on
2-9 the appraisal roll> for the preceding year<, including all
2-10 appraisal roll supplements and corrections as of the date of the
2-11 calculation, except that last year's taxable value for a school
2-12 district excludes the total value of homesteads that qualified for
2-13 a tax limitation as provided by Section 11.26 of this code>.
2-14 SECTION 2. Sections 26.08(a), (e), (g), and (i), Tax Code,
2-15 are amended to read as follows:
2-16 (a) If the governing body of a school district adopts a rate
2-17 that exceeds the sum of the district's effective maintenance and
2-18 operations rate multiplied by 1.05<, the rate of $0.08,> and the
2-19 district's current debt rate, the qualified voters of the district
2-20 by petition may require that an election be held to determine
2-21 whether or not to limit the tax rate the governing body may adopt
2-22 for the following year. When increased expenditure of funds by a
2-23 school district is necessary to respond to a disaster, such as a
2-24 tornado, hurricane, flood, or other calamity (not including a
2-25 drought) which has impacted a school district and the governor has
2-26 requested federal disaster assistance for the area in which the
2-27 school district is located, a petition is not valid under this
3-1 section to repeal a tax increase adopted the next time the district
3-2 adopts a tax rate after the date the disaster occurs.
3-3 (e) If a majority of the qualified voters voting on the
3-4 question in the election favor the proposition, the governing body
3-5 may not adopt a tax rate in the following year that exceeds the
3-6 rollback tax rate calculated for that year using the following
3-7 formula:
3-8 FOR ELECTION YEAR) x 1.05 <+ $0.08>) + CURRENT DEBT RATE
3-9 where "election year" denotes amounts used in calculating the
3-10 rollback tax rate in the year in which the tax increase that
3-11 initiated the referendum occurred rather than the year in which the
3-12 calculation occurs.
3-13 (g) If a school district is certified by the commissioner of
3-14 education under Section 16.251(c), Education Code, to have been
3-15 subject to a reduction in total revenue for the school year ending
3-16 on August 31 of the tax year:
3-17 (1) the district's effective maintenance and
3-18 operations rate for the tax year is calculated as provided by
3-19 Section 26.012, except that last year's levy is reduced by the
3-20 amount of taxes imposed in the preceding year, if any, to offset
3-21 the amount of any reduction certified by the commissioner of
3-22 education under Section 16.251(c), Education Code, for the school
3-23 year ending on August 31 of the preceding year; and
3-24 (2) the district's rollback tax rate for the tax year
3-25 calculated as provided by <Section 26.04 or by> Subsection (e) <of
3-26 this section, as applicable,> is increased by the tax rate that, if
3-27 applied to the current total value for the school district, would
4-1 impose taxes in an amount equal to the amount of the reduction
4-2 certified by the commissioner of education under Section 16.251(c),
4-3 Education Code, for the school year ending on August 31 of the tax
4-4 year.
4-5 (i) If a school district is certified by the commissioner of
4-6 education under Section 16.254(e), Education Code, to have been
4-7 subject to a reduction in state funds for the school year ending on
4-8 August 31 of the tax year:
4-9 (1) the district's effective maintenance and
4-10 operations rate for the tax year is calculated as provided by
4-11 Section 26.012, except that last year's levy is reduced by the
4-12 amount of taxes imposed in the preceding year, if any, to offset
4-13 the amount of any reduction in state funds certified by the
4-14 commissioner of education under Section 16.254, Education Code, for
4-15 the school year ending on August 31 of the preceding year; and
4-16 (2) the district's rollback tax rate for the tax year
4-17 calculated as provided by <Section 26.04 or by> Subsection (e) <of
4-18 this section, as applicable,> is increased by the tax rate that, if
4-19 applied to the current total value for the school district, would
4-20 impose taxes in an amount equal to the amount of the reduction in
4-21 state funds certified by the commissioner of education under
4-22 Section 16.254, Education Code, for the school year ending on
4-23 August 31 of the tax year.
4-24 SECTION 3. Section 26.04(g), Tax Code, as amended by Section
4-25 1, Chapter 699, Acts of the 70th Legislature, Regular Session,
4-26 1987, and by Section 1, Chapter 988, Acts of the 70th Legislature,
4-27 Regular Session, 1987, is repealed.
5-1 SECTION 4. This Act takes effect January 1, 1994, and
5-2 applies only to a tax year that begins on or after that date. The
5-3 tax rate calculations for a tax year that began before the
5-4 effective date of this Act are covered by the law in effect when
5-5 the tax year began, and the former law is continued in effect for
5-6 that purpose.
5-7 SECTION 5. The importance of this legislation and the
5-8 crowded condition of the calendars in both houses create an
5-9 emergency and an imperative public necessity that the
5-10 constitutional rule requiring bills to be read on three several
5-11 days in each house be suspended, and this rule is hereby suspended.