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.