By: Armbrister S.B. No. 228
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the effect of a state or federal mandate on local ad
1-2 valorem tax rates.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 26, Tax Code, is amended by amending
1-5 Section 26.04(e) to read as follows:
1-6 (e) By August 7 or as soon thereafter as practicable, the
1-7 designated officer or employee shall submit the rates to the
1-8 governing body. He shall publish in a newspaper in the form
1-9 prescribed by the comptroller:
1-10 (1) the effective tax rate, the rollback tax rate, and
1-11 an explanation of how they were calculated;
1-12 (2) the estimated amount of interest and sinking fund
1-13 balances and the estimated amount of maintenance and operation or
1-14 general fund balances remaining at the end of the current fiscal
1-15 year that are not encumbered with or by corresponding existing debt
1-16 obligation, except that for a school district, estimated funds
1-17 necessary for the operation of the district prior to the receipt of
1-18 the first state education aid payment in the succeeding school year
1-19 shall be subtracted from the estimated fund balances;
1-20 (3) a schedule of the unit's debt obligations showing:
1-21 (A) the amount of principal and interest that
1-22 will be paid to service the unit's debts in the next year from
1-23 property tax revenue, including payments of lawfully incurred
2-1 contractual obligations providing security for the payment of the
2-2 principal of and interest on bonds and other evidences of
2-3 indebtedness issued on behalf of the unit by another political
2-4 subdivision;
2-5 (B) the amount by which taxes imposed for debt
2-6 are to be increased because of the unit's anticipated collection
2-7 rate; and
2-8 (C) the total of the amounts listed in
2-9 Paragraphs (A)-(B), less any amount collected in excess of the
2-10 previous year's anticipated collections certified as provided in
2-11 Subsection (b) of this section; <and>
2-12 (4) the amount of additional sales and use tax revenue
2-13 anticipated in calculations under Section 26.041 of this code;
2-14 (5) the estimated cost of complying with state or
2-15 federal mandates under Section 26.045, if applicable; and
2-16 (6) the mandate cost rate under Section 26.045, if
2-17 applicable, that is required to cover the cost of compliance with
2-18 state or federal mandates.
2-19 SECTION 2. Chapter 26, Tax Code, is amended by adding
2-20 Section 26.045 to read as follows:
2-21 Sec. 26.045. ROLLBACK RATE RELIEF TO PAY FOR NEW STATE OR
2-22 FEDERAL MANDATE. (a) The first time that a municipality or county
2-23 implements a state or federal mandate and each successive year
2-24 thereafter that the mandate is in effect, the rollback rate for the
2-25 municipality or county is increased by the rate that, if applied to
3-1 the total current value, would impose an amount of taxes equal to
3-2 the amount the municipality or county spent out of its maintenance
3-3 and operation funds under Section 26.012(16) to comply with the
3-4 state or federal mandate during the preceding year. Such rate
3-5 shall be referred to as the "mandate cost rate."
3-6 (b) In this section, "state or federal mandate" means a
3-7 requirement imposed by state statute or state agency rule or
3-8 federal statute or federal agency rule that requires a municipality
3-9 or county to implement a program or phase or tier of a program or
3-10 carry out a function that:
3-11 (1) the municipality or county did not implement or
3-12 carry out before the application of the statute or rule to the
3-13 municipality or county; and
3-14 (2) the municipality or county would not be required
3-15 to implement or carry out in the absence of the statute or rule.
3-16 (c) The budget officer of the municipality or county shall
3-17 calculate the mandate cost rate and the rate shall be approved by
3-18 the governing body of the municipality or county when the tax rate
3-19 is adopted.
3-20 (d) The municipality or county shall include in the
3-21 information published under Section 26.04(e) and under Section
3-22 26.06(b)(2) the cost of complying with state and federal mandates,
3-23 a brief description of the state or federal mandates, and the
3-24 mandate cost rate required to cover the cost of these mandates.
3-25 SECTION 3. Chapter 102 of the Local Government Code is
4-1 amended by amending Section 102.003 to read as follows:
4-2 Sec. 102.003. ITEMIZED BUDGET; CONTENTS. (a) The budget
4-3 officer shall itemize the budget to allow as clear a comparison as
4-4 practicable between expenditures included in the proposed budget
4-5 and actual expenditures for the same or similar purposes made for
4-6 the preceding year. The budget must show as definitely as possible
4-7 each of the projects for which expenditures are set up in the
4-8 budget and the estimated amount of money carried in the budget for
4-9 each project.
4-10 (b) The budget must contain a complete financial statement
4-11 of the municipality that shows:
4-12 (1) the outstanding obligations of the municipality;
4-13 (2) the cash on hand to the credit of each fund;
4-14 (3) the funds received from all sources during the
4-15 preceding year;
4-16 (4) the funds available from all sources during the
4-17 ensuing year;
4-18 (5) the estimated revenue available to cover the
4-19 proposed budget; <and>
4-20 (6) the cost of complying with state or federal
4-21 mandates under Section 26.045 of the Tax Code if applicable;
4-22 (7) the mandate cost rate required under Section
4-23 26.045 of the Tax Code to cover the cost of compliance with state
4-24 and federal mandates if applicable; and
4-25 (8) the estimated tax rate required to cover the
5-1 proposed budget.
5-2 SECTION 4. Chapter 111 of the Local Government Code is
5-3 amended by amending Sections 111.004, 111.034 and 111.063 to read
5-4 as follows:
5-5 Sec. 111.004. ITEMIZED BUDGET; CONTENTS. (a) The county
5-6 judge shall itemize the budget to allow as clear a comparison as
5-7 practicable between expenditures included in the proposed budget
5-8 and actual expenditures for the same or similar purposes made for
5-9 the preceding year. The budget must show as definitely as possible
5-10 each of the projects for which expenditures are set up in the
5-11 budget and the estimated amount of money carried in the budget for
5-12 each project.
5-13 (b) The budget must contain a complete financial statement
5-14 of the county that shows:
5-15 (1) the outstanding obligations of the county;
5-16 (2) the cash on hand to the credit of each fund of the
5-17 county government;
5-18 (3) the funds received from all sources during the
5-19 preceding fiscal year;
5-20 (4) the funds available from all sources during the
5-21 ensuing fiscal year;
5-22 (5) the estimated revenues available to cover the
5-23 proposed budget; <and>
5-24 (6) the cost of complying with state or federal
5-25 mandates under Section 26.045 if applicable;
6-1 (7) the mandate cost rate under Section 26.045 that
6-2 is required to cover the cost of compliance with state or federal
6-3 mandates if applicable; and
6-4 (8) the estimated tax rate required to cover the
6-5 proposed budget.
6-6 (c) In preparing the budget, the county judge shall estimate
6-7 the revenue to be derived from taxes to be levied and collected in
6-8 the succeeding fiscal year and shall include that revenue in the
6-9 estimate of funds available to cover the proposed budget.
6-10 Sec. 111.034. ITEMIZED BUDGET; CONTENTS. (a) The county
6-11 auditor shall itemize the budget to allow as clear a comparison as
6-12 practicable between expenditures included in the proposed budget
6-13 and actual expenditures for the same or similar purposes that were
6-14 made for the preceding fiscal year. The budget must show with
6-15 reasonable accuracy each project for which an appropriation is
6-16 established in the budget and the estimated amount of money carried
6-17 in the budget for each project.
6-18 (b) The budget must contain a complete financial statement
6-19 of the county that shows:
6-20 (1) the outstanding obligations of the county;
6-21 (2) the cash on hand to the credit of each fund of the
6-22 county government;
6-23 (3) the funds received from all sources during the
6-24 preceding fiscal year;
6-25 (4) the funds and revenue estimated by the auditor to
7-1 be received from all sources during the preceding fiscal year;
7-2 (5) the funds and revenue estimated by the auditor to
7-3 be received from all sources during the ensuing fiscal year; <and>
7-4 (6) the cost of complying with state or federal
7-5 mandates under Section 26.045 if applicable;
7-6 (7) the mandate cost rate under Section 26.045 that is
7-7 required to cover the cost of compliance with state or federal
7-8 mandates if applicable; and
7-9 (8) a statement of all accounts and contracts on which
7-10 sums are due to or owed by the county as of the last day of the
7-11 preceding fiscal year, except for taxes and court costs.
7-12 Sec. 111.063. ITEMIZED BUDGET; CONTENTS. (a) The budget
7-13 officer shall itemize the budget to allow as clear a comparison as
7-14 practicable between expenditures included in the proposed budget
7-15 and actual or estimated expenditures for the same or similar
7-16 purposes that were made for the preceding fiscal year. The budget
7-17 must show with reasonable accuracy each of the projects for which
7-18 an appropriation is established in the budget and the estimated
7-19 amount of money carried in the budget for each project.
7-20 (b) The budget officer shall obtain from the county auditor
7-21 any information necessary to prepare a complete financial statement
7-22 for inclusion in the budget. The financial statement must show:
7-23 (1) the outstanding obligations of the county;
7-24 (2) the cash on hand to the credit of each fund of the
7-25 county government;
8-1 (3) funds received from all sources during the
8-2 preceding fiscal year;
8-3 (4) the funds and revenue estimated by the auditor to
8-4 be received from all sources during the preceding fiscal year;
8-5 (5) the funds and revenue estimated by the auditor to
8-6 be received during the ensuing year; <and>
8-7 (6) the cost of complying with state or federal
8-8 mandates under Section 26.045 of the Tax Code if applicable;
8-9 (7) the mandate cost rate required under Section
8-10 26.045 of the Tax Code to cover the cost of compliance with state
8-11 and federal mandates if applicable; and
8-12 (8) a statement of all accounts and contracts on which
8-13 sums are due to or owed by the county as of the last day of the
8-14 preceding fiscal year, except for taxes and court costs.
8-15 (c) If actual amounts for the information described by
8-16 Subsection (b)(1), (b)(2), (b)(3), or (b)(8)<(6)> are not available
8-17 at the time the budget officer prepares the financial statement,
8-18 the budget officer may use in the preparation of the statement
8-19 estimates of that information made by the county auditor.
8-20 (d) Subsection (c) does not prevent the commissioners court
8-21 from adopting a budget before the beginning of the fiscal year for
8-22 which the budget is prepared.
8-23 SECTION 5. The importance of this legislation and the
8-24 crowded condition of the calendars in both houses create an
8-25 emergency and an imperative public necessity that the
9-1 constitutional rule requiring bills to be read on three several
9-2 days in each house be suspended, and this rule is hereby suspended.