1-1 By: Barrientos S.B. No. 668
1-2 (In the Senate - Filed March 8, 1993; March 9, 1993, read
1-3 first time and referred to Committee on Finance; April 22, 1993,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 13, Nays 0; April 22, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 COMMITTEE SUBSTITUTE FOR S.B. No. 668 By: Armbrister
1-22 A BILL TO BE ENTITLED
1-23 AN ACT
1-24 relating to the ad valorem tax rate of certain taxing units.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section 26.04, Tax Code, is amended by adding
1-27 Subsections (k) and (l) to read as follows:
1-28 (k) This subsection applies to a taxing unit that has agreed
1-29 by written contract to transfer a distinct department, function, or
1-30 activity to another taxing unit and discontinues operating that
1-31 distinct department, function, or activity if the operation of that
1-32 department, function, or activity in all or a majority of the
1-33 territory of the taxing unit is continued by another existing
1-34 taxing unit or by a new taxing unit. The rollback tax rate of a
1-35 taxing unit to which this subsection applies in the first tax year
1-36 in which a budget is adopted that does not allocate revenue to the
1-37 discontinued department, function, or activity is calculated as
1-38 otherwise provided by this section, except that last year's levy
1-39 used to calculate the effective maintenance and operations rate of
1-40 the unit is reduced by the amount of maintenance and operations tax
1-41 revenue spent by the taxing unit to operate the department,
1-42 function, or activity for the 12 months preceding the month in
1-43 which the calculations required by this chapter are made and in
1-44 which the unit operated the discontinued department, function, or
1-45 activity. If the unit did not operate that department, function,
1-46 or activity for the full 12 months preceding the month in which the
1-47 calculations required by this chapter are made, the unit shall
1-48 reduce last year's levy used for calculating the effective
1-49 maintenance and operations rate of the unit by the amount of the
1-50 revenue spent in the last full fiscal year in which the unit
1-51 operated the discontinued department, function, or activity.
1-52 (l) This subsection applies to a taxing unit that had agreed
1-53 by written contract to accept the transfer of a distinct
1-54 department, function, or activity from another taxing unit and
1-55 operates a distinct department, function, or activity if the
1-56 operation of a substantially similar department, function, or
1-57 activity in all or a majority of the territory of the taxing unit
1-58 has been discontinued by another taxing unit, including a dissolved
1-59 taxing unit. The rollback tax rate of a taxing unit to which this
1-60 subsection applies in the first tax year after the other taxing
1-61 unit discontinued the substantially similar department, function,
1-62 or activity in which a budget is adopted that allocates revenue to
1-63 the department, function, or activity is calculated as otherwise
1-64 provided by this section, except that last year's levy used to
1-65 calculate the effective maintenance and operations rate of the unit
1-66 is increased by the amount of maintenance and operations tax
1-67 revenue spent by the taxing unit that discontinued operating the
1-68 substantially similar department, function, or activity to operate
2-1 that department, function, or activity for the 12 months preceding
2-2 the month in which the calculations required by this chapter are
2-3 made and in which the unit operated the discontinued department,
2-4 function, or activity. If the unit did not operate the
2-5 discontinued department, function, or activity for the full 12
2-6 months preceding the month in which the calculations required by
2-7 this chapter are made, the unit may increase last year's levy used
2-8 to calculate the effective maintenance and operations rate by an
2-9 amount not to exceed the amount of property tax revenue spent by
2-10 the discontinuing unit to operate the discontinued department,
2-11 function, or activity in the last full fiscal year in which the
2-12 discontinuing unit operated the department, function, or activity.
2-13 SECTION 2. Subsection (e), Section 26.04, Tax Code, is
2-14 amended to read as follows:
2-15 (e) By August 7 or as soon thereafter as practicable, the
2-16 designated officer or employee shall submit the rates to the
2-17 governing body. He shall publish in a newspaper in the form
2-18 prescribed by the comptroller:
2-19 (1) the effective tax rate, the rollback tax rate, and
2-20 an explanation of how they were calculated;
2-21 (2) the estimated amount of interest and sinking fund
2-22 balances and the estimated amount of maintenance and operation or
2-23 general fund balances remaining at the end of the current fiscal
2-24 year that are not encumbered with or by corresponding existing debt
2-25 obligation, except that for a school district, estimated funds
2-26 necessary for the operation of the district prior to the receipt of
2-27 the first state education aid payment in the succeeding school year
2-28 shall be subtracted from the estimated fund balances;
2-29 (3) a schedule of the unit's debt obligations showing:
2-30 (A) the amount of principal and interest that
2-31 will be paid to service the unit's debts in the next year from
2-32 property tax revenue, including payments of lawfully incurred
2-33 contractual obligations providing security for the payment of the
2-34 principal of and interest on bonds and other evidences of
2-35 indebtedness issued on behalf of the unit by another political
2-36 subdivision;
2-37 (B) the amount by which taxes imposed for debt
2-38 are to be increased because of the unit's anticipated collection
2-39 rate; and
2-40 (C) the total of the amounts listed in
2-41 Paragraphs (A)-(B), less any amount collected in excess of the
2-42 previous year's anticipated collections certified as provided in
2-43 Subsection (b) of this section; <and>
2-44 (4) the amount of additional sales and use tax revenue
2-45 anticipated in calculations under Section 26.041 of this code;
2-46 (5) in the year that a taxing unit calculates an
2-47 adjustment under Section 26.04(k) or (l) of this code, the unit
2-48 shall publish a schedule that includes the following elements:
2-49 (A) the name of the unit discontinuing the
2-50 department, function, or activity;
2-51 (B) the amount of property tax revenue spent by
2-52 the unit listed under Paragraph (A) of this subsection to operate
2-53 the discontinued department, function, or activity in the 12 months
2-54 preceding the month in which the calculations required by this
2-55 chapter are made; and
2-56 (C) the name of the unit that operates a
2-57 distinct department, function, or activity in all or a majority of
2-58 the territory of a taxing unit that has discontinued operating the
2-59 distinct department, function, or activity; and
2-60 (6) in the year following the year in which a taxing
2-61 unit raised its rollback rate as required by Section 26.04(l) of
2-62 this code, the taxing unit shall publish a schedule that includes
2-63 the following elements:
2-64 (A) the amount of property tax revenue spent by
2-65 the unit to operate the department, function, or activity for which
2-66 the taxing unit raised the rollback rate as required by Section
2-67 26.04(l) of this code for the 12 months preceding the month in
2-68 which the calculations required by this chapter are made; and
2-69 (B) the amount published by the unit in the
2-70 preceding tax year under Section 26.04(e)(5)(B) of this code.
3-1 SECTION 3. The change in law made by this Act applies only
3-2 to a taxing unit that adopts its tax rate on or after the effective
3-3 date of this Act.
3-4 SECTION 4. The importance of this legislation and the
3-5 crowded condition of the calendars in both houses create an
3-6 emergency and an imperative public necessity that the
3-7 constitutional rule requiring bills to be read on three several
3-8 days in each house be suspended, and this rule is hereby suspended,
3-9 and that this Act take effect and be in force from and after its
3-10 passage, and it is so enacted.
3-11 * * * * *
3-12 Austin,
3-13 Texas
3-14 April 22, 1993
3-15 Hon. Bob Bullock
3-16 President of the Senate
3-17 Sir:
3-18 We, your Committee on Finance to which was referred S.B. No. 668,
3-19 have had the same under consideration, and I am instructed to
3-20 report it back to the Senate with the recommendation that it do not
3-21 pass, but that the Committee Substitute adopted in lieu thereof do
3-22 pass and be printed.
3-23 Montford,
3-24 Chairman
3-25 * * * * *
3-26 WITNESSES
3-27 FOR AGAINST ON
3-28 ___________________________________________________________________
3-29 Name: Jann Phenix x
3-30 Representing: Travis Co.
3-31 City: Austin
3-32 -------------------------------------------------------------------
3-33 Name: Richard Hamner x
3-34 Representing: Legis Dir Senator Barrientos
3-35 City: Austin
3-36 -------------------------------------------------------------------
3-37 Name: Cheryll Adair x
3-38 Representing: Cash Invest Mgr Travis Co
3-39 City: Austin
3-40 -------------------------------------------------------------------