H.B. No. 1537
    1-1                                AN ACT
    1-2  relating to the calculation of the effective tax rate for taxing
    1-3  units.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 26.012(11), Tax Code, is amended to read
    1-6  as follows:
    1-7              (11)  "Last year's debt levy" means the total of:
    1-8                    (A)  the amount of taxes that would be generated
    1-9  by multiplying the total taxable value of property on the appraisal
   1-10  roll for the preceding year, including all appraisal roll
   1-11  supplements and corrections, other than corrections made pursuant
   1-12  to Section 25.25(d) of this code, as of the date of calculation, by
   1-13  the debt rate adopted by the governing body in the preceding year
   1-14  under Section 26.05(a)(1) <26.05(b)(1)> of this code; and
   1-15                    (B)  the amount of debt taxes refunded by the
   1-16  taxing unit in the preceding year for tax years before that year.
   1-17        SECTION 2.  Section 26.012(13), Tax Code, is amended to read
   1-18  as follows:
   1-19              (13)  "Last year's levy" means the total of:
   1-20                    (A)  the amount of taxes that would be generated
   1-21  by multiplying the total tax rate adopted by the governing body in
   1-22  the preceding year by the total taxable value of property on the
   1-23  appraisal roll for the preceding year, including all appraisal roll
    2-1  supplements and corrections other than corrections made pursuant to
    2-2  Section 25.25(d) of this code, as of the date of the calculation,
    2-3  except that last year's taxable value for a school district
    2-4  excludes the total value of homesteads that qualified for a tax
    2-5  limitation as provided by Section 11.26 of this code; and
    2-6                    (B)  the amount of taxes refunded by the taxing
    2-7  unit in the preceding year for tax years before that year.
    2-8        SECTION 3.  Section 26.012(14), Tax Code, is amended to read
    2-9  as follows:
   2-10              (14)  "Last year's total value" means the total taxable
   2-11  value of property listed on the appraisal roll for the preceding
   2-12  year, including all appraisal roll supplements and corrections,
   2-13  other than corrections made pursuant to Section 25.25(d) of this
   2-14  code, as of the date of the calculation, except that last year's
   2-15  taxable value for a school district excludes the total value of
   2-16  homesteads that qualified for a tax limitation as provided by
   2-17  Section 11.26 of this code.
   2-18        SECTION 4.  Section 26.08, Tax Code, is amended by adding
   2-19  Subsection (i) to read as follows:
   2-20        (i)  For purposes of this section, increases in taxable
   2-21  values and tax levies occurring within a reinvestment zone under
   2-22  the provisions of Chapter 311 (Tax Increment Financing Act), in
   2-23  which the district is a participant, shall be eliminated from the
   2-24  calculation of the tax rate adopted by the governing body of the
   2-25  school district.
    3-1        SECTION 5.  The importance of this legislation and the
    3-2  crowded condition of the calendars in both houses create an
    3-3  emergency and an imperative public necessity that the
    3-4  constitutional rule requiring bills to be read on three several
    3-5  days in each house be suspended, and this rule is hereby suspended.