1-1  By:  Craddick (Senate Sponsor - Brown)                H.B. No. 1537
    1-2        (In the Senate - Received from the House May 4, 1995;
    1-3  May 5, 1995, read first time and referred to Committee on Finance;
    1-4  May 16, 1995, reported favorably by the following vote:  Yeas 12,
    1-5  Nays 0; May 16, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the calculation of the effective tax rate for taxing
    1-9  units.
   1-10        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  Section 26.012(11), Tax Code, is amended to read
   1-12  as follows:
   1-13              (11)  "Last year's debt levy" means the total of:
   1-14                    (A)  the amount of taxes that would be generated
   1-15  by multiplying the total taxable value of property on the appraisal
   1-16  roll for the preceding year, including all appraisal roll
   1-17  supplements and corrections, other than corrections made pursuant
   1-18  to Section 25.25(d) of this code, as of the date of calculation, by
   1-19  the debt rate adopted by the governing body in the preceding year
   1-20  under Section 26.05(a)(1) <26.05(b)(1)> of this code; and
   1-21                    (B)  the amount of debt taxes refunded by the
   1-22  taxing unit in the preceding year for tax years before that year.
   1-23        SECTION 2.  Section 26.012(13), Tax Code, is amended to read
   1-24  as follows:
   1-25              (13)  "Last year's levy" means the total of:
   1-26                    (A)  the amount of taxes that would be generated
   1-27  by multiplying the total tax rate adopted by the governing body in
   1-28  the preceding year by the total taxable value of property on the
   1-29  appraisal roll for the preceding year, including all appraisal roll
   1-30  supplements and corrections other than corrections made pursuant to
   1-31  Section 25.25(d) of this code, as of the date of the calculation,
   1-32  except that last year's taxable value for a school district
   1-33  excludes the total value of homesteads that qualified for a tax
   1-34  limitation as provided by Section 11.26 of this code; and
   1-35                    (B)  the amount of taxes refunded by the taxing
   1-36  unit in the preceding year for tax years before that year.
   1-37        SECTION 3.  Section 26.012(14), Tax Code, is amended to read
   1-38  as follows:
   1-39              (14)  "Last year's total value" means the total taxable
   1-40  value of property listed on the appraisal roll for the preceding
   1-41  year, including all appraisal roll supplements and corrections,
   1-42  other than corrections made pursuant to Section 25.25(d) of this
   1-43  code, as of the date of the calculation, except that last year's
   1-44  taxable value for a school district excludes the total value of
   1-45  homesteads that qualified for a tax limitation as provided by
   1-46  Section 11.26 of this code.
   1-47        SECTION 4.  Section 26.08, Tax Code, is amended by adding
   1-48  Subsection (i) to read as follows:
   1-49        (i)  For purposes of this section, increases in taxable
   1-50  values and tax levies occurring within a reinvestment zone under
   1-51  the provisions of Chapter 311 (Tax Increment Financing Act), in
   1-52  which the district is a participant, shall be eliminated from the
   1-53  calculation of the tax rate adopted by the governing body of the
   1-54  school district.
   1-55        SECTION 5.  The importance of this legislation and the
   1-56  crowded condition of the calendars in both houses create an
   1-57  emergency and an imperative public necessity that the
   1-58  constitutional rule requiring bills to be read on three several
   1-59  days in each house be suspended, and this rule is hereby suspended.
   1-60                               * * * * *