By: Wentworth S.B. No. 1621
A BILL TO BE ENTITLED
AN ACT
1-1 relating to notice to taxpayers of the effect of granting,
1-2 reducing, or repealing local option residence homestead exemptions.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter F, Chapter 11, Education Code, is
1-5 amended by adding a new Section 11.88 to read as follows:
1-6 Section 11.88. NOTICE OF STATE AID PENALTY DUE TO HOMESTEAD
1-7 EXEMPTION. (a) For each school district that has adopted a local
1-8 option residence homestead exemption as provided by Subsection (b)
1-9 or (e) of Article VIII, Section 1-b, of the Texas Constitution, the
1-10 comptroller shall annually calculate the difference between the
1-11 amount of state aid which the district is entitled to receive under
1-12 Chapter 16 of this code and the amount of state aid which the
1-13 district would be entitled to receive under Chapter 16 of this code
1-14 if the district repealed such exemption.
1-15 (b) For each school district that has not adopted a local
1-16 option residence homestead exemption as provided by Subsection (b)
1-17 or (e) of Article VIII, Section 1-b, of the Texas Constitution, the
1-18 comptroller shall annually calculate the difference between the
1-19 amount of state aid which the district is entitled to receive under
1-20 Chapter 16 of this code and the amount of state aid which the
1-21 district would be entitled to receive under Chapter 16 of this code
1-22 if the district adopted the maximum of each such exemption allowed
1-23 by law.
2-1 (c) For each school district that has adopted a local option
2-2 residence homestead exemption as provided by Subsection (b) or (e)
2-3 of Article VIII, Section 1-b, of the Texas Constitution but which
2-4 receives no state aid under Chapter 16 of this code, the
2-5 comptroller shall annually calculate the difference between the
2-6 amount of local ad valorem tax revenue the district is required to
2-7 relinquish under Chapter 36 of this code and the amount of local ad
2-8 valorem tax revenue the district would be required to relinquish
2-9 under Chapter 36 of this code if the district repealed such
2-10 exemption.
2-11 (d) For each school district that not has adopted a local
2-12 option residence homestead exemption as provided by Subsection (b)
2-13 or (e) of Article VIII, Section 1-b, of the Texas Constitution but
2-14 which receives no state aid under Chapter 16 of this code, the
2-15 comptroller shall annually calculate the difference between the
2-16 amount of local ad valorem tax revenue the district is required to
2-17 relinquish under Chapter 36 of this code and the amount of local ad
2-18 valorem tax revenue the district would be required to relinquish
2-19 under Chapter 36 of this code if the district adopted the maximum
2-20 of each such exemption allowed by law.
2-21 (e) The comptroller shall annually calculate for each school
2-22 district the tax rate required to produce an amount of local ad
2-23 valorem tax revenue equivalent to the difference calculated in
2-24 Subsection (a), (b), (c), or (d) of this section.
2-25 (f) Prior to July 1 of each year the comptroller shall
3-1 notify each school district of the calculations performed for that
3-2 district pursuant to Subsections (a) - (e) of this section.
3-3 (g) Each school district receiving notification under
3-4 Subsection (a) or (b) of this section shall, within 30 days,
3-5 deliver by mail to each property owner or publish in a newspaper a
3-6 notice containing a statement in the following form:
3-7 "STATE COMPTROLLER DETERMINATION OF STATE AID PENALTY
3-8 FOR SCHOOL DISTRICTS GRANTING OR CONSIDERING LOCAL OPTION
3-9 RESIDENCE HOMESTEAD EXEMPTIONS
3-10 "The Texas Comptroller of Public Accounts has
3-11 determined that the (name of the school district) will lose
3-12 (amount calculated under Subsection (a) or (b) of this
3-13 section) in state aid by offering homeowners an additional
3-14 tax exemption.
3-15 "The Texas Comptroller of Public Accounts has further
3-16 determined that a tax rate increase of (amount per $100
3-17 calculated under Subsection (e) of this section) is necessary
3-18 to recoup this loss of state aid."
3-19 (h) Each school district receiving notification under
3-20 Subsection (c) or (d) of this section shall, within 30 days,
3-21 deliver by mail to each property owner or publish in a newspaper a
3-22 notice containing a statement in the following form:
3-23 "STATE COMPTROLLER DETERMINATION OF PROPERTY TAX
3-24 PENALTY FOR SCHOOL DISTRICTS GRANTING OR CONSIDERING LOCAL
3-25 OPTION RESIDENCE HOMESTEAD EXEMPTIONS
4-1 "The Texas Comptroller of Public Accounts has
4-2 determined that the (name of the school district) will lose
4-3 (amount calculated under Subsection (c) or (d) of this
4-4 section) in local property taxes by offering homeowners an
4-5 additional tax exemption.
4-6 "The Texas Comptroller of Public Accounts has further
4-7 determined that a tax rate increase of (amount per $100
4-8 calculated under Subsection (e) of this section) is necessary
4-9 to recoup this revenue loss."
4-10 (i) Notice under Subsection (g) or (h) of this section may
4-11 not be smaller than one-quarter page of a standard-size or
4-12 tabloid-size newspaper, and the headline on the notice must be in
4-13 18-point or larger type.
4-14 (j) No notice or notification under Subsection (f), (g), or
4-15 (h) of this section is required if the comptroller's calculation
4-16 for the school district shows a difference of zero.
4-17 (k) The comptroller shall distribute copies of the
4-18 calculations made under Subsections (a) - (e) of this section to
4-19 all members of the legislature.
4-20 (l) If needed in the discharge of his duties under this
4-21 section, the comptroller may request the assistance of any state
4-22 agency, department, or office. The agency, department, or office
4-23 shall provide the requested assistance.
4-24 SECTION 2. SEVERABILITY. If any provision of this Act or
4-25 its application to any person or circumstance is held invalid, the
5-1 invalidity does not affect other provisions or applications of this
5-2 Act that can be given effect without the invalid provision or
5-3 application, and to this end the provisions of this Act are
5-4 declared to be severable.
5-5 SECTION 3. EFFECTIVE DATE. This Act becomes effective
5-6 September 1, 1995.
5-7 SECTION 4. EMERGENCY. The importance of this legislation
5-8 and the 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.