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of state aid which the 1-13 district would be entitled to receive under Chapter 16 of this code 1-14 if the district repealed such exemption. 1-15 (b) For each school district that has not adopted a local 1-16 option residence homestead exemption as provided by Subsection (b) 1-17 or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2-8 valorem tax revenue the district would be required to relinquish 2-9 under Chapter 36 of this code if the district repealed such 2-10 exemption. 2-11 (d) For each school district that not has adopted a local 2-12 option residence homestead exemption as provided by Subsection (b)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.