Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By: Ogden S.B. No. 1019
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the school district ad valorem tax rollback rate.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 26.08, Tax Code, is amended to read as
1-4 follows:
1-5 Sec. 26.08. ELECTION TO RATIFY [LIMIT] SCHOOL TAXES.
1-6 (a) If the governing body of a school district adopts a rate that
1-7 exceeds the [sum of the] district's rollback tax [effective
1-8 maintenance] rate calculated under Subsection (c), [the rate of
1-9 $0.08, and the district's current debt rate,] the registered voters
1-10 of the district at an election held for that purpose must determine
1-11 whether to approve the adopted [limit the] tax rate [the governing
1-12 body may adopt for the current year to the school district rollback
1-13 tax rate]. When increased expenditure of money by a school
1-14 district is necessary to respond to a disaster, including a
1-15 tornado, hurricane, flood, or other calamity, but not including a
1-16 drought, that has impacted a school district and the governor has
1-17 requested federal disaster assistance for the area in which the
1-18 school district is located, an election is not required under this
1-19 section to approve [limit] the tax rate adopted by the governing
1-20 body [may adopt] for the year following the year in which the
1-21 disaster occurs.
1-22 (b) The governing body shall order that the [an] election be
1-23 held in the school district on a date not less than 30 or more than
2-1 90 days after the day on which it adopted the tax rate. Section
2-2 41.001, Election Code, does not apply to the election unless a date
2-3 specified by that section falls within the time permitted by this
2-4 section. At the election, the ballots shall be prepared to permit
2-5 voting for or against the proposition: "Approving [Limiting] the
2-6 ad valorem tax rate of $_____ per $100 valuation in (name of school
2-7 district) for the current year, a rate that is $_____ higher per
2-8 $100 valuation than [from (the rate adopted) to (]the school
2-9 district rollback tax rate[)]." The ballot proposition must
2-10 include the adopted tax rate and the difference between that rate
2-11 and the rollback tax rate in the appropriate places.
2-12 (c) If a majority of the votes cast in the election do not
2-13 favor the proposition, the [governing body may not adopt a] tax
2-14 rate for the school district for the current year is [that exceeds]
2-15 the school district rollback tax rate calculated for that year
2-16 using the following formula:
2-18 AND OPERATIONS RATE FOR PRECEDING TAX YEAR) + $0.06 [$0.08] +
2-19 CURRENT DEBT RATE
2-20 where:
2-21 (1) "preceding tax year" means [denotes amounts used
2-22 in calculating the rollback tax rate in] the tax year immediately
2-23 preceding the tax year for [in] which the tax increase that
2-24 initiated the referendum is adopted [occurred rather than the year
2-25 in which the calculation occurs]; and
3-1 (2) "enrollment adjustment" is computed by dividing
3-2 the current year's projected fall enrollment, as defined by the
3-3 Texas Education Agency, by last year's enrollment [but may not be
3-4 less than 1.0].
3-5 (d) If a majority of the votes cast in the election favor
3-6 the proposition, the tax rate for the current year is the rate
3-7 adopted by the governing body.
3-8 (e) For purposes of this section, local tax funds dedicated
3-9 to a junior college district under Section 45.105(e), Education
3-10 Code, shall be eliminated from the calculation of the tax rate
3-11 adopted by the governing body of the school district. However, the
3-12 funds dedicated to the junior college district are subject to
3-13 Section 26.085.
3-14 (f) [(e) If a school district is certified by the
3-15 commissioner of education under Section 42.251(c), Education Code,
3-16 to have been subject to a reduction in total revenue for the school
3-17 year ending on August 31 of the tax year:]
3-18 [(1) the district's effective maintenance and
3-19 operations rate for the tax year is calculated as provided by
3-20 Section 26.012, except that last year's levy is reduced by the
3-21 amount of taxes imposed in the preceding year, if any, to offset
3-22 the amount of the reduction certified by the commissioner; and]
3-23 [(2) the district's rollback tax rate for the tax year
3-24 calculated as provided by Section 26.04 or by Subsection (c), as
3-25 applicable, is increased by the tax rate that, if applied to the
4-1 current total value for the school district, would impose taxes in
4-2 an amount equal to the amount of the reduction certified by the
4-3 commissioner.]
4-4 [(f) In a school district that received distributions from
4-5 an equalization tax imposed under former Chapter 18, Education
4-6 Code, the effective rate of that tax as of the date of the county
4-7 unit system's abolition is added to the district's effective
4-8 maintenance and operations rate under Subsections (a) and (c) of
4-9 this section in the calculation of the district's rollback tax
4-10 rate.]
4-11 [(i)] For purposes of this section, increases in taxable
4-12 values and tax levies occurring within a reinvestment zone under
4-13 the provisions of Chapter 311 (Tax Increment Financing Act), in
4-14 which the district is a participant, shall be eliminated from the
4-15 calculation of the tax rate adopted by the governing body of the
4-16 school district.
4-17 SECTION 2. This Act takes effect September 1, 1997. The tax
4-18 rate calculations for a tax year that began before the effective
4-19 date of this Act are governed by the applicable law in effect
4-20 before the effective date of this Act, and the former law is
4-21 continued in effect for that purpose.
4-22 SECTION 3. The importance of this legislation and the
4-23 crowded condition of the calendars in both houses create an
4-24 emergency and an imperative public necessity that the
4-25 constitutional rule requiring bills to be read on three several
5-1 days in each house be suspended, and this rule is hereby suspended.