1-1 By: Ogden S.B. No. 1019
1-2 (In the Senate - Filed March 7, 1997; March 11, 1997, read
1-3 first time and referred to Committee on Education; May 16, 1997,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 6, Nays 0; May 16, 1997, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1019 By: Haywood
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the school district ad valorem tax rate.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 26.08, Tax Code, is amended to read as
1-12 follows:
1-13 Sec. 26.08. ELECTION TO RATIFY [LIMIT] SCHOOL TAXES.
1-14 (a) If the governing body of a school district adopts a tax rate
1-15 that exceeds the [sum of the] district's rollback tax [effective
1-16 maintenance] rate, [the rate of $0.08, and the district's current
1-17 debt rate,] the registered voters of the district at an election
1-18 held for that purpose must determine whether to approve the adopted
1-19 [limit the] tax rate [the governing body may adopt for the current
1-20 year to the school district rollback tax rate]. When increased
1-21 expenditure of money by a school district is necessary to respond
1-22 to a disaster, including a tornado, hurricane, flood, or other
1-23 calamity, but not including a drought, that has impacted a school
1-24 district and the governor has requested federal disaster assistance
1-25 for the area in which the school district is located, an election
1-26 is not required under this section to approve [limit] the tax rate
1-27 adopted by the governing body [may adopt] for the year following
1-28 the year in which the disaster occurs.
1-29 (b) The governing body shall order that the [an] election be
1-30 held in the school district on a date not less than 30 or more than
1-31 90 days after the day on which it adopted the tax rate. Section
1-32 41.001, Election Code, does not apply to the election unless a date
1-33 specified by that section falls within the time permitted by this
1-34 section. At the election, the ballots shall be prepared to permit
1-35 voting for or against the proposition: "Approving [Limiting] the
1-36 ad valorem tax rate of $_______ per $100 valuation in (name of
1-37 school district) for the current year, a rate that is $_______
1-38 higher per $100 valuation than [from (the rate adopted) to (]the
1-39 school district rollback tax rate[)]." The ballot proposition must
1-40 include the adopted tax rate and the difference between that rate
1-41 and the rollback tax rate in the appropriate places.
1-42 (c) If a majority of the votes cast in the election favor
1-43 the proposition, the tax rate for the current year is the rate
1-44 adopted by the governing body.
1-45 (d) If [a majority of the votes cast in the election favor]
1-46 the proposition is not approved as provided by Subsection (c), the
1-47 [governing body may not adopt a] tax rate for the school district
1-48 for the current year is [that exceeds] the school district's
1-49 [district] rollback tax rate [calculated for that year using the
1-50 following formula:]
1-51 [ROLLBACK TAX RATE = (ENROLLMENT ADJUSTMENT) (EFFECTIVE MAINTENANCE
1-52 AND OPERATIONS RATE FOR TAX YEAR) + $0.08 + CURRENT DEBT RATE]
1-53 [where:]
1-54 [(1) "tax year" denotes amounts used in calculating
1-55 the rollback tax rate in the year immediately preceding the year in
1-56 which the tax increase that initiated the referendum occurred
1-57 rather than the year in which the calculation occurs; and]
1-58 [(2) "enrollment adjustment" is computed by dividing
1-59 the current year's projected fall enrollment, as defined by the
1-60 Texas Education Agency, by last year's enrollment but may not be
1-61 less than 1.0].
1-62 (e) [(d)] For purposes of this section, local tax funds
1-63 dedicated to a junior college district under Section 45.105(e),
1-64 Education Code, shall be eliminated from the calculation of the tax
2-1 rate adopted by the governing body of the school district.
2-2 However, the funds dedicated to the junior college district are
2-3 subject to Section 26.085.
2-4 [(e) If a school district is certified by the commissioner
2-5 of education under Section 42.251(c), Education Code, to have been
2-6 subject to a reduction in total revenue for the school year ending
2-7 on August 31 of the tax year:]
2-8 [(1) the district's effective maintenance and
2-9 operations rate for the tax year is calculated as provided by
2-10 Section 26.012, except that last year's levy is reduced by the
2-11 amount of taxes imposed in the preceding year, if any, to offset
2-12 the amount of the reduction certified by the commissioner; and]
2-13 [(2) the district's rollback tax rate for the tax year
2-14 calculated as provided by Section 26.04 or by Subsection (c), as
2-15 applicable, is increased by the tax rate that, if applied to the
2-16 current total value for the school district, would impose taxes in
2-17 an amount equal to the amount of the reduction certified by the
2-18 commissioner.]
2-19 (f) [In a school district that received distributions from
2-20 an equalization tax imposed under former Chapter 18, Education
2-21 Code, the effective rate of that tax as of the date of the county
2-22 unit system's abolition is added to the district's effective
2-23 maintenance and operations rate under Subsections (a) and (c) of
2-24 this section in the calculation of the district's rollback tax
2-25 rate.]
2-26 [(i)] For purposes of this section, increases in taxable
2-27 values and tax levies occurring within a reinvestment zone under
2-28 [the provisions of] Chapter 311 (Tax Increment Financing Act), in
2-29 which the district is a participant, shall be eliminated from the
2-30 calculation of the tax rate adopted by the governing body of the
2-31 school district.
2-32 (g) For purposes of this section:
2-33 (1) The base rollback tax rate of a school district is
2-34 the sum of:
2-35 (A) the tax rate that, applied to the current
2-36 total value for the district, would impose taxes in an amount that,
2-37 when added to state funds to be distributed to the district under
2-38 Chapter 42, Education Code, for the school year beginning in the
2-39 current tax year, would provide the same amount of state funds and
2-40 maintenance and operations taxes of the district per student in
2-41 weighted average daily attendance for that school year that was
2-42 available to the district in the preceding year, but not less than
2-43 the total amount of those state funds and district maintenance and
2-44 operations taxes that would be available to the district at the tax
2-45 rate limit authorized by Subsection 42.253(e), Education Code;
2-46 (B) the rate of $0.05 per $100 of taxable value;
2-47 and
2-48 (C) the district's current debt rate.
2-49 (2) The district's rollback tax rate is computed by
2-50 adding the base rollback tax rate to the rollback correction rate.
2-51 (3) The rollback correction rate of a school district
2-52 is the rate determined by the comptroller pursuant to rules adopted
2-53 by the comptroller that if applied to current total value for the
2-54 district would generate an amount of taxes for maintenance and
2-55 operations equal to the difference between the amount of taxes for
2-56 maintenance and operations that would have been imposed under the
2-57 base rollback tax rate as calculated in the preceding year and the
2-58 amount of taxes that would have been imposed under the base
2-59 rollback tax rate for that year, had the base rollback tax rate
2-60 been accurately calculated by the district in the preceding year
2-61 using the actual amounts of state funds and weighted average daily
2-62 attendance for the year. If the base rollback tax rate calculated
2-63 in the preceding year exceeds that rate as calculated using actual
2-64 amounts, the rollback correction rate is a negative rate. If the
2-65 base rollback tax rate calculated in the preceding year is less
2-66 than that rate as calculated using actual amounts, the rollback
2-67 correction rate is a positive rate.
2-68 SECTION 2. This Act takes effect September 1, 1997.
2-69 SECTION 3. The importance of this legislation and the
3-1 crowded condition of the calendars in both houses create an
3-2 emergency and an imperative public necessity that the
3-3 constitutional rule requiring bills to be read on three several
3-4 days in each house be suspended, and this rule is hereby suspended.
3-5 * * * * *