SRC-JJJ S.B. 1090 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1090
76R5972 ESH-FBy: Duncan
Intergovernmental Relations
3/29/1999
As Filed


DIGEST 

The definition of debt used in the Tax Code remains effective for single
authority taxing entities like cities and counties, but does not work well
for school and college districts that have two separate sources of taxing
authority, one for maintenance and one for interest and sinking funds.
S.B. 1090 would establish that obligations greater than one year are
defined as debt, of the respective taxing authority, for cities, schools,
colleges, and other political subdivisions under the Tax Code's effective
tax computation. 

PURPOSE

As proposed, S.B. 1090 establishes conditions relating to the treatment of
certain contracts for purposes of determining the rollback tax rate of a
taxing unit. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 271.005, Local Government Code, by adding
Subsection (e), to provide that a contract that has a term longer than one
year and as to which the governing body has obligated ad valorem taxes for
payment of the contract is considered debt for purposes of Section
26.012(7), Tax Code. 

SECTION 2.  Emergency clause.
            Effective date: upon passage.