SRC-JXG S.B. 1118 76(R)BILL ANALYSIS Senate Research CenterS.B. 1118 By: Armbrister Intergovernmental Relations 4/21/1999 Committee Report (Amended) DIGEST Currently, the governing body of a taxing unit must set the tax rate for the current year by September 1, or as soon thereafter as practicable; however sometimes, the tax rate is not set until November or December. S.B. 1118 would require the governing body of a taxing unit to adopt an ad valorem tax rate by a certain date. PURPOSE As proposed, S.B. 1118 requires the governing body of a taxing unit to adopt an ad valorem tax rate by a certain date. 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 Sections 26.05(a) and (c), Tax Code, to require the governing body of each taxing unit, before the 61st day after the date the chief appraiser certifies the appraisal roll to the taxing unit, to adopt a tax rate for the current year. Provides that the tax rate for the taxing unit for that tax year is the lower of the effective tax rate calculated for that tax year or the tax rate adopted by the taxing unit for the preceding tax year, if the governing body of a taxing unit does not adopt a tax rate before the date required by Subsection (a). Provides that a tax rate established by this subsection is treated as an adopted tax rate. Requires the governing body of the taxing unit to ratify the applicable tax rate in the manner required by Subsection (b), before the fifth day after the establishment of a tax rate by this subsection. Deletes text regarding Subsection (c), September 1, and of this code. Deletes text authorizing the county to adopt a tax rate during a 30 day period. Deletes text regarding adoption of a tax rate within five days pursuant to this subsection. Makes conforming changes. SECTION 2. Effective date: January 1, 2000. Makes application of this Act prospective. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE CHANGES SECTION 1. Amends Section 26.05(a), Tax Code, to require the governing body of each taxing unit, before the 61st day, rather than the 31st day, after the date the chief appraiser certifies the appraisal roll to the taxing unit, to adopt a tax rate for the current year.