By Cuellar, Ehrhardt H.B. No. 51
76R313 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of a taxing unit to permit certain
1-3 persons to perform services for the unit in lieu of paying ad
1-4 valorem taxes owed to the unit.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 31, Tax Code, is amended by adding
1-7 Section 31.035 to read as follows:
1-8 Sec. 31.035. PERFORMANCE OF SERVICE IN LIEU OF PAYMENT OF
1-9 TAXES ON HOMESTEAD OF ELDERLY PERSON. (a) The governing body of a
1-10 taxing unit by order or resolution may permit an individual who is
1-11 at least 65 years of age to perform service for the taxing unit in
1-12 lieu of paying taxes imposed by the taxing unit on property owned
1-13 by the individual and occupied as the individual's residence
1-14 homestead.
1-15 (b) The governing body of the taxing unit shall determine:
1-16 (1) the number of property owners who will be
1-17 permitted to perform service for the taxing unit under this
1-18 section; and
1-19 (2) the maximum number of hours of service that a
1-20 property owner may perform for the taxing unit under this section.
1-21 (c) The governing body shall require that each property
1-22 owner permitted to perform service for the taxing unit under this
1-23 section execute a contract with the taxing unit. The contract must
1-24 be executed before the delinquency date and must:
2-1 (1) specify:
2-2 (A) the nature of the service that the property
2-3 owner will perform for the taxing unit;
2-4 (B) the facility or location where the service
2-5 will be performed;
2-6 (C) the number of hours of service the property
2-7 owner will perform; and
2-8 (D) when the property owner will perform the
2-9 service; and
2-10 (2) set out or describe the provisions of Subsections
2-11 (d), (e), and (f).
2-12 (d) For each hour of service performed for the taxing unit,
2-13 the property owner receives a credit against the taxes owed in an
2-14 amount equal to the amount that would be earned by working one hour
2-15 at the federal hourly minimum wage rate. The contract must require
2-16 the property owner to perform the service not later than one year
2-17 after the delinquency date for the taxes against which the property
2-18 owner receives credit.
2-19 (e) Taxes for which the property owner is to receive credit
2-20 under the contract do not become delinquent on the delinquency date
2-21 otherwise provided by this chapter as long as the contract is in
2-22 effect and are considered paid when the service is performed. If
2-23 the property owner fails to perform the service, or if the taxing
2-24 unit determines that the service of the property owner is
2-25 unsatisfactory, the taxing unit shall terminate the contract and
2-26 notify the property owner of the termination. The unpaid taxes for
2-27 which the property owner was to receive credit under the contract
3-1 for service not yet performed become delinquent and incur penalty
3-2 and interest provided by Section 33.01 on the later of:
3-3 (1) the delinquency date otherwise provided by this
3-4 chapter for the unpaid taxes; or
3-5 (2) the first day of the next calendar month that
3-6 begins at least 21 days after the date the taxing unit delivers
3-7 notice to the property owner that the contract has been terminated.
3-8 (f) While performing service for a taxing unit, the property
3-9 owner:
3-10 (1) is not an employee of the taxing unit; and
3-11 (2) is not entitled to any benefit, including workers'
3-12 compensation coverage, that the taxing unit provides to an employee
3-13 of the taxing unit.
3-14 (g) Property owners performing services for a taxing unit
3-15 under this section may only supplement or complement the regular
3-16 personnel of the taxing unit. A taxing unit may not reduce the
3-17 number of persons the taxing unit employs or reduce the number of
3-18 hours to be worked by employees of the taxing unit because the
3-19 taxing unit permits property owners to perform services for the
3-20 taxing unit under this section.
3-21 (h) A person performing service for a taxing unit under this
3-22 section is not entitled to indemnification from the taxing unit for
3-23 injury or property damage the person sustains or liability the
3-24 person incurs in performing service under this section. The taxing
3-25 unit is not liable for any damages arising from an act or omission
3-26 of the person in performing service under this section.
3-27 SECTION 2. Section 42.302(a), Education Code, is amended to
4-1 read as follows:
4-2 (a) Each school district is guaranteed a specified amount
4-3 per weighted student in state and local funds for each cent of tax
4-4 effort over that required for the district's local fund assignment
4-5 up to the maximum level specified in this subchapter. The amount
4-6 of state support, subject only to the maximum amount under Section
4-7 42.303, is determined by the formula:
4-8 GYA = (GL X WADA X DTR X 100) - LR
4-9 where:
4-10 "GYA" is the guaranteed yield amount of state funds to be
4-11 allocated to the district;
4-12 "GL" is the dollar amount guaranteed level of state and local
4-13 funds per weighted student per cent of tax effort, which is $21 or
4-14 a greater amount for any year provided by appropriation;
4-15 "WADA" is the number of students in weighted average daily
4-16 attendance, which is calculated by dividing the sum of the school
4-17 district's allotments under Subchapters B and C, less any allotment
4-18 to the district for transportation and 50 percent of the adjustment
4-19 under Section 42.102, by the basic allotment for the applicable
4-20 year;
4-21 "DTR" is the district enrichment and facilities tax rate of
4-22 the school district, which is determined by subtracting the amounts
4-23 specified by Subsection (b) from the sum of the total amount of
4-24 taxes collected by the school district for the applicable school
4-25 year plus an amount equal to the total of all tax credits earned
4-26 under Section 31.035, Tax Code, for that school year, and dividing
4-27 the difference by the quotient of the district's taxable value of
5-1 property as determined under Subchapter M, Chapter 403, Government
5-2 Code, divided by 100; and
5-3 "LR" is the local revenue, which is determined by multiplying
5-4 "DTR" by the quotient of the district's taxable value of property
5-5 as determined under Subchapter M, Chapter 403, Government Code,
5-6 divided by 100.
5-7 SECTION 3. The importance of this legislation and the
5-8 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,
5-12 and that this Act take effect and be in force from and after its
5-13 passage, and it is so enacted.