By Flores                                             H.B. No. 1745
         76R4430 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the computation of an effective tax rate for school
 1-3     finance purposes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 42.253(i), Education Code, is amended to
 1-6     read as follows:
 1-7           (i)  Not later than March 1 each year, the commissioner shall
 1-8     determine the actual amount of state funds to which each school
 1-9     district is entitled under the allocation formulas in this chapter
1-10     for the current school year and shall compare that amount with the
1-11     amount of the warrants issued to each district for that year.  The
1-12     commissioner shall also determine the actual amount of state funds
1-13     to which each school district that received credit under Section
1-14     42.302(b) for taxes unpaid pending appraisal appeals was entitled
1-15     under the allocation formulas under this chapter for the school
1-16     year in which the district received the credit and shall compare
1-17     that amount with the amount of the warrants issued to each district
1-18     for that year.  If the amount of the warrants differs from the
1-19     amount to which a district is entitled [because of variations in
1-20     the district's tax rate, student enrollment, or taxable value of
1-21     property], the commissioner shall adjust the district's entitlement
1-22     for the next fiscal year accordingly.
1-23           SECTION 2.  Section 42.302, Education Code, is amended to
1-24     read as follows:
 2-1           Sec. 42.302.  ALLOTMENT.  (a)  Each school district is
 2-2     guaranteed a specified amount per weighted student in state and
 2-3     local funds for each cent of tax effort over that required for the
 2-4     district's local fund assignment up to the maximum level specified
 2-5     in this subchapter.  The amount of state support, subject only to
 2-6     the maximum amount under Section 42.303, is determined by the
 2-7     formula:
 2-8                     GYA = (GL X WADA X DTR X 100) - LR
 2-9     where:
2-10           "GYA" is the guaranteed yield amount of state funds to be
2-11     allocated to the district;
2-12           "GL" is the dollar amount guaranteed level of state and local
2-13     funds per weighted student per cent of tax effort, which is $21 or
2-14     a greater amount for any year provided by appropriation;
2-15           "WADA" is the number of students in weighted average daily
2-16     attendance, which is calculated by dividing the sum of the school
2-17     district's allotments under Subchapters B and C, less any allotment
2-18     to the district for transportation and 50 percent of the adjustment
2-19     under Section 42.102, by the basic allotment for the applicable
2-20     year;
2-21           "DTR" is the district enrichment and facilities tax rate of
2-22     the school district, which is determined by subtracting the amounts
2-23     specified by Subsection (b) from the sum of the total amount of
2-24     taxes collected by the school district for the applicable school
2-25     year and the total amount of taxes unpaid pending appraisal appeals
2-26     for that year and dividing the difference by the quotient of the
2-27     district's taxable value of property as determined under Subchapter
 3-1     M, Chapter 403, Government Code, divided by 100; and
 3-2           "LR" is the local revenue, which is determined by multiplying
 3-3     "DTR" by the quotient of the district's taxable value of property
 3-4     as determined under Subchapter M, Chapter 403, Government Code,
 3-5     divided by 100.
 3-6           (b)  For purposes of Subsection (a), the total amount of
 3-7     taxes unpaid pending appraisal appeals is the difference between
 3-8     the total amount of taxes levied by the school district on property
 3-9     that is the subject of a protest under Section 41.41, Tax Code, or
3-10     an appeal under Section 42.01(a)(1), Tax Code, as of the date for
3-11     which the computation is made less the total amount of taxes paid
3-12     on that property as of that date.  For purposes of this subsection,
3-13     the amount of taxes levied on property that is the subject of a
3-14     protest or appeal is determined using the taxable value of the
3-15     property according to the appraisal roll certified to the school
3-16     district.
3-17           (c)  In computing the district enrichment and facilities tax
3-18     rate of a school district, the total amount of taxes collected by
3-19     the school district does not include the amount of:
3-20                 (1)  the district's local fund assignment under Section
3-21     42.252;
3-22                 (2)  taxes collected to pay the local share of the cost
3-23     of an instructional facility for which the district receives state
3-24     assistance under Chapter 46; [or]
3-25                 (3)  taxes paid into a tax increment fund under Chapter
3-26     311, Tax Code; or
3-27                 (4)  taxes collected on property for a tax year for
 4-1     which the district previously included taxes levied on the property
 4-2     in the total amount of taxes unpaid pending appraisal appeals.
 4-3           SECTION 3.  This Act takes effect September 1, 1999.
 4-4           SECTION 4.  The importance of this legislation and the
 4-5     crowded condition of the calendars in both houses create an
 4-6     emergency and an imperative public necessity that the
 4-7     constitutional rule requiring bills to be read on three several
 4-8     days in each house be suspended, and this rule is hereby suspended.