By:  Wentworth                                        S.B. No. 1170
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the appraisal of property for ad valorem tax purposes.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Section 6.02, Tax Code, is amended to read as
 1-4     follows:
 1-5           Sec. 6.02.  DISTRICT BOUNDARIES.  The [(a) Except as
 1-6     otherwise provided by this section, the] appraisal district's
 1-7     boundaries are the same as the county's boundaries.
 1-8           [(b) A taxing unit that has boundaries extending into two or
 1-9     more counties may choose to participate in only one of the
1-10     appraisal districts.  In that event, the boundaries of the district
1-11     chosen extend outside the county to the extent of the unit's
1-12     boundaries.  To be effective, the choice must be approved by
1-13     resolution of the board of directors of the district chosen.  The
1-14     choice of a school district to participate in a single appraisal
1-15     district does not apply to property annexed to the school district
1-16     under Subchapter C or G, Chapter 41, Education Code, unless:]
1-17                 [(1)  the school district taxes property other than
1-18     property annexed to the district under Subchapter C or G, Chapter
1-19     41, Education Code, in the same county as the annexed property; or]
1-20                 [(2)  the annexed property is contiguous to property in
1-21     the school district other than property annexed to the district
1-22     under Subchapter C or G, Chapter 41, Education Code.]
1-23           [(c)  A taxing unit that has chosen to participate in a
1-24     single appraisal district under Subsection (b) of this section may
 2-1     revoke that choice and, if permitted to do so by Subsection (b),
 2-2     choose to participate in a single appraisal district other than the
 2-3     one previously chosen.  A taxing unit that has withdrawn from an
 2-4     appraisal district under this subsection and chosen to participate
 2-5     in another single appraisal district may not under this subsection
 2-6     withdraw from that district.]
 2-7           [(d)  A taxing unit that makes a choice under this section
 2-8     must do so by an official action of its governing body in the
 2-9     manner required by law for official action by the body.  A choice
2-10     made by a taxing unit under this section takes effect beginning on
2-11     the next January 1 that is at least 90 days from the date on which
2-12     the choice is made.]
2-13           [(e)  If a taxing unit ceases to have territory in the county
2-14     for which the appraisal district in which the unit participates is
2-15     established, but still has territory in two or more counties, the
2-16     unit may choose to participate in only one district in the manner
2-17     prescribed by this section.]
2-18           [(f)  All costs of operating an appraisal district in
2-19     territory outside the county for which the appraisal district is
2-20     established are allocated to the taxing unit for which the
2-21     appraisal district appraises property in that territory.  If the
2-22     appraisal district appraises property in the same territory for two
2-23     or more taxing units, costs of operating the district in that
2-24     territory are allocated to the units in the proportion the total
2-25     dollar amount of taxes each unit imposes in that territory bears to
2-26     the total dollar amount of taxes all taxing units participating in
 3-1     the appraisal district impose in that territory.]
 3-2           [(g)  If property is annexed to a school district under
 3-3     Subchapter C or G, Chapter 41, Education Code, the appraisal
 3-4     district established for the county in which the property is
 3-5     located shall appraise the property for the school district, and
 3-6     the school district participates in that appraisal district for
 3-7     purposes of the appraisal of that property, except as otherwise
 3-8     permitted by Subsection (b).]
 3-9           SECTION 2.  Subsection (a), Section 41.097, Education Code,
3-10     is amended to read as follows:
3-11           (a)  The total amount required under Section 41.093 for a
3-12     district to purchase attendance credits under this subchapter for
3-13     any school year is reduced by an amount equal to the product of the
3-14     district's costs under Section 6.06, Tax Code, for each [the
3-15     central] appraisal district in which it participates multiplied by
3-16     a percentage that is computed by dividing the total amount required
3-17     under Section 41.093 by the total amount of taxes imposed in the
3-18     district for that year less any amounts paid into a tax increment
3-19     fund under Chapter 311, Tax Code.
3-20           SECTION 3.  Subsection (b), Section 41.210, Education Code,
3-21     is amended to read as follows:
3-22           (b)  As soon as practicable after the detachment and
3-23     annexation of property, the chief appraiser of the appraisal
3-24     district in which the property is located [for the school district
3-25     from which the property is detached] shall send a written notice of
3-26     the detachment and annexation to the owner of any property taxable
 4-1     in a different school district as a result of the detachment and
 4-2     annexation.  The notice must include the name of the school
 4-3     district by which the property is taxable after the detachment and
 4-4     annexation.
 4-5           SECTION 4.  The following statutes are repealed:
 4-6                 (1)  Section 13.007, Education Code;
 4-7                 (2)  Section 6.025, Tax Code; and
 4-8                 (3)  Subsection (m), Section 6.03, Tax Code.
 4-9           SECTION 5.  (a)  Except as provided by Subsection (b) of this
4-10     section, this Act takes effect January 1, 2000.
4-11           (b)  This section takes effect September 1, 1999.
4-12           (c)  The changes in law made by this Act relating to the
4-13     appraisal of property for ad valorem tax purposes apply only to the
4-14     appraisal of property for a tax year that begins on or after
4-15     January 1, 2000.
4-16           (d)  The term of each appraisal district director in an
4-17     appraisal district described by Section 6.025, Tax Code, as that
4-18     law existed immediately before September 1, 1999, serving a
4-19     staggered term that but for this subsection would expire after
4-20     January 1, 2000, expires on January 1, 2000.  The appraisal
4-21     district board of directors shall fill the vacant directorships as
4-22     soon as practicable after January 1, 2000, as provided by
4-23     Subsection (l), Section 6.03, Tax Code.
4-24           (e)  Notwithstanding Section 6.03, Tax Code, a taxing unit is
4-25     entitled to vote in 1999 for appraisal district directors for terms
4-26     beginning on January 1, 2000, in each appraisal district in which
 5-1     the taxing unit will participate in 2000 under the law as amended
 5-2     by this Act.  The voting entitlement of each taxing unit entitled
 5-3     to vote for directors in 1999 is determined for each appraisal
 5-4     district by dividing the total dollar amount of property taxes
 5-5     imposed by the taxing unit for the 1996 tax year in the county for
 5-6     which the appraisal district is established by the sum of the total
 5-7     dollar amount of property taxes imposed in that county for that
 5-8     year by each taxing unit that is entitled to vote for directors of
 5-9     that appraisal district under this subsection in 1999, by
5-10     multiplying the quotient by 1,000, and by rounding the product to
5-11     the nearest whole number.  That number is multiplied by the number
5-12     of directorships to be filled.  A taxing unit located in two or
5-13     more counties is entitled to vote in the appraisal district
5-14     established for each county in which it is located, but only the
5-15     taxes imposed in 1998 in the county for which a district is
5-16     established are used to calculate the 1999 voting entitlement in
5-17     that district.  In a county in which the method of appraisal
5-18     district director selection has been changed pursuant to Section
5-19     6.031, Tax Code, the selection of directors required by this
5-20     section shall be made using the method of selection which would
5-21     have otherwise been in effect in that appraisal district as of the
5-22     effective date of this Act.
5-23           (f)  Notwithstanding Section 6.06, Tax Code, not later than
5-24     September 15, 1999, the chief appraiser of each appraisal district
5-25     shall revise the proposed 2000 budget for the district, if
5-26     necessary, to account for the changes in law made by this Act.
 6-1           (g)  Notwithstanding Section 6.06, Tax Code, for the 2000 tax
 6-2     year, each taxing unit participating in an appraisal district in
 6-3     2000 is allocated a portion of the amount of the 2000 budget for
 6-4     the district equal to the proportion that the total dollar amount
 6-5     of property taxes imposed in the county for which the district is
 6-6     established by the unit for the 1999 tax year bears to the sum of
 6-7     the total dollar amount of property taxes imposed in the county by
 6-8     each participating unit for that year.  If a taxing unit
 6-9     participates in two or more appraisal districts in 2000, only the
6-10     1999 taxes imposed in the county for which a district is
6-11     established are used to calculate the unit's cost allocations for
6-12     2000 in that district.
6-13           SECTION 6.  The importance of this legislation and the
6-14     crowded condition of the calendars in both houses create an
6-15     emergency and an imperative public necessity that the
6-16     constitutional rule requiring bills to be read on three several
6-17     days in each house be suspended, and this rule is hereby suspended.