By Barrientos S.B. No. 1804
Substitute the following for S.B. No. 1804:
By Oliveira C.S.S.B. No. 1804
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the calculation of the rollback tax rate of a taxing
1-3 unit in certain circumstances.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 26.04, Tax Code, is amended by adding
1-6 Subsections (k), (l), (m), (n), (o), (p), and (q) to read as
1-7 follows:
1-8 (k) This subsection applies to a taxing unit that has agreed
1-9 by written contract to transfer all or part of the responsibility
1-10 for funding a distinct department, function, or activity to another
1-11 taxing unit and that reduces its taxation for the purpose of
1-12 funding that distinct department, function, or activity if that
1-13 reduced portion of the funding of that department, function, or
1-14 activity in all or a majority of the territory of the taxing unit
1-15 is continued by another existing taxing unit or by a new taxing
1-16 unit. The rollback tax rate of a taxing unit to which this
1-17 subsection applies in the first tax year in which a budget is
1-18 adopted that reduces the funding of the department, function, or
1-19 activity is calculated as otherwise provided by this section,
1-20 except that last year's levy used to calculate the effective
1-21 maintenance and operations rate of the unit is reduced by the
1-22 decrease in the amount of maintenance and operations tax revenue
1-23 spent by the taxing unit on the department, function, or activity
2-1 compared to the amount of maintenance and operations tax revenue
2-2 spent in the 12 months preceding the month in which the
2-3 calculations required by this chapter are made. If the taxing unit
2-4 did not fund all or part of that department, function, or activity
2-5 for the full 12 months preceding the month in which the
2-6 calculations required by this chapter are made, the taxing unit
2-7 shall reduce last year's levy used for calculating the effective
2-8 maintenance and operations rate of the taxing unit by the amount of
2-9 the decrease in the amount of maintenance and operations tax
2-10 compared to the amount of revenue spent in the last full fiscal
2-11 year in which the taxing unit funded all or part of the department,
2-12 function, or activity.
2-13 (l) This subsection applies to a taxing unit that has agreed
2-14 by written contract to accept the transfer of all or part of the
2-15 responsibility for funding a distinct department, function, or
2-16 activity from another taxing unit and that funds all or part of
2-17 that distinct department, function, or activity if the funding for
2-18 a substantially similar department, function, or activity in all or
2-19 a majority of the territory of the taxing unit has been reduced by
2-20 another taxing unit, including a dissolved taxing unit. The
2-21 rollback tax rate of a taxing unit to which this subsection applies
2-22 in the first tax year after the other taxing unit reduced the
2-23 funding of the substantially similar department, function, or
2-24 activity in which a budget is adopted that allocates revenue to the
2-25 department, function, or activity is calculated as otherwise
2-26 provided by this section, except that last year's levy used to
2-27 calculate the effective maintenance and operations rate of the
3-1 taxing unit is increased by the amount of the decrease of
3-2 maintenance and operations tax revenue spent by the taxing unit
3-3 that reduced funding for the substantially similar department,
3-4 function, or activity compared to the amount of maintenance and
3-5 operations tax revenue spent on that department, function, or
3-6 activity in the 12 months preceding the month in which the
3-7 calculations required by this chapter are made. If the taxing
3-8 unit did not fund the department, function, or activity for the
3-9 full 12 months preceding the month in which the calculations
3-10 required by this chapter are made, the taxing unit may increase
3-11 last year's levy used to calculate the effective maintenance and
3-12 operations rate by an amount not to exceed the decrease in the
3-13 amount of property tax revenue spent by the other taxing unit to
3-14 fund the department, function, or activity compared to the amount
3-15 of maintenance and operations tax revenue spent in the last full
3-16 fiscal year before the other taxing unit reduced funding for the
3-17 department, function, or activity.
3-18 (m) In Subsections (k) and (l), "funding" includes a payment
3-19 made to another taxing unit in accordance with a written contract
3-20 for the operation of the department, function, or activity. The
3-21 term does not include a payment made by a taxing unit from funds
3-22 received from another taxing unit in accordance with a written
3-23 contract to operate the department, function, or activity.
3-24 (n) Notwithstanding any other provision of this section, for
3-25 purposes of calculating the rollback tax rate of a taxing unit
3-26 under Subsection (k) or (l), the effective maintenance and
3-27 operations rate of the taxing unit is increased or reduced only by
4-1 the rate that would generate the amount of ad valorem tax revenue
4-2 spent by the taxing unit on that part of the funding of the
4-3 department, function, or activity that is assumed or discontinued
4-4 by the taxing unit. If the department, function, or activity has
4-5 been funded by revenue sources other than ad valorem taxes, the
4-6 taxing unit may use any reasonable method to calculate the amount
4-7 of ad valorem tax revenue that is or has been spent to fund the
4-8 department, function, or activity.
4-9 (o) In a year in which a taxing unit calculates an
4-10 adjustment under Subsection (k) or (l), the taxing unit shall
4-11 publish in the manner provided by Subsection (e) a schedule that
4-12 includes the following elements:
4-13 (1) the name of the taxing unit transferring
4-14 responsibility for funding of the department, function, or
4-15 activity;
4-16 (2) the amount of property tax revenue spent by that
4-17 taxing unit to operate the department, function, or activity in the
4-18 12 months preceding the month in which the calculations required by
4-19 this chapter are made; and
4-20 (3) the name of the taxing unit that accepted funding
4-21 responsibility for a distinct department, function, or activity in
4-22 all or a majority of the territory of the taxing unit that
4-23 transferred responsibility for funding of the distinct department,
4-24 function, or activity.
4-25 (p) In the year immediately following a year in which the
4-26 rollback tax rate of a taxing unit is increased under Subsection
4-27 (l), the taxing unit shall publish in the manner provided by
5-1 Subsection (e) a schedule that includes the following elements:
5-2 (1) the amount of property tax revenue spent by the
5-3 taxing unit to fund the department, function, or activity for which
5-4 the taxing unit's rollback tax rate was increased under Subsection
5-5 (l) for the 12 months preceding the month in which the calculations
5-6 required by this chapter are made; and
5-7 (2) the amount published by the taxing unit in the
5-8 preceding tax year under Subsection (o)(2).
5-9 (q) This subsection and Subsections (k), (l), (m), (n), (o),
5-10 and (p) expire January 1, 2001.
5-11 SECTION 2. The importance of this legislation and the
5-12 crowded condition of the calendars in both houses create an
5-13 emergency and an imperative public necessity that the
5-14 constitutional rule requiring bills to be read on three several
5-15 days in each house be suspended, and this rule is hereby suspended,
5-16 and that this Act take effect and be in force from and after its
5-17 passage, and it is so enacted.