By: Barrientos S.B. No. 1804
99S0851/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the calculation of a tax rollback rate.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 26.04, Tax Code, is amended by amending
1-4 Subsections (i) and (j) and adding Subsections (k) and (l) to read
1-5 as follows:
1-6 (i) This subsection applies to a taxing unit that has agreed
1-7 by written contract to transfer all or part of the responsibility
1-8 for funding a distinct department, function, or activity to another
1-9 taxing unit and reduces its taxation for the purpose of funding
1-10 [discontinues operating] that distinct department, function, or
1-11 activity if that reduced portion of the funding [operation] of that
1-12 department, function, or activity in all or a majority of the
1-13 territory of the taxing unit is continued by another existing
1-14 taxing unit or by a new taxing unit. The rollback tax rate of a
1-15 taxing unit to which this subsection applies in the first tax year
1-16 in which a budget is adopted that reduces [does not allocate
1-17 revenue to] the funding of the [discontinued] department, function,
1-18 or activity is calculated as otherwise provided by this section,
1-19 except that last year's levy used to calculate the effective
1-20 maintenance and operations rate of the unit is reduced by the
1-21 decrease in the amount of maintenance and operations tax revenue
1-22 spent by the taxing unit on [to operate] the department, function,
1-23 or activity compared to the amount of maintenance and operations
1-24 tax revenue spent in [for] the 12 months preceding the month in
2-1 which the calculations required by this chapter are made [and in
2-2 which the unit operated the discontinued department, function, or
2-3 activity]. If the unit did not fund all or part of [operate] that
2-4 department, function, or activity for the full 12 months preceding
2-5 the month in which the calculations required by this chapter are
2-6 made, the unit shall reduce last year's levy used for calculating
2-7 the effective maintenance and operations rate of the unit by the
2-8 amount of the decrease in the amount of maintenance and operations
2-9 tax compared to the amount of revenue spent in the last full fiscal
2-10 year in which the unit funded all or part of [operated] the
2-11 [discontinued] department, function, or activity.
2-12 (j) This subsection applies to a taxing unit that had agreed
2-13 by written contract to accept the transfer of all or part of the
2-14 responsibility for funding a distinct department, function, or
2-15 activity from another taxing unit and funds all or part of
2-16 [operates] a distinct department, function, or activity if the
2-17 funding for [operation of] a substantially similar department,
2-18 function, or activity in all or a majority of the territory of the
2-19 taxing unit has been reduced [discontinued] by another taxing unit,
2-20 including a dissolved taxing unit. The rollback tax rate of a
2-21 taxing unit to which this subsection applies in the first tax year
2-22 after the other taxing unit reduced the funding of [discontinued]
2-23 the substantially similar department, function, or activity in
2-24 which a budget is adopted that allocates revenue to the department,
2-25 function, or activity is calculated as otherwise provided by this
2-26 section, except that last year's levy used to calculate the
3-1 effective maintenance and operations rate of the unit is increased
3-2 by the amount of the decrease of maintenance and operations tax
3-3 revenue spent by the taxing unit that reduced funding for
3-4 [discontinued operating] the substantially similar department,
3-5 function, or activity compared to the amount of maintenance and
3-6 operations tax revenue spent on [to operate] that department,
3-7 function, or activity for the 12 months preceding the month in
3-8 which the calculations required by this chapter are made [and in
3-9 which the unit operated the discontinued department, function, or
3-10 activity]. If the unit did not operate the discontinued
3-11 department, function, or activity for the full 12 months preceding
3-12 the month in which the calculations required by this chapter are
3-13 made, the unit may increase last year's levy used to calculate the
3-14 effective maintenance and operations rate by an amount not to
3-15 exceed the decrease in the amount of property tax revenue spent by
3-16 the other [discontinuing] unit to fund [operate] the [discontinued]
3-17 department, function, or activity compared to the amount of
3-18 maintenance and operations tax revenue spent in the last full
3-19 fiscal year before [in which] the other [discontinuing] unit
3-20 reduced funding for [operated] the department, function, or
3-21 activity.
3-22 (k) As the term is used in Subsections (i) and (j),
3-23 "funding" includes a payment made to another taxing unit through a
3-24 written contract for the operation of the department, function, or
3-25 activity. The term does not include a payment made by a taxing
3-26 unit from funds received from another taxing unit through a written
4-1 contract to operate the department, function, or activity.
4-2 (l) Notwithstanding any other provision of this section, the
4-3 rollback tax rate of a taxing unit is increased or reduced under
4-4 Subsection (i) or (j) only in the amount of ad valorem tax revenue
4-5 spent by the taxing unit on that part of the funding of the
4-6 department, function, or activity that is assumed or discontinued
4-7 by the taxing authority. If the department, function, or activity
4-8 has been funded by revenue sources other than ad valorem taxes, the
4-9 taxing unit may use any reasonable method to calculate the amount
4-10 of ad valorem tax revenue that is or has been spent to fund the
4-11 department, function, or activity.
4-12 SECTION 2. This Act takes effect September 1, 1999.
4-13 SECTION 3. The importance of this legislation and the
4-14 crowded condition of the calendars in both houses create an
4-15 emergency and an imperative public necessity that the
4-16 constitutional rule requiring bills to be read on three several
4-17 days in each house be suspended, and this rule is hereby suspended.