1-1                                   AN ACT
 1-2     relating to the calculation of ad valorem tax rates for certain
 1-3     taxing units.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 26, Tax Code, is amended by adding Section
 1-6     26.03 to read as follows:
 1-7           Sec. 26.03.  TREATMENT OF CAPTURED APPRAISED VALUE AND TAX
 1-8     INCREMENT.  (a)  In this section, "captured appraised value,"
 1-9     "reinvestment zone," "tax increment," and "tax increment fund" have
1-10     the meanings assigned by Chapter 311.
1-11           (b)  This section applies only to a taxing unit, other than a
1-12     school district, that is located in a county with a population of
1-13     less than 500,000.
1-14           (c)  The portion of the captured appraised value of real
1-15     property taxable by a taxing unit that corresponds to the portion
1-16     of the tax increment of the unit from that property that the unit
1-17     has agreed to pay into the tax increment fund for a reinvestment
1-18     zone is excluded from the value of property taxable by the unit in
1-19     any tax rate calculation under this chapter.
1-20           (d)  The portion of the tax increment of a taxing unit that
1-21     the unit has agreed to pay into the tax increment fund for a
1-22     reinvestment zone is excluded from the amount of taxes imposed or
1-23     collected by the unit in any tax rate calculation under this
1-24     chapter.
 2-1           SECTION 2.  (a)  Except as provided by Subsection (b) of this
 2-2     section, this Act applies to the tax rate calculations under
 2-3     Chapter 26, Tax Code, for a taxing unit only for a tax year that
 2-4     begins on or after the effective date of this Act.
 2-5           (b)  This Act applies to the tax rate calculations under
 2-6     Chapter 26, Tax Code, for a taxing unit for the 2001 tax year if:
 2-7                 (1)  the chief appraiser of the appraisal district in
 2-8     which the unit participates certifies the appraisal roll for the
 2-9     unit for that tax year to the assessor for the unit on or after the
2-10     effective date of this Act; or
2-11                 (2)  the governing body of the unit votes to apply
2-12     Section 26.03, Tax Code, as added by this Act, to the unit's tax
2-13     rate calculations under Chapter 26, Tax Code, for the 2001 tax
2-14     year.
2-15           SECTION 3.  This Act takes effect immediately if it receives
2-16     a vote of two-thirds of all the members elected to each house, as
2-17     provided by Section 39, Article III, Texas Constitution.  If this
2-18     Act does not receive the vote necessary for immediate effect, this
2-19     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1468 was passed by the House on May
         10, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1468 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor