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