1-1     By:  Pitts (Senate Sponsor - Cain)                    H.B. No. 1468
 1-2           (In the Senate - Received from the House May 11, 2001;
 1-3     May 11, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 6, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the calculation of ad valorem tax rates for certain
1-10     taxing units.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Chapter 26, Tax Code, is amended by adding Section
1-13     26.03 to read as follows:
1-14           Sec. 26.03.  TREATMENT OF CAPTURED APPRAISED VALUE AND TAX
1-15     INCREMENT.  (a)  In this section, "captured appraised value,"
1-16     "reinvestment zone," "tax increment," and "tax increment fund" have
1-17     the meanings assigned by Chapter 311.
1-18           (b)  This section applies only to a taxing unit, other than a
1-19     school district, that is located in a county with a population of
1-20     less than 500,000.
1-21           (c)  The portion of the captured appraised value of real
1-22     property taxable by a taxing unit that corresponds to the portion
1-23     of the tax increment of the unit from that property that the unit
1-24     has agreed to pay into the tax increment fund for a reinvestment
1-25     zone is excluded from the value of property taxable by the unit in
1-26     any tax rate calculation under this chapter.
1-27           (d)  The portion of the tax increment of a taxing unit that
1-28     the unit has agreed to pay into the tax increment fund for a
1-29     reinvestment zone is excluded from the amount of taxes imposed or
1-30     collected by the unit in any tax rate calculation under this
1-31     chapter.
1-32           SECTION 2.  (a)  Except as provided by Subsection (b) of this
1-33     section, this Act applies to the tax rate calculations under
1-34     Chapter 26, Tax Code, for a taxing unit only for a tax year that
1-35     begins on or after the effective date of this Act.
1-36           (b)  This Act applies to the tax rate calculations under
1-37     Chapter 26, Tax Code, for a taxing unit for the 2001 tax year if:
1-38                 (1)  the chief appraiser of the appraisal district in
1-39     which the unit participates certifies the appraisal roll for the
1-40     unit for that tax year to the assessor for the unit on or after the
1-41     effective date of this Act; or
1-42                 (2)  the governing body of the unit votes to apply
1-43     Section 26.03, Tax Code, as added by this Act, to the unit's tax
1-44     rate calculations under Chapter 26, Tax Code, for the 2001 tax
1-45     year.
1-46           SECTION 3.  This Act takes effect immediately if it receives
1-47     a vote of two-thirds of all the members elected to each house, as
1-48     provided by Section 39, Article III, Texas Constitution.  If this
1-49     Act does not receive the vote necessary for immediate effect, this
1-50     Act takes effect September 1, 2001.
1-51                                  * * * * *