By Marchant H.B. No. 2140
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to municipal tax rate adjustments to compensate for
1-3 unfunded state and federal mandates.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle D, Chapter 26, Tax Code, is amended by
1-6 adding Section 26.046 to read as follows:
1-7 Sec. 26.046. MUNICIPAL TAX RATE ADJUSTMENT FOR STATE AND
1-8 FEDERAL MANDATES. (a) For each tax year in which a city adopts a
1-9 tax rate after this section takes effect, and in which one or more
1-10 state and federal mandates apply to the city, the effective tax
1-11 rate and the effective maintenance and operations rate for the city
1-12 are each increased by the rate calculated according to the
1-13 following formula:
1-14 (Current Tax Year's Total State and
1-15 Federal Mandates - Preceding Tax Year's
1-16 Total State and Federal Mandates)
1-17 Amount of Increase = _________________________
1-18 (Current Total Value - New Property Value)
1-19 (b) The city shall include a notice of the increase in the
1-20 effective tax rate and the effective maintenance and operations
1-21 rate provided by this section, including a brief description and
1-22 amount of the state and federal mandates, in the information
2-1 published under Section 26.04(e) and, if applicable, Section
2-2 26.06(b) of this code.
2-3 (c) In this section, "state and federal mandate" for a tax
2-4 year means:
2-5 (1) an expenditure made by the city during the 12
2-6 months prior to adoption of the tax rate, which was required to be
2-7 made by the city in order to comply with a state or federal law,
2-8 regulation, or rule, and for which a tax rate adjustment is not
2-9 otherwise provided for by this chapter; and
2-10 (2) the amount of any reduction in revenue during the
2-11 12 months prior to adoption of the tax rate, as a result of a state
2-12 or federal law, regulation, or rule, to which the city would be
2-13 otherwise entitled in the absence of the law, regulation, or rule,
2-14 and for which a tax rate adjustment is not otherwise provided for
2-15 by this chapter.
2-16 (d) The amount of each state and federal mandate calculated
2-17 under Subsection (c) shall be reduced by the amount of any state or
2-18 federal funding or assistance received during the same prior 12
2-19 month period which was provided to the city as reimbursement for
2-20 that mandated expenditure or revenue reduction, and to which the
2-21 city was not otherwise entitled.
2-22 (e) In the first tax year in which the city makes rate
2-23 adjustments under this section, the city shall calculate the
2-24 preceding tax year's total state and federal mandates for purposes
2-25 of Subsection (a) in the same manner as if this section had been in
2-26 effect for the preceding tax year, provided that nothing in this
3-1 section shall entitle the city to any tax rate adjustments for any
3-2 such preceding tax year.
3-3 (f) In a tax year to which this section applies, a reference
3-4 in this chapter to the city's effective tax rate, effective
3-5 maintenance and operations rate, or rollback tax rate refers to
3-6 that rate as adjusted under, or as a result of, this section.
3-7 SECTION 2. This Act takes effect immediately if it receives
3-8 a vote of two-thirds of all the members elected to each house, as
3-9 provided by Section 39, Article III, Texas Constitution. If this
3-10 Act does not receive the vote necessary for immediate effect, this
3-11 Act takes effect September 1, 2001.