S.B. 657 78(R)    BILL ANALYSIS


S.B. 657
By: Brimer
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, the calculation of the tax rate for a taxing entity includes
the total appraised value and 
all taxes imposed for all real property within the jurisdiction of that
entity, even property that the 
entity has agreed to pay into the tax increment fund for a reinvestment
zone. The 77th Texas 
Legislature enacted legislation to exclude "captured appraised value" and
the resulting "tax 
increment" for property in reinvestment zones from tax rate calculations,
but the exclusion was 
limited to counties with a populations of less than 500,000.  S.B. 657
provides that Section 
26.03, Tax Code, does not apply to school districts. This bill also
provides that the portion of the 
tax increment of a taxing unit that the unit has agreed to pay into the
tax increment fund for a 
certain reinvestment zone is not excluded from certain taxes imposed or
collected if in the same 
tax rate calculation there is no portion of captured appraised value
excluded from the value of 
property taxable by the unit under Subsection (c) for the same
reinvestment zone. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Amends Sections 26.03(b) and (d), Tax Code, as follows:

 (b) Provides that this section does not apply to a school district.
Deletes existing 
 language relating to this section only applying to a taxing unit, other
than a school 
 district, that is located in a county with a population of less than
500,000. 

 (d) Provides that the portion of the tax increment of a taxing unit that
the unit has agreed 
 to pay into the tax increment fund for a reinvestment zone is excluded
from the amount of 
 taxes imposed or collected by the unit in any tax rate calculation under
this chapter, 
 except that the portion of the tax increment is not excluded if in the
same tax rate 
 calculation there is no portion of captured appraised value excluded from
the value of 
 property taxable by the unit under Subsection (c) for the same
reinvestment zone. 

SECTION 2. Effective date: January 1, 2004.
           Makes application of this Act prospective.


EFFECTIVE DATE

January 1, 2004.