SRC-TJG S.B. 657 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 657
78R2378 RCJ-DBy: Brimer
Finance
3/11/2003
As Filed


DIGEST 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 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.  As proposed, S.B. 657 repeals Section
26.03(b), Tax Code, which limits the applicability of the section to a
taxing unit, other than a school district, located in a county with a
population of less than 500,000.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Repealer: Section 26.03(b), Tax Code (Applies to a taxing
unit, other than a school district, that is located in a county with a
population of less than 500,000.) 

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