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


Senate Research CenterC.S.S.B. 657
78R12569 SMH-FBy: Brimer
Finance
4/25/2003
Committee Report (Substituted)


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 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.  C.S.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

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

SECTION BY SECTION 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.