78R1403 RCJ-D

By:  Eiland                                                       H.B. No. 925



A BILL TO BE ENTITLED

AN ACT

relating to the rollback tax rate for certain taxing units.                   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 26, Tax Code, is amended by adding 
Section 26.042 to read as follows:
	Sec. 26.042.  ROLLBACK TAX RATE FOR TAXING UNITS WITH LOW TAX 
LEVIES.  (a)  This section applies only to a taxing unit to which 
Section 26.052 applies, except that, if the taxing unit adopts a tax 
rate in an amount that, had the taxing unit originally proposed that 
tax rate, would have made Section 26.052 inapplicable to the taxing 
unit, the rollback tax rate for the taxing unit is calculated as if 
this section did not apply to the unit.
	(b)  The rollback tax rate for a taxing unit to which this 
section applies is calculated according to the applicable formula 
for the calculation of the rollback tax rate otherwise provided by 
this chapter, except that the factor by which the effective 
maintenance and operations rate or last year's maintenance and 
operations expense, as applicable, is multiplied in that formula is 
1.10 instead of 1.08.
	SECTION 2.  This Act takes effect January 1, 2004, and 
applies only to taxes imposed for a tax year that begins on or after 
that date.