79(1) HB3 - 2nd reading F21 (S)






	

Amend CSHB 3 by adding the following appropriately numbered 

article and renumbering the subsequent articles of the bill 

accordingly:





ARTICLE __.  BUY-DOWN OF SCHOOL DISTRICT TAXES

	SECTION __.01.  Chapter 403, Government Code, is amended by 

adding Subchapter O to read as follows:



SUBCHAPTER O.  DISTRIBUTION OF SALES AND USE TAX REVENUE



FOR SCHOOL DISTRICT TAX RATE REDUCTION

	Sec. 403.351.  DISTRIBUTION OF SALES AND USE TAX REVENUE FOR 

TAX RATE REDUCTION.  (a) Each month the comptroller shall 

distribute to the school districts in this state for tax rate 

reduction an amount equal to the amount of revenue received by this 

state in the preceding month that is attributable to the imposition 

of the sales and use tax imposed by Chapter 151, Tax Code, at a rate 

of one-half of one percent.

	(b)  The amount distributed shall be apportioned among the 

school districts in amounts that, applied to the total taxable 

value of property in each district determined under Subchapter M 

for the most recent year for which the information is available, 

would reduce the rate of each school district's maintenance and 

operations tax by the same percentage, except that a school 

district maintenance and operations tax rate may not be reduced to 

less than 75 cents for each $100 of taxable value.

	(c)  The money received by each school district under this 

section must be applied to reducing the rollback tax rate of the 

district as provided by Section 26.08, Tax Code.

	SECTION __.02.  Section 26.08, Tax Code, is amended by 

adding Subsection (n) to read as follows:

	(n)  For the 2005 tax year, the rollback tax rate of each 

school district shall be reduced by the rate that, when applied to 

current total value, would impose taxes in an amount equal to the 

amount the comptroller estimates the district will receive during 

the 2005-2006 school year under Subchapter O, Chapter 403, 

Government Code.  For the 2006 tax year, the rollback tax rate of 

each school district shall be reduced by the rate that, when applied 

to current total value, would impose taxes in an amount equal to the 

amount by which the actual amount received by the district during 

the 2005-2006 school year under Subchapter O, Chapter 403, 

Government Code, exceeded the amount the comptroller estimated the 

school district would receive, if applicable, or shall be increased 

by the rate that, when applied to current total value, would impose 

taxes in an amount equal to the amount by which the estimate 

exceeded the actual amount received, if applicable.  For the 2007 

and subsequent tax years, the rollback tax rate of each school 

district shall be reduced by the rate that, when applied to current 

total value, would impose taxes in an amount equal to the amount by 

which the amount received by the district during the preceding 

school year under Subchapter O, Chapter 403, Government Code, 

exceeded the amount received during the school year preceding that 

school year, if applicable, or shall be increased by the rate that, 

when applied to current total value, would impose taxes in an amount 

equal to the amount by which the amount received in the school year 

preceding the preceding school year exceeded the amount received in 

the preceding school year.

	SECTION __.03.  (a)  The changes in law made by this article 

apply to the tax rate of a school district beginning with the 2005 

tax year.

	(b)  If before the effective date of this Act, the governing 

body of a school district adopted an ad valorem tax rate for the 

district for the 2005 tax year under the law in effect immediately 

before the effective date of this Act, and the adopted ad valorem 

tax rate is greater than the rollback tax rate of the district for 

the 2005 tax year as calculated under the law as amended by this 

article:

		(1)  on the effective date of this Act, the ad valorem 

tax rate adopted for the district before the effective date of this 

Act is invalidated; and

		(2)  the governing body shall adopt a new ad valorem tax 

rate for the 2005 tax year in accordance with the changes in law 

made by this article.

	(c)  If tax bills for the 2005 tax year were sent by the tax 

assessor for a school district pursuant to a tax rate invalidated 

under Subsection (b)(1) of this section, the tax assessor for the 

school district shall prepare and mail a new tax bill for the 2005 

tax year to each taxpayer of the district in the manner required by 

Chapter 31, Tax Code.  If a taxpayer pays the taxes for the 2005 tax 

year pursuant to a tax rate invalidated under Subsection (b)(1) of 

this section, the school district shall promptly refund any 

difference between the tax paid and the tax due at the rate adopted 

under Subsection (b)(2) of this section.

	(d)  If this Act is passed by the legislature without 

receiving a vote of two-thirds of all the members elected to each 

house, any action taken before the effective date of this Act in 

preparation for the implementation of the changes in law made by 

this article, including adoption of a tax rate, by an officer or 

employee or the governing body of a school district that the 

officer, employee, or governing body determines is necessary or 

appropriate and that the officer, employee, or governing body would 

have been authorized to take had this article been in effect at the 

time of the action is validated as of the effective date of this 

Act.  Any public notice required by Chapter 26, Tax Code, or Chapter 

44, Education Code, given before the effective date of this Act that 

includes an additional statement that the tax rate for the school 

district will be adopted in accordance with the changes in law made 

by this article is validated as of the effective date of this Act.