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Floor Packet Page No. 13                                                    



	

Amend CSHB 3 as follows:                                                     

	(1)  On page 14, between  lines 12 and 13, insert the 

following:             

	Sec. 171.0025.  ANNUAL RATE CHANGE TO MAINTAIN SCHOOL 

DISTRICT MAINTENANCE AND OPERATIONS TAX RATES.  (a)  On January 1 of 

each year beginning with the year following the first tax year in 

which the average school district maintenance and operations tax 

rate is equal to or less 60 cents per $100 of taxable value of 

property, the rate of the franchise tax is increased or decreased by 

the percentage that is necessary to provide for the deposit to the 

credit of the property tax relief fund as required by Section 

171.4011 an amount of revenue sufficient to maintain the average 

school district maintenance and operations tax rate at that rate, 

except that the rate of the franchise tax may not be increased to a 

rate that exceeds the rate provided by Section 171.002.

	(b)  Not later than November 1 of each year, the Legislative 

Budget Board shall:

		(1)  determine using information provided by the Texas 

Education Agency the average school district maintenance and 

operations tax rate for that year; and

		(2)  beginning in the first year in which the 

computation under Subdivision (1) indicates that the average school 

district maintenance and operations tax rate is equal to or less 

than 60 cents per $100 of taxable value of property and in each 

subsequent year:

			(A)  compute the new franchise tax rate as 

provided by this section for the privilege period that begins on or 

after the date the computation is made;

			(B)  submit the new franchise tax rate to the 

secretary of state for publication in the Texas Register; and

			(C)  notify the comptroller of the applicable new 

franchise tax rate.

	(2)  Add the following appropriately numbered section and 

renumber the subsequent sections of the bill accordingly:

	SECTION ____.  Section 171.0025, Tax Code, as added by this 

Act, takes effect only if HB 2, Acts of the 79th Legislature, 3rd 

Called Session, 2006, is enacted and becomes law.  If that Act does 

not become law, this section has no effect.