By: Pitts, et al. (Senate Sponsor - Williams) H.B. No. 2
(In the Senate - Received from the House April 25, 2006;
April 25, 2006, read first time and referred to Committee on
Finance; April 29, 2006, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 11, Nays 4;
April 29, 2006, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 2 By: Williams
A BILL TO BE ENTITLED
AN ACT
relating to the allocation of certain revenue from franchise taxes,
motor vehicle sales and use taxes, and taxes on cigarettes and other
tobacco products to school district property tax relief and public
education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) Subchapter G, Chapter 403, Government Code,
is amended by adding Section 403.109 to read as follows:
Sec. 403.109. PROPERTY TAX RELIEF FUND. (a) The property
tax relief fund is a special fund in the state treasury outside the
general revenue fund. The fund is exempt from the application of
Sections 403.095 and 404.071. Interest and income from the deposit
and investment of money in the fund must be allocated monthly to the
fund.
(b) Until the state fiscal year beginning after the first
tax year in which the average school district maintenance and
operations tax rate is not more than $1.00 per $100 of taxable
value, money in the fund may be appropriated only for a purpose that
will result in a reduction of school district maintenance and
operations tax rates to rates that are less than the rates in effect
for the 2005 tax year.
(c) Beginning in the state fiscal year that begins after the
first tax year in which the average school district maintenance and
operations tax rate is not more than $1.00 per $100 of taxable
value:
(1) two-thirds of the money appropriated from the fund
may be appropriated only for a purpose that will result in a
reduction of the average school district maintenance and operations
tax rate to a rate that is not more than $0.75 per $100 of taxable
value, except that if two-thirds of the money appropriated from the
fund is not a sufficient amount to achieve that tax rate, two-thirds
of the money appropriated may be appropriated only for a purpose
that will result in the lowest practicable average school district
maintenance and operations tax rate; and
(2) one-third of the money appropriated from the fund
may be appropriated only to the Texas Education Agency for the
purpose of increasing the basic allotment under Section 42.101,
Education Code, and the guaranteed level of state and local funds
per weighted student for each cent of tax effort under Section
42.302, Education Code.
(d) Notwithstanding Subsection (c) and subject to
Subsection (e), beginning in the state fiscal year that begins
after the first tax year in which the average school district
maintenance and operations tax rate is not more than $0.75 per $100
of taxable value, any money remaining in the fund after a sufficient
amount of money is appropriated in that state fiscal year to
maintain an average school district maintenance and operations tax
rate of $0.75 per $100 of taxable value may be appropriated only to
the Texas Education Agency for the purpose described by Subsection
(c)(2).
(e) Before any amount of money may be appropriated from the
fund under Subsection (d), the comptroller must certify that the
amount of money in the fund is sufficient to maintain an average
school district maintenance and operations tax rate that is not
more than $0.75 per $100 of taxable value.
(f) To the extent to which maintenance and operations tax
rates are reduced using money appropriated from the fund,
reductions must be carried out so as not to increase the disparity
in revenue yield between districts of varying property wealth per
weighted student.
(b) This section takes effect only if H.B. No. 3, H.B. No. 4,
or H.B. No. 5, Acts of the 79th Legislature, 3rd Called Session,
2006, is enacted and becomes law. If none of those Acts become law,
this section has no effect.
SECTION 2. (a) Subchapter I, Chapter 171, Tax Code, is
amended by adding Section 171.4011 to read as follows:
Sec. 171.4011. ALLOCATION OF CERTAIN REVENUE TO PROPERTY
TAX RELIEF FUND. (a) Notwithstanding Section 171.401, beginning
with the state fiscal year that begins September 1, 2007, the
comptroller shall, for each state fiscal year, deposit to the
credit of the property tax relief fund under Section 403.109,
Government Code, an amount of revenue calculated by:
(1) determining the revenue derived from the tax
imposed by this chapter as it applied during that applicable state
fiscal year; and
(2) subtracting the revenue the comptroller estimates
that the tax imposed by this chapter, as it existed on August 31,
2007, would have generated if it had been in effect for that
applicable state fiscal year.
(b) If the amount under Subsection (a) is less than zero,
the comptroller shall consider the amount to be zero.
(b) Except as provided by Subsection (c) of this section,
this section takes effect September 1, 2007.
(c) This section takes effect only if H.B. No. 3, 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.
SECTION 3. (a) Subchapter G, Chapter 152, Tax Code, is
amended by adding Section 152.1222 to read as follows:
Sec. 152.1222. ALLOCATION OF CERTAIN TAX REVENUE TO
PROPERTY TAX RELIEF FUND. (a) Notwithstanding Section 152.122,
the comptroller shall deposit to the credit of the property tax
relief fund under Section 403.109, Government Code, the amount of
money received under Section 152.121 that is estimated to have been
derived from the computation of the tax imposed by this chapter on
the standard presumptive values of motor vehicles.
(b) The comptroller shall determine the amount described by
Subsection (a) using available statistical data. If satisfactory
data are not available, the comptroller may require county tax
assessor-collectors to report additional information to the
comptroller as necessary to make the allocation required by
Subsection (a).
(b) Except as provided by Subsection (c) of this section,
this section takes effect October 1, 2006.
(c) This section takes effect only if H.B. No. 4, 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.
SECTION 4. (a) Subchapter J, Chapter 154, Tax Code, is
amended by adding Section 154.6035 to read as follows:
Sec. 154.6035. ALLOCATION OF CERTAIN REVENUE TO PROPERTY
TAX RELIEF FUND. Notwithstanding Section 154.603, all proceeds
from the collection of taxes imposed by this chapter attributable
to the portion of the tax rate in excess of $20.50 per thousand on
cigarettes, regardless of weight, shall be deposited to the credit
of the property tax relief fund under Section 403.109, Government
Code.
(b) Subchapter H, Chapter 155, Tax Code, is amended by
adding Section 155.2415 to read as follows:
Sec. 155.2415. ALLOCATION OF CERTAIN REVENUE TO PROPERTY
TAX RELIEF FUND. Notwithstanding Section 155.241, all proceeds
from the collection of taxes imposed by Section 155.0211
attributable to the portion of the tax rate in excess of 35.213
percent of the manufacturer's list price, exclusive of any trade
discount, special discount, or deal, shall be deposited to the
credit of the property tax relief fund under Section 403.109,
Government Code.
(c) Except as provided by Subsection (d) of this section,
this section takes effect September 1, 2006.
(d) This section takes effect only if H.B. No. 5, 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.
SECTION 5. To the extent of a conflict between a provision
of this Act and a provision of any other Act of the 79th
Legislature, 3rd Called Session, 2006, the provision of this Act
prevails, regardless of relative dates of enactment.
SECTION 6. Except as otherwise provided by this Act, this
Act takes effect September 1, 2006.
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