By: Keffer of Eastland H.B. No. 148
A BILL TO BE ENTITLED
AN ACT
relating to the limitation of ad valorem tax rates of school
districts and other taxing units.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.012, Tax Code, is amended by adding
subdivisions (2-a) and (10-a) to read as follows:
(2-a) "Consumer price index" means the average over a
calendar year of the Consumer Price Index for All Urban Consumers
(CPI-U), U.S. City Average, or its successor in function, published
monthly by the United States Bureau of Labor Statistics.
(10-a) "Inflation rate" means the amount, expressed in
decimal form rounded to the nearest thousandth, computed by
determining the percentage change in the consumer price index for
the preceding calendar year as compared to the consumer price index
for the calendar year preceding that calendar year.
SECTION 2. Section 26.04, Tax Code, is amended by adding
Subsection (b-1) and amending Subsection (c) to read as follows:
(b-1) By August 1 or as soon thereafter as practicable, the
comptroller shall determine the inflation rate for the current year
and publish the rate in the Texas Register.
(c) An officer or employee designated by the governing body
shall calculate the effective tax rate and the rollback tax rate for
the unit, where:
(1) "Effective tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
EFFECTIVE TAX RATE =
(LAST YEAR'S LEVY - LOST PROPERTY LEVY)
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(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
; and
(2) "Rollback tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS
RATE x (1 + INFLATION RATE) [1.08]) + CURRENT DEBT RATE
SECTION 3. Sections 26.041(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) In the first year in which an additional sales and use
tax is required to be collected, the effective tax rate and rollback
tax rate for the unit are calculated according to the following
formulas:
EFFECTIVE TAX RATE =
(LAST YEAR'S LEVY - LOST PROPERTY LEVY)
------------------------------------
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
- SALES TAX GAIN RATE
and
ROLLBACK RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS
RATE x (1 + INFLATION RATE) [1.08])
+ CURRENT DEBT RATE - SALES TAX GAIN RATE
where "sales tax gain rate" means a number expressed in
dollars per $100 of taxable value, calculated by dividing the
revenue that will be generated by the additional sales and use tax
in the following year as calculated under Subsection (d) of this
section by the current total value.
(b) Except as provided by Subsections (a) and (c) of this
section, in a year in which a taxing unit imposes an additional
sales and use tax the rollback tax rate for the unit is calculated
according to the following formula, regardless of whether the unit
levied a property tax in the preceding year:
ROLLBACK RATE =
[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE X (1 +
INFLATION RATE)[1.08]) /
(TOTAL CURRENT VALUE - NEW PROPERTY VALUE)] + (CURRENT
DEBT RATE - SALES TAX REVENUE RATE)
where "last year's maintenance and operations expense" means
the amount spent for maintenance and operations from property tax
and additional sales and use tax revenues in the preceding year, and
"sales tax revenue rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that will
be generated by the additional sales and use tax in the current year
as calculated under Subsection (d) of this section by the current
total value.
(c) In a year in which a taxing unit that has been imposing
an additional sales and use tax ceases to impose an additional sales
and use tax the effective tax rate and rollback tax rate for the
unit are calculated according to the following formulas:
EFFECTIVE TAX RATE =
[(LAST YEAR'S LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS RATE
and
ROLLBACK TAX RATE =
[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE X (1 +
INFLATION RATE)[1.08]) /
(TOTAL CURRENT VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT
RATE
where "sales tax loss rate" means a number expressed in
dollars per $100 of taxable value, calculated by dividing the
amount of sales and use tax revenue generated in the last four
quarters for which the information is available by the current
total value and "last year's maintenance and operations expense"
means the amount spent for maintenance and operations from property
tax and additional sales and use tax revenues in the preceding year.
SECTION 4. Sections 26.08(i) and (k), Tax Code, are amended
to read as follows:
(i) For purposes of this section, the rollback tax rate of a
school district is the sum of:
(1) the tax rate that, applied to the current total
value for the district, would impose taxes in an amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, would provide the same amount
of state funds distributed under Chapter 42 and maintenance and
operations taxes of the district per student in weighted average
daily attendance for that school year that would have been
available to the district in the preceding year if the funding
elements for Chapters 41 and 42, Education Code, for the current
year had been in effect for the preceding year;
(2) the inflation rate [of $0.06 per $100 of taxable
value]; and
(3) the district's current debt rate.
(k) For purposes of this section, for the 2003, 2004, 2005,
2006, 2007, or 2008 tax year, for a school district that is entitled
to state funds under Sections 1581.1015(d), (e), and (f) [Section
4(a-1), (a-2), (a-3), (a-4), (a-5), or (a-6), Article 3.50-9],
Insurance Code, the rollback tax rate of the district is the sum of:
(1) the tax rate that, applied to the current total
value for the district, would impose taxes in an amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, would provide the same amount
of state funds distributed under Chapter 42 and maintenance and
operations taxes of the district per student in weighted average
daily attendance for that school year that would have been
available to the district in the preceding year if the funding
elements for Chapters 41 and 42, Education Code, for the current
year had been in effect for the preceding year;
(2) the tax rate that, applied to the current total
value for the district, would impose taxes in the amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, permits the district to comply
with Section 1581.052 [3, Article 3.50-9], Insurance Code;
(3) the inflation rate [of $0.06 per $100 of taxable
value]; and
(4) the district's current debt rate.
SECTION 5. Section 49.236, Water Code, as added by Chapters
248 and 335, Acts of the 78th Legislature, Regular Session, 2003, is
repealed.
SECTION 6. This Act applies beginning with the 2007 tax
year.
SECTION 7. This Act takes effect January 1, 2007.