Amend CSHB 3928 by adding the following appropriately
numbered SECTIONS to the bill and renumbering the subsequent
SECTIONS of the bill accordingly:
SECTION ____. Subchapter A, Chapter 171, Tax Code, is amended
by adding Section 171.0025 to read as follows:
Sec. 171.0025. ANNUAL RATE ADJUSTMENTS TO MAINTAIN SCHOOL
DISTRICT MAINTENANCE AND OPERATIONS TAX RATES. (a) Beginning with
the calendar year following the first tax year in which the average
school district maintenance and operations tax rate is equal to or
less than 70 cents per $100 of taxable value of property, the rates
of the franchise tax provided by Sections 171.002(a) and (b) are
adjusted in accordance with Subsection (c) 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 of an
amount of revenue sufficient to maintain the average school
district maintenance and operations tax rate at the rate of 70 cents
per $100 of taxable value of property, except that the rates of the
franchise tax may not be increased to rates that exceed the rates
provided by Sections 171.002(a) and (b).
(b) The rates provided by Sections 171.002(a) and (b) must be
adjusted under this section by equal percentages.
(c) 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 70
cents per $100 of taxable value of property and in each subsequent
year:
(A) compute the new franchise tax rates as
provided by this section;
(B) submit the new franchise tax rates to the
secretary of state for publication in the Texas Register; and
(C) notify the comptroller of the applicable new
franchise tax rates.
(d) The new franchise tax rates computed under Subsection (c)
take effect on the January 1 following the date the computation is
made and apply to reports originally due on or after that date.
(e) Section 171.003 does not apply to an increase in a
franchise tax rate under this section.
SECTION ____. Section 171.003(a), Tax Code, is amended to
read as follows:
(a) Except as provided by Section 171.0025, an [An] increase
in a rate provided by Section 171.002(a) or (b) takes effect only if
approved by a majority of the registered voters voting in a
statewide referendum held on the question of increasing the rate.
The referendum must specify the increased rate or rates.