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A BILL TO BE ENTITLED
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AN ACT
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relating to providing for a reduction of the limitation on the total |
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amount of ad valorem taxes that may be imposed by a school district |
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on the residence homesteads of the elderly or disabled to reflect |
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any reduction in the school district's tax rate and protecting a |
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school district against any resulting loss in local revenue. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.26, Tax Code, is amended by adding |
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Subsections (a-1), (a-2), and (a-3) to read as follows: |
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(a-1) Notwithstanding the other provisions of this section, |
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if in the 2007 tax year an individual qualifies for a limitation on |
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tax increases provided by this section on the individual's |
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residence homestead and the first tax year the individual or the |
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individual's spouse qualified for an exemption under Section |
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11.13(c) for the same homestead was the 2006 tax year, the amount of |
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the limitation provided by this section on the homestead in the 2007 |
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tax year is equal to the amount computed by: |
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(1) multiplying the amount of tax the school district |
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imposed on the homestead in the 2006 tax year by a fraction the |
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numerator of which is the tax rate of the district for the 2007 tax |
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year and the denominator of which is the tax rate of the district |
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for the 2006 tax year; and |
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(2) adding any tax imposed in the 2007 tax year |
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attributable to improvements made in the 2006 tax year as provided |
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by Subsection (b) to the lesser of the amount computed under |
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Subdivision (1) or the amount of tax the district imposed on the |
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homestead in the 2006 tax year. |
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(a-2) Notwithstanding the other provisions of this section, |
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if in the 2007 tax year an individual qualifies for a limitation on |
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tax increases provided by this section on the individual's |
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residence homestead and the first tax year the individual or the |
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individual's spouse qualified for an exemption under Section |
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11.13(c) for the same homestead was a tax year before the 2006 tax |
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year, the amount of the limitation provided by this section on the |
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homestead in the 2007 tax year is equal to the amount computed by: |
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(1) multiplying the amount of tax the school district |
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imposed on the homestead in the 2005 tax year by a fraction the |
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numerator of which is the tax rate of the district for the 2006 tax |
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year and the denominator of which is the tax rate of the district |
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for the 2005 tax year; |
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(2) adding any tax imposed in the 2006 tax year |
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attributable to improvements made in the 2005 tax year as provided |
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by Subsection (b) to the lesser of the amount computed under |
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Subdivision (1) or the amount of tax the district imposed on the |
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homestead in the 2005 tax year; |
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(3) multiplying the amount computed under Subdivision |
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(2) by a fraction the numerator of which is the tax rate of the |
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district for the 2007 tax year and the denominator of which is the |
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tax rate of the district for the 2006 tax year; and |
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(4) adding to the lesser of the amount computed under |
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Subdivision (2) or (3) any tax imposed in the 2007 tax year |
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attributable to improvements made in the 2006 tax year, as provided |
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by Subsection (b). |
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(a-3) Except as provided by Subsection (b), a limitation on |
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tax increases provided by this section on a residence homestead |
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computed under Subsection (a-1) or (a-2) continues to apply to the |
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homestead in subsequent tax years until the limitation expires. |
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SECTION 2. Section 42.2511(a), Education Code, is amended |
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to read as follows: |
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(a) Notwithstanding any other provision of this chapter, a |
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school district is entitled to additional state aid to the extent |
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that state aid under this chapter based on the determination of the |
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school district's taxable value of property as provided under |
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Subchapter M, Chapter 403, Government Code, does not fully |
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compensate the district for ad valorem tax revenue lost due to: |
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(1) the increase in the homestead exemption under |
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Section 1-b(c), Article VIII, Texas Constitution, as proposed by |
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H.J.R. No. 4, 75th Legislature, Regular Session, 1997, and the |
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additional limitation on tax increases under Section 1-b(d), |
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Article VIII, Texas Constitution, as proposed by H.J.R. No. 4, 75th |
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Legislature, Regular Session, 1997; and |
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(2) the reduction of the limitation on tax increases |
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to reflect any reduction in the school district tax rate as provided |
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by Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable. |
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SECTION 3. Section 42.302(a-1), Education Code, is amended |
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to read as follows: |
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(a-1) In this section, "wealth per student" has the meaning |
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assigned by Section 41.001. For purposes of Subsection (a), the |
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dollar amount guaranteed level of state and local funds per |
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weighted student per cent of tax effort ("GL") for a school district |
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is: |
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(1) the amount of district tax revenue per weighted |
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student per cent of tax effort available to a district at the 88th |
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percentile in wealth per student, as determined by the commissioner |
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in cooperation with the Legislative Budget Board, for the |
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district's maintenance and operations tax effort equal to or less |
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than the rate equal to the product of the state compression |
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percentage, as determined under Section 42.2516, multiplied by the |
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maintenance and operations tax rate adopted by the district for the |
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2005 tax year; |
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(2) the amount of district tax revenue per weighted |
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student per cent of tax effort that would be available to the Austin |
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Independent School District, as determined by the commissioner in |
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cooperation with the Legislative Budget Board, if the reduction of |
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the limitation on tax increases as provided by Section 11.26(a-1), |
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(a-2), or (a-3), Tax Code, did not apply, for the first six cents by |
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which the district's maintenance and operations tax rate exceeds |
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the rate equal to the product of the state compression percentage, |
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as determined under Section 42.2516 and notwithstanding the |
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limitation on district enrichment tax rate ("DTR") under Section |
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42.303, multiplied by the maintenance and operations tax rate |
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adopted by the district for the 2005 tax year; and |
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(3) $31.95, for the district's maintenance and |
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operations tax effort that exceeds the amount of tax effort |
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described by Subdivision (2). |
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SECTION 4. Section 403.302, Government Code, is amended by |
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amending Subsection (j) and adding Subsection (j-1) to read as |
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follows: |
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(j) For purposes of Section 42.2511, Education Code, the |
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comptroller shall certify to the commissioner of education: |
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(1) a final value for each school district computed on |
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a residence homestead exemption under Section 1-b(c), Article VIII, |
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Texas Constitution, of $5,000; [and] |
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(2) a final value for each school district computed |
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on: |
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(A) a residence homestead exemption under |
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Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and |
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(B) the effect of the additional limitation on |
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tax increases under Section 1-b(d), Article VIII, Texas |
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Constitution, as proposed by H.J.R. No. 4, 75th Legislature, |
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Regular Session, 1997; and |
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(3) a final value for each school district computed on |
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the effect of the reduction of the limitation on tax increases to |
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reflect any reduction in the school district tax rate as provided by |
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Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable. |
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(j-1) For purposes of applying Subsection (j)(3) in the |
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2007-2008 school year, the comptroller shall compute the final |
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value under that subsection as if the reduction of the limitation on |
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tax increases to reflect any reduction in the school district tax |
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rate as provided by Section 11.26(a-1) or (a-2), Tax Code, as |
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applicable, had taken effect in the 2006 tax year. This subsection |
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expires September 1, 2008. |
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SECTION 5. This Act applies beginning with the tax year that |
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begins January 1, 2007. |
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SECTION 6. This Act takes effect on the date on which the |
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constitutional amendment proposed by the 80th Legislature, Regular |
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Session, 2007, authorizing the legislature to provide for a |
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reduction of the limitation on the total amount of ad valorem taxes |
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that may be imposed for public school purposes on the residence |
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homesteads of the elderly or disabled to reflect any reduction in |
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the rate of those taxes for the 2006 and 2007 tax years takes |
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effect, if that constitutional amendment is approved by the voters. |
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If that constitutional amendment is not approved by the voters, |
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this Act has no effect. |
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