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A BILL TO BE ENTITLED
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AN ACT
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relating to the appropriation of money from the property tax relief |
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fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 403.109, Government Code, is amended to |
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read as follows: |
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Sec. 403.109. PROPERTY TAX RELIEF FUND. (a) The property |
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tax relief fund is a special fund in the state treasury outside the |
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general revenue fund. The fund is exempt from the application of |
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Sections 403.095 and 404.071. Interest and income from the deposit |
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and investment of money in the fund must be allocated monthly to the |
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fund. |
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(b) Until the state fiscal year beginning after the first |
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tax year in which the residence homestead exemption is increased to |
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$45,000 or the average school district maintenance and operations |
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tax rate is not more than $1.33 [$1.00] per $100 of taxable value, |
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money in the fund may be appropriated only for covering the cost of |
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increasing the residence homestead exemption or a purpose that will |
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result in a reduction of school district maintenance and operations |
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tax rates to rates that are less than the rates in effect for the |
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2005 tax year. |
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(c) Beginning in the state fiscal year that begins after the |
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first tax year in which the residence homestead exemption is |
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increased to $45,000 or the average school district maintenance and |
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operations tax rate is not more than $1.33 [$1.00] per $100 of |
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taxable value, any money remaining in the fund after a sufficient |
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amount of money is appropriated in that state fiscal year to |
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maintain the cost of increasing the residence homestead exemption |
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or to maintain an average school district maintenance and |
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operations tax rate of $1.33 [$1.00] per $100 of taxable value may |
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be appropriated only as follows: |
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(1) two-thirds of the money appropriated from the fund |
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may be appropriated only for a purpose that will result in a further |
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increase in the residence homestead exemption or reduction of the |
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average school district maintenance and operations tax rate; and |
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(2) one-third of the money appropriated from the fund |
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may be appropriated only for the purpose of increasing the level of |
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equalization of school district enrichment tax effort to the extent |
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that limits reliance by school districts on local property tax |
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effort and decreases the enrichment tax rates of districts. |
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(d) To the extent to which maintenance and operations tax |
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rates are reduced using money appropriated from the fund, |
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reductions must be carried out so as not to increase disparity in |
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revenue yield between districts of varying property wealth per |
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weighted student. |
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SECTION 2. This Act takes effect September 1, 2009. |