|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to public school finance and certain limitations on the ad |
|
valorem tax rate of a school district. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 41.002(a), Education Code, is amended to |
|
read as follows: |
|
(a) A school district may not have a wealth per student that |
|
exceeds: |
|
(1) the wealth per student that generates the amount |
|
of maintenance and operations tax revenue per weighted student |
|
available to a district with maintenance and operations tax revenue |
|
per cent of tax effort equal to the maximum amount provided per cent |
|
under Section 42.101, for the district's maintenance and operations |
|
tax effort equal to or less than the rate equal to the product of the |
|
state compression percentage, as determined under Section 42.2516, |
|
multiplied by the maintenance and operations tax rate adopted by |
|
the district for the 2005 tax year; |
|
(2) the wealth per student that generates the amount |
|
of maintenance and operations tax revenue per weighted student |
|
available to the Austin Independent School District, as determined |
|
by the commissioner in cooperation with the Legislative Budget |
|
Board, for the first six cents by which the district's maintenance |
|
and operations tax rate exceeds the rate equal to the product of the |
|
state compression percentage, as determined under Section 42.2516, |
|
multiplied by the maintenance and operations tax rate adopted by |
|
the district for the 2005 tax year, subject to Section 41.093(b-1); |
|
or |
|
(3) the wealth per student that generates the greater |
|
of the amount of maintenance and operations tax revenue per |
|
weighted student available to the Austin Independent School |
|
District, as determined by the commissioner in cooperation with the |
|
Legislative Budget Board, or the amount of district tax revenue per |
|
weighted student used for purposes of this subdivision in the |
|
preceding school year [$319,500], for the district's maintenance |
|
and operations tax effort that exceeds the first six cents by which |
|
the district's maintenance and operations tax effort exceeds the |
|
rate equal to the product of the state compression percentage, as |
|
determined under Section 42.2516, multiplied by the maintenance and |
|
operations tax rate adopted by the district for the 2005 tax year. |
|
SECTION 2. Section 41.093(b-1), Education Code, is amended |
|
to read as follows: |
|
(b-1) If the guaranteed level of state and local funds per |
|
weighted student per cent of tax effort under Section 42.302(a-1) |
|
[42.302(a-1)(1)] for which state funds are appropriated for a |
|
school year is an amount at least equal to the amount of revenue per |
|
weighted student per cent of tax effort available to the Austin |
|
Independent School District, as determined by the commissioner in |
|
cooperation with the Legislative Budget Board, the commissioner, in |
|
computing the amounts described by Subsections (a)(1) and (2) and |
|
determining the cost of an attendance credit, shall exclude |
|
maintenance and operations tax revenue resulting from the first six |
|
cents by which a district's maintenance and operations tax rate |
|
exceeds the rate equal to the product of the state compression |
|
percentage, as determined under Section 42.2516, multiplied by the |
|
maintenance and operations tax rate adopted by the district for the |
|
2005 tax year. |
|
SECTION 3. Section 42.2522(e), Education Code, is amended |
|
to read as follows: |
|
(e) The commissioner shall notify school districts as soon |
|
as practicable as to the availability of funds under this section. |
|
[For purposes of computing a rollback tax rate under Section 26.08,
|
|
Tax Code, a district shall adjust the district's tax rate limit to
|
|
reflect assistance received under this section.] |
|
SECTION 4. Sections 42.302(a-1) and (a-2), Education Code, |
|
are amended to read as follows: |
|
(a-1) In this section, "wealth per student" has the meaning |
|
assigned by Section 41.001. For purposes of Subsection (a), the |
|
dollar amount guaranteed level of state and local funds per |
|
weighted student per cent of tax effort ("GL") for a school district |
|
is[:
|
|
[(1)] the greater of the amount of district tax |
|
revenue per weighted student per cent of tax effort that would be |
|
available to the Austin Independent School District, as determined |
|
by the commissioner in cooperation with the Legislative Budget |
|
Board, if the reduction of the limitation on tax increases as |
|
provided by Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not |
|
apply, or the amount of district tax revenue per weighted student |
|
per cent of tax effort used for purposes of this subdivision in the |
|
preceding school year[, for the first six cents by which the
|
|
district's maintenance and operations tax rate exceeds the rate
|
|
equal to the product of the state compression percentage, as
|
|
determined under Section 42.2516, multiplied by the maintenance and
|
|
operations tax rate adopted by the district for the 2005 tax year;
|
|
and
|
|
[(2)
$31.95, for the district's maintenance and
|
|
operations tax effort that exceeds the amount of tax effort
|
|
described by Subdivision (1)]. |
|
(a-2) The limitation on district enrichment tax rate |
|
("DTR") under Section 42.303 does not apply to the first six cents |
|
by which the district's maintenance and operations tax rate exceeds |
|
the rate equal to the product of the state compression percentage, |
|
as determined under Section 42.2516, multiplied by the maintenance |
|
and operations tax rate adopted by the district for the 2005 tax |
|
year [effort described by Subsection (a-1)(1)]. |
|
SECTION 5. Sections 44.004(c) and (i), Education Code, are |
|
amended to read as follows: |
|
(c) The notice of public meeting to discuss and adopt the |
|
budget and the proposed tax rate may not be smaller than one-quarter |
|
page of a standard-size or a tabloid-size newspaper, and the |
|
headline on the notice must be in 18-point or larger type. Subject |
|
to Subsection (d), the notice must: |
|
(1) contain a statement in the following form: |
|
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE |
|
"The (name of school district) will hold a public meeting at |
|
(time, date, year) in (name of room, building, physical location, |
|
city, state). The purpose of this meeting is to discuss the school |
|
district's budget that will determine the tax rate that will be |
|
adopted. Public participation in the discussion is invited." The |
|
statement of the purpose of the meeting must be in bold type. In |
|
reduced type, the notice must state: "The tax rate that is |
|
ultimately adopted at this meeting or at a separate meeting at a |
|
later date may not exceed the proposed rate shown below unless the |
|
district publishes a revised notice containing the same information |
|
and comparisons set out below and holds another public meeting to |
|
discuss the revised notice."; |
|
(2) contain a section entitled "Comparison of Proposed |
|
Budget with Last Year's Budget," which must show the difference, |
|
expressed as a percent increase or decrease, as applicable, in the |
|
amounts budgeted for the preceding fiscal year and the amount |
|
budgeted for the fiscal year that begins in the current tax year for |
|
each of the following: |
|
(A) maintenance and operations; |
|
(B) debt service; and |
|
(C) total expenditures; |
|
(3) contain a section entitled "Total Appraised Value |
|
and Total Taxable Value," which must show the total appraised value |
|
and the total taxable value of all property and the total appraised |
|
value and the total taxable value of new property taxable by the |
|
district in the preceding tax year and the current tax year as |
|
calculated under Section 26.04, Tax Code; |
|
(4) contain a statement of the total amount of the |
|
outstanding and unpaid bonded indebtedness of the school district; |
|
(5) contain a section entitled "Comparison of Proposed |
|
Rates with Last Year's Rates," which must: |
|
(A) show in rows the tax rates described by |
|
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of |
|
property, for columns entitled "Maintenance & Operations," |
|
"Interest & Sinking Fund," and "Total," which is the sum of |
|
"Maintenance & Operations" and "Interest & Sinking Fund": |
|
(i) the school district's "Last Year's |
|
Rate"; |
|
(ii) the "Rate to Maintain Same Level of |
|
Maintenance & Operations Revenue & Pay Debt Service," which: |
|
(a) in the case of "Maintenance & |
|
Operations," is the tax rate that, when applied to the current |
|
taxable value for the district, as certified by the chief appraiser |
|
under Section 26.01, Tax Code, and as adjusted to reflect changes |
|
made by the chief appraiser as of the time the notice is prepared, |
|
would impose taxes in an amount that, when added to state funds to |
|
be distributed to the district under Chapter 42, would provide the |
|
same amount of maintenance and operations taxes and state funds |
|
distributed under Chapter 42 per student in average daily |
|
attendance for the applicable school year that was available to the |
|
district in the preceding school year; and |
|
(b) in the case of "Interest & Sinking |
|
Fund," is the tax rate that, when applied to the current taxable |
|
value for the district, as certified by the chief appraiser under |
|
Section 26.01, Tax Code, and as adjusted to reflect changes made by |
|
the chief appraiser as of the time the notice is prepared, and when |
|
multiplied by the district's anticipated collection rate, would |
|
impose taxes in an amount that, when added to state funds to be |
|
distributed to the district under Chapter 46 and any excess taxes |
|
collected to service the district's debt during the preceding tax |
|
year but not used for that purpose during that year, would provide |
|
the amount required to service the district's debt; and |
|
(iii) the "Proposed Rate"; |
|
(B) contain fourth and fifth columns aligned with |
|
the columns required by Paragraph (A) that show, for each row |
|
required by Paragraph (A): |
|
(i) the "Local Revenue per Student," which |
|
is computed by multiplying the district's total taxable value of |
|
property, as certified by the chief appraiser for the applicable |
|
school year under Section 26.01, Tax Code, and as adjusted to |
|
reflect changes made by the chief appraiser as of the time the |
|
notice is prepared, by the total tax rate, and dividing the product |
|
by the number of students in average daily attendance in the |
|
district for the applicable school year; and |
|
(ii) the "State Revenue per Student," which |
|
is computed by determining the amount of state aid received or to be |
|
received by the district under Chapters 42, 43, and 46 and dividing |
|
that amount by the number of students in average daily attendance in |
|
the district for the applicable school year; and |
|
(C) contain an asterisk after each calculation |
|
for "Interest & Sinking Fund" and a footnote to the section that, in |
|
reduced type, states "The Interest & Sinking Fund tax revenue is |
|
used to pay for bonded indebtedness on construction, equipment, or |
|
both. The bonds, and the tax rate necessary to pay those bonds, |
|
were approved by the voters of this district."; |
|
(6) contain a section entitled "Comparison of Proposed |
|
Levy with Last Year's Levy on Average Residence," which must: |
|
(A) show in rows the information described by |
|
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns |
|
entitled "Last Year" and "This Year": |
|
(i) "Average Market Value of Residences," |
|
determined using the same group of residences for each year; |
|
(ii) "Average Taxable Value of Residences," |
|
determined after taking into account the limitation on the |
|
appraised value of residences under Section 23.23, Tax Code, and |
|
after subtracting all homestead exemptions applicable in each year, |
|
other than exemptions available only to disabled persons or persons |
|
65 years of age or older or their surviving spouses, and using the |
|
same group of residences for each year; |
|
(iii) "Last Year's Rate Versus Proposed |
|
Rate per $100 Value"; and |
|
(iv) "Taxes Due on Average Residence," |
|
determined using the same group of residences for each year; and |
|
(B) contain the following information: "Increase |
|
(Decrease) in Taxes" expressed in dollars and cents, which is |
|
computed by subtracting the "Taxes Due on Average Residence" for |
|
the preceding tax year from the "Taxes Due on Average Residence" for |
|
the current tax year; |
|
(7) contain the following statement in bold print: |
|
"Under state law, the dollar amount of school taxes imposed on the |
|
residence of a person 65 years of age or older or of the surviving |
|
spouse of such a person, if the surviving spouse was 55 years of age |
|
or older when the person died, may not be increased above the amount |
|
paid in the first year after the person turned 65, regardless of |
|
changes in tax rate or property value."; |
|
(8) contain the following statement in bold print: |
|
"Notice of Maximum Maintenance Tax [Rollback] Rate: The highest |
|
maintenance tax rate the district can adopt before requiring voter |
|
approval at an election is (the maximum maintenance tax rate the |
|
district may adopt before requiring voter approval at an election |
|
under Section 45.003 [school district rollback rate determined
|
|
under Section 26.08, Tax Code]). [This election will be
|
|
automatically held if the district adopts a rate in excess of the
|
|
rollback rate of (the school district rollback rate).]"; and |
|
(9) contain a section entitled "Fund Balances," which |
|
must include the estimated amount of interest and sinking fund |
|
balances and the estimated amount of maintenance and operation or |
|
general fund balances remaining at the end of the current fiscal |
|
year that are not encumbered with or by corresponding debt |
|
obligation, less estimated funds necessary for the operation of the |
|
district before the receipt of the first payment under Chapter 42 in |
|
the succeeding school year. |
|
(i) A school district that uses a certified estimate, as |
|
authorized by Subsection (h), may adopt a budget at the public |
|
meeting designated in the notice prepared using the estimate, but |
|
the district may not adopt a tax rate before the district receives |
|
the certified appraisal roll for the district required by Section |
|
26.01(a), Tax Code. After receipt of the certified appraisal roll, |
|
the district must publish a revised notice and hold another public |
|
meeting before the district may adopt a tax rate that exceeds[:
|
|
[(1)] the rate proposed in the notice prepared using |
|
the estimate[; or
|
|
[(2)
the district's rollback rate determined under
|
|
Section 26.08, Tax Code, using the certified appraisal roll]. |
|
SECTION 6. Section 45.003, Education Code, is amended by |
|
adding Subsection (g) to read as follows: |
|
(g) Notwithstanding any other law, a district may not adopt |
|
a maintenance tax rate for the current tax year that exceeds the sum |
|
of: |
|
(1) the district's maintenance tax rate for the |
|
preceding tax year; and |
|
(2) the rate of four cents per $100 of taxable value in |
|
the district. |
|
SECTION 7. Section 45.261(e), Education Code, is amended to |
|
read as follows: |
|
(e) Any part of a school district's tax rate attributable to |
|
producing revenue for purposes of Subsection (c)(1) is considered |
|
part of the district's[:
|
|
[(1)
current debt rate for purposes of computing a
|
|
rollback tax rate under Section 26.08, Tax Code; and
|
|
[(2)] interest and sinking fund tax rate. |
|
SECTION 8. Section 3.005(a), Election Code, is amended to |
|
read as follows: |
|
(a) Except as provided by Subsection [Subsections] (c) [and
|
|
(d)], an election ordered by an authority of a political |
|
subdivision shall be ordered not later than the 62nd day before |
|
election day. |
|
SECTION 9. Section 4.008(a), Election Code, is amended to |
|
read as follows: |
|
(a) The [Except as provided by Subsection (b), the] |
|
governing body of a political subdivision, other than a county, |
|
that orders an election shall deliver notice of the election to the |
|
county clerk and voter registrar of each county in which the |
|
political subdivision is located not later than the 60th day before |
|
election day. |
|
SECTION 10. Section 26.05(g), Tax Code, is amended to read |
|
as follows: |
|
(g) Notwithstanding Subsection (a), the governing body of a |
|
school district that elects to adopt a tax rate before the adoption |
|
of a budget for the fiscal year that begins in the current tax year |
|
may adopt a tax rate for the current tax year before receipt of the |
|
certified appraisal roll for the school district if the chief |
|
appraiser of the appraisal district in which the school district |
|
participates has certified to the assessor for the school district |
|
an estimate of the taxable value of property in the school district |
|
as provided by Section 26.01(e). If a school district adopts a tax |
|
rate under this subsection, the effective tax rate [and the
|
|
rollback tax rate] of the district shall be calculated based on the |
|
certified estimate of taxable value. |
|
SECTION 11. (a) Sections 3.005(d) and 4.008(b), Election |
|
Code, are repealed. |
|
(b) Section 26.08, Tax Code, is repealed. |
|
SECTION 12. (a) The changes in law made by Sections 3, 5, 6, |
|
7, 8, 9, 10, and 11 of this Act apply to the ad valorem tax rate of a |
|
school district beginning with the 2011 tax year, except as |
|
provided by Subsection (b) of this section. |
|
(b) If the governing body of a school district adopted an ad |
|
valorem tax rate for the school district for the 2011 tax year |
|
before the effective date of Sections 3, 5, 6, 7, 8, 9, 10, and 11 of |
|
this Act, the changes in law made by Sections 3, 5, 6, 7, 8, 9, 10, |
|
and 11 of this Act apply to the ad valorem tax rate of that school |
|
district beginning with the 2012 tax year, and the law in effect |
|
when the tax rate was adopted applies to the 2011 tax year with |
|
respect to that school district. |
|
SECTION 13. (a) Except as provided by Subsection (b) of |
|
this section: |
|
(1) this Act takes effect immediately if it receives a |
|
vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution; and |
|
(2) if this Act does not receive the vote necessary for |
|
immediate effect, this Act takes effect September 1, 2011. |
|
(b) Sections 1, 2, and 4 of this Act take effect September 1, |
|
2011. |