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A BILL TO BE ENTITLED
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AN ACT
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relating to certain adjustments to the taxable value of property of |
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certain school districts and the reduction of Foundation School |
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Program funds received by certain school districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 41.002, Education Code, is amended by |
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adding Subsections (c) and (d) to read as follows: |
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(c) For purposes of this chapter, the commissioner shall |
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adjust, in accordance with Section 42.2529, the taxable values of a |
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school district that meets the criteria for adjustment under that |
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section. |
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(d) For purposes of this chapter, the commissioner shall |
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adjust, in accordance with Section 42.25291, the taxable values of |
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a school district that meets the criteria for adjustment under that |
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section. |
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SECTION 2. Subchapter A, Chapter 42, Education Code, is |
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amended by adding Section 42.012 to read as follows: |
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Sec. 42.012. REDUCTION IN FUNDING OF CERTAIN DISTRICTS. |
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(a) Each school year the commissioner shall determine the |
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percentage of the cost of the Foundation School Program funded by |
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amounts paid to the state by school districts as a result of |
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attendance credits purchased under Subchapter D, Chapter 41. |
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(b) Notwithstanding any other provision of this chapter, |
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the total amount to which a school district is entitled under this |
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chapter is reduced by the percentage determined under Subsection |
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(a) unless the school district imposes a maintenance and operations |
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tax at the greatest rate allowed under Section 45.003(d). |
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SECTION 3. Subchapter E, Chapter 42, Education Code, is |
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amended by adding Sections 42.2529, 42.25291, and 42.25292 to read |
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as follows: |
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Sec. 42.2529. ADJUSTMENT FOR DISTRICT ENTITLED TO CERTAIN |
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FEDERAL FUNDING. For purposes of Chapters 41 and 46 and this |
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chapter, the commissioner shall adjust the taxable value of |
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property of a district for a school year as necessary to ensure the |
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district's wealth per student does not exceed the equalized wealth |
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level provided by Section 41.002, if for that school year the |
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district: |
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(1) has a campus that receives federal funding under a |
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concentration grant under 20 U.S.C. Section 6334; and |
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(2) would otherwise have a wealth per student that |
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exceeds the equalized wealth level provided by Section 41.002. |
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Sec. 42.25291. ADJUSTMENT FOR DISTRICT WITH TAXABLE VALUE |
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OF PROPERTY INCREASED BY ASSOCIATED MINERAL RIGHTS. For purposes |
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of Chapters 41 and 46 and this chapter, the commissioner shall |
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adjust the taxable value of property of a district for a school year |
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as necessary to ensure the district's wealth per student does not |
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exceed the equalized wealth level provided by Section 41.002, if |
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for that school year the district: |
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(1) is identified by the select committee under |
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Section 42.25292 as having a taxable value of property that is |
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unlikely to produce the projected district tax revenue per weighted |
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student because of a high prevalence of mineral rights associated |
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with the taxable property; and |
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(2) would otherwise have a wealth per student that |
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exceeds the equalized wealth level provided by Section 41.002. |
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Sec. 42.25292. SELECT COMMITTEE TO DETERMINE TAXABLE VALUE |
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OF PROPERTY OF CERTAIN DISTRICTS. (a) Not later than October 1 of |
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each year, the speaker of the house of representatives and the |
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lieutenant governor shall appoint a select committee as follows: |
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(1) the speaker of the house of representatives shall |
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appoint five members of the house, at least three of whom must |
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reside within the boundaries of the geographic area encompassed by |
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State Board of Education districts 1, 3, and 15; and |
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(2) the lieutenant governor shall appoint five members |
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of the senate, at least three of whom must reside within the |
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boundaries of the geographic area encompassed by State Board of |
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Education districts 1, 3, and 15. |
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(b) For purposes of Section 42.25291, not later than June 1 |
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of each year, the select committee shall: |
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(1) in consultation with the comptroller and the |
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Legislative Budget Board, identify districts with a taxable value |
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of property that is unlikely to produce the projected district tax |
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revenue per weighted student because of a high prevalence of |
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mineral rights associated with the taxable property; and |
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(2) provide to the commissioner a list of those |
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districts identified by the committee under Subdivision (1). |
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SECTION 4. Section 42.302(a), Education Code, is amended to |
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read as follows: |
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(a) Each school district is guaranteed a specified amount |
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per weighted student in state and local funds for each cent of tax |
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effort over that required for the district's local fund assignment |
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up to the maximum level specified in this subchapter. The amount of |
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state support, subject only to the maximum amount under Section |
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42.303, is determined by the formula: |
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GYA = (GL X WADA X DTR X 100) - LR |
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where: |
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"GYA" is the guaranteed yield amount of state funds to be |
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allocated to the district; |
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"GL" is the dollar amount guaranteed level of state and local |
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funds per weighted student per cent of tax effort, which is an |
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amount described by Subsection (a-1) or a greater amount for any |
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year provided by appropriation; |
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"WADA" is the number of students in weighted average daily |
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attendance, which is calculated by dividing the sum of the school |
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district's allotments under Subchapters B and C, less any allotment |
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to the district for transportation, any allotment under Section |
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42.158 or 42.160, and 50 percent of the adjustment under Section |
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42.102, by the basic allotment for the applicable year; |
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"DTR" is the district enrichment tax rate of the school |
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district, which is determined by subtracting the amounts specified |
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by Subsection (b) from the total amount of maintenance and |
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operations taxes collected by the school district for the |
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applicable school year and dividing the difference by the quotient |
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of the district's taxable value of property as determined under |
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Subchapter M, Chapter 403, Government Code, or, if applicable, |
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under Section 42.2521, 42.2529, or 42.25291, divided by 100; and |
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"LR" is the local revenue, which is determined by multiplying |
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"DTR" by the quotient of the district's taxable value of property as |
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determined under Subchapter M, Chapter 403, Government Code, or, if |
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applicable, under Section 42.2521, 42.2529, or 42.25291, divided by |
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100. |
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SECTION 5. Section 46.003(a), Education Code, is amended to |
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read as follows: |
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(a) For each year, except as provided by Sections 46.005 and |
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46.006, a school district is guaranteed a specified amount per |
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student in state and local funds for each cent of tax effort, up to |
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the maximum rate under Subsection (b), to pay the principal of and |
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interest on eligible bonds issued to construct, acquire, renovate, |
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or improve an instructional facility. The amount of state support |
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is determined by the formula: |
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FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100)) |
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where: |
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"FYA" is the guaranteed facilities yield amount of state |
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funds allocated to the district for the year; |
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"FYL" is the dollar amount guaranteed level of state and |
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local funds per student per cent of tax effort, which is $35 or a |
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greater amount for any year provided by appropriation; |
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"ADA" is the greater of the number of students in average |
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daily attendance, as determined under Section 42.005, in the |
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district or 400; |
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"BTR" is the district's bond tax rate for the current year, |
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which is determined by dividing the amount budgeted by the district |
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for payment of eligible bonds by the quotient of the district's |
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taxable value of property as determined under Subchapter M, Chapter |
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403, Government Code, or, if applicable, Section 42.2521, 42.2529, |
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or 42.25291, divided by 100; and |
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"DPV" is the district's taxable value of property as |
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determined under Subchapter M, Chapter 403, Government Code, or, if |
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applicable, Section 42.2521, 42.2529, or 42.25291. |
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SECTION 6. Section 46.006(g), Education Code, is amended to |
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read as follows: |
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(g) In this section, "wealth per student" means a school |
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district's taxable value of property as determined under Subchapter |
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M, Chapter 403, Government Code, or, if applicable, Section |
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42.2521, 42.2529, or 42.25291, divided by the district's average |
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daily attendance as determined under Section 42.005. |
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SECTION 7. Section 46.032(a), Education Code, is amended to |
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read as follows: |
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(a) Each school district is guaranteed a specified amount |
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per student in state and local funds for each cent of tax effort to |
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pay the principal of and interest on eligible bonds. The amount of |
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state support, subject only to the maximum amount under Section |
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46.034, is determined by the formula: |
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EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100)) |
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where: |
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"EDA" is the amount of state funds to be allocated to the |
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district for assistance with existing debt; |
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"EDGL" is the dollar amount guaranteed level of state and |
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local funds per student per cent of tax effort, which is $35 or a |
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greater amount for any year provided by appropriation; |
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"ADA" is the number of students in average daily attendance, |
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as determined under Section 42.005, in the district; |
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"EDTR" is the existing debt tax rate of the district, which is |
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determined by dividing the amount budgeted by the district for |
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payment of eligible bonds by the quotient of the district's taxable |
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value of property as determined under Subchapter M, Chapter 403, |
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Government Code, or, if applicable, under Section 42.2521, 42.2529, |
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or 42.25291, divided by 100; and |
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"DPV" is the district's taxable value of property as |
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determined under Subchapter M, Chapter 403, Government Code, or, if |
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applicable, under Section 42.2521, 42.2529, or 42.25291. |
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SECTION 8. This Act takes effect September 1, 2017. |