By: Dunnam H.B. No. 2499
A BILL TO BE ENTITLED
AN ACT
relating to the appropriation of money from the property tax relief
fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 403.109, Government Code, is amended to
read as follows:
Sec. 403.109. PROPERTY TAX RELIEF FUND. (a) The property
tax relief fund is a special fund in the state treasury outside the
general revenue fund. The fund is exempt from the application of
Sections 403.095 and 404.071. Interest and income from the deposit
and investment of money in the fund must be allocated monthly to the
fund.
(b) Until the state fiscal year beginning after the first
tax year in which the residence homestead exemption is increased to
$45,000 or the average school district maintenance and operations
tax rate is not more than $1.33 [$1.00] per $100 of taxable value,
money in the fund may be appropriated only for covering the cost of
increasing the residence homestead exemption or a purpose that will
result in a reduction of school district maintenance and operations
tax rates to rates that are less than the rates in effect for the
2005 tax year.
(c) Beginning in the state fiscal year that begins after the
first tax year in which the residence homestead exemption is
increased to $45,000 or the average school district maintenance and
operations tax rate is not more than $1.33 [$1.00] per $100 of
taxable value, any money remaining in the fund after a sufficient
amount of money is appropriated in that state fiscal year to
maintain the cost of increasing the residence homestead exemption
or to maintain an average school district maintenance and
operations tax rate of $1.33 [$1.00] per $100 of taxable value may
be appropriated only as follows:
(1) two-thirds of the money appropriated from the fund
may be appropriated only for a purpose that will result in a further
increase in the residence homestead exemption or reduction of the
average school district maintenance and operations tax rate; and
(2) one-third of the money appropriated from the fund
may be appropriated only for the purpose of increasing the level of
equalization of school district enrichment tax effort to the extent
that limits reliance by school districts on local property tax
effort and decreases the enrichment tax rates of districts.
(d) To the extent to which maintenance and operations tax
rates are reduced using money appropriated from the fund,
reductions must be carried out so as not to increase disparity in
revenue yield between districts of varying property wealth per
weighted student.
SECTION 2. This Act takes effect September 1, 2009.