| 1 | 1 | | 81R10286 KKA-D |
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| 2 | 2 | | By: Paxton H.B. No. 2563 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to determination of and notification regarding the state |
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| 8 | 8 | | compression percentage under the public school finance system and |
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| 9 | 9 | | the elimination of property taxes for school district maintenance |
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| 10 | 10 | | and operations. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 42.2516, Education Code, is amended by |
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| 13 | 13 | | amending Subsections (a) and (a-1) and adding Subsection (a-2) to |
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| 14 | 14 | | read as follows: |
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| 15 | 15 | | (a) In this section, "state compression percentage" means |
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| 16 | 16 | | the percentage, as determined by the commissioner in consultation |
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| 17 | 17 | | with the Legislative Budget Board, of a school district's adopted |
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| 18 | 18 | | maintenance and operations tax rate for the 2005 tax year that |
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| 19 | 19 | | serves as the basis for state funding for tax rate reduction under |
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| 20 | 20 | | this section. The commissioner, in consultation with the |
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| 21 | 21 | | Legislative Budget Board, shall determine the state compression |
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| 22 | 22 | | percentage for each school year based on the percentage by which a |
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| 23 | 23 | | district is able to reduce the district's maintenance and |
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| 24 | 24 | | operations tax rate for that year, as compared to the district's |
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| 25 | 25 | | adopted maintenance and operations tax rate for the 2005 tax year, |
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| 26 | 26 | | as a result of state funds appropriated for distribution under this |
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| 27 | 27 | | section for that year from the property tax relief fund established |
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| 28 | 28 | | under Section 403.109, Government Code, or from another funding |
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| 29 | 29 | | source available for school district property tax relief. |
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| 30 | 30 | | (a-1) For the state fiscal year ending August 31, 2009, the |
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| 31 | 31 | | state compression percentage is 66.67 percent. For each subsequent |
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| 32 | 32 | | state fiscal year, the state compression percentage is the lesser |
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| 33 | 33 | | of: |
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| 34 | 34 | | (1) the percentage determined in accordance with |
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| 35 | 35 | | Subsection (a); or |
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| 36 | 36 | | (2) the state compression percentage for the preceding |
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| 37 | 37 | | state fiscal year. |
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| 38 | 38 | | (a-2) Not later than March 1 of each year, the commissioner |
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| 39 | 39 | | shall: |
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| 40 | 40 | | (1) inform school districts of the state compression |
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| 41 | 41 | | percentage for the following school year; and |
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| 42 | 42 | | (2) post the state compression percentage for the |
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| 43 | 43 | | following school year on the agency's website. [Subsection (a) |
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| 44 | 44 | | applies beginning with the state fiscal year ending August 31, |
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| 45 | 45 | | 2009. For the state fiscal year ending August 31, 2007, the state |
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| 46 | 46 | | compression percentage is 88.67 percent. For the state fiscal year |
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| 47 | 47 | | ending August 31, 2008, the state compression percentage is 66.67 |
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| 48 | 48 | | percent. This subsection expires September 1, 2009.] |
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| 49 | 49 | | SECTION 2. Section 45.002, Education Code, is amended to |
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| 50 | 50 | | read as follows: |
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| 51 | 51 | | Sec. 45.002. MAINTENANCE TAXES. (a) The governing board of |
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| 52 | 52 | | an independent school district, including the city council or |
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| 53 | 53 | | commission that has jurisdiction over a municipally controlled |
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| 54 | 54 | | independent school district, the governing board of a rural high |
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| 55 | 55 | | school district, and the commissioners court of a county, on behalf |
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| 56 | 56 | | of each common school district under its jurisdiction, may levy, |
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| 57 | 57 | | assess, and collect annual ad valorem taxes for the further |
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| 58 | 58 | | maintenance of public schools in the district, subject to Section |
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| 59 | 59 | | 45.003. |
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| 60 | 60 | | (b) Notwithstanding Section 45.003(d) or (f) or Section |
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| 61 | 61 | | 26.08, Tax Code, an entity listed in Subsection (a) may, during the |
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| 62 | 62 | | five-year period beginning with the year in which the state |
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| 63 | 63 | | compression percentage, as specified under Section 42.2516, is |
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| 64 | 64 | | zero, impose an annual ad valorem tax for the maintenance of public |
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| 65 | 65 | | schools at a rate not to exceed $0.17. After that period, |
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| 66 | 66 | | notwithstanding Subsection (a), Section 45.003(d) or (f), or any |
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| 67 | 67 | | other provision of this code, annual ad valorem taxes for the |
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| 68 | 68 | | maintenance of public schools may not be levied, assessed, or |
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| 69 | 69 | | collected by an entity listed in Subsection (a). This subsection |
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| 70 | 70 | | does not affect the authority of an entity listed in Subsection (a) |
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| 71 | 71 | | to levy, assess, and collect annual ad valorem taxes authorized |
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| 72 | 72 | | under Section 45.001 to pay the principal and interest on bonds. |
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| 73 | 73 | | SECTION 3. This Act takes effect immediately if it receives |
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| 74 | 74 | | a vote of two-thirds of all the members elected to each house, as |
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| 75 | 75 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 76 | 76 | | Act does not receive the vote necessary for immediate effect, this |
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| 77 | 77 | | Act takes effect September 1, 2009. |
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