81R10286 KKA-D
By: Paxton H.B. No. 2563
A BILL TO BE ENTITLED
AN ACT
relating to determination of and notification regarding the state
compression percentage under the public school finance system and
the elimination of property taxes for school district maintenance
and operations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.2516, Education Code, is amended by
amending Subsections (a) and (a-1) and adding Subsection (a-2) to
read as follows:
(a) In this section, "state compression percentage" means
the percentage, as determined by the commissioner in consultation
with the Legislative Budget Board, of a school district's adopted
maintenance and operations tax rate for the 2005 tax year that
serves as the basis for state funding for tax rate reduction under
this section. The commissioner, in consultation with the
Legislative Budget Board, shall determine the state compression
percentage for each school year based on the percentage by which a
district is able to reduce the district's maintenance and
operations tax rate for that year, as compared to the district's
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for distribution under this
section for that year from the property tax relief fund established
under Section 403.109, Government Code, or from another funding
source available for school district property tax relief.
(a-1) For the state fiscal year ending August 31, 2009, the
state compression percentage is 66.67 percent. For each subsequent
state fiscal year, the state compression percentage is the lesser
of:
(1) the percentage determined in accordance with
Subsection (a); or
(2) the state compression percentage for the preceding
state fiscal year.
(a-2) Not later than March 1 of each year, the commissioner
shall:
(1) inform school districts of the state compression
percentage for the following school year; and
(2) post the state compression percentage for the
following school year on the agency's website. [Subsection (a)
applies beginning with the state fiscal year ending August 31,
2009. For the state fiscal year ending August 31, 2007, the state
compression percentage is 88.67 percent. For the state fiscal year
ending August 31, 2008, the state compression percentage is 66.67
percent. This subsection expires September 1, 2009.]
SECTION 2. Section 45.002, Education Code, is amended to
read as follows:
Sec. 45.002. MAINTENANCE TAXES. (a) The governing board of
an independent school district, including the city council or
commission that has jurisdiction over a municipally controlled
independent school district, the governing board of a rural high
school district, and the commissioners court of a county, on behalf
of each common school district under its jurisdiction, may levy,
assess, and collect annual ad valorem taxes for the further
maintenance of public schools in the district, subject to Section
45.003.
(b) Notwithstanding Section 45.003(d) or (f) or Section
26.08, Tax Code, an entity listed in Subsection (a) may, during the
five-year period beginning with the year in which the state
compression percentage, as specified under Section 42.2516, is
zero, impose an annual ad valorem tax for the maintenance of public
schools at a rate not to exceed $0.17. After that period,
notwithstanding Subsection (a), Section 45.003(d) or (f), or any
other provision of this code, annual ad valorem taxes for the
maintenance of public schools may not be levied, assessed, or
collected by an entity listed in Subsection (a). This subsection
does not affect the authority of an entity listed in Subsection (a)
to levy, assess, and collect annual ad valorem taxes authorized
under Section 45.001 to pay the principal and interest on bonds.
SECTION 3. 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. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.