Texas 2009 - 81st Regular

Texas House Bill HB2645 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R7616 SMH-D
2	2	By: Kent H.B. No. 2645
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain limitations on the ad valorem tax rate of a
8	8	school district.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 44.004(c) and (i), Education Code, are
11	11	amended to read as follows:
12	12	(c) The notice of public meeting to discuss and adopt the
13	13	budget and the proposed tax rate may not be smaller than one-quarter
14	14	page of a standard-size or a tabloid-size newspaper, and the
15	15	headline on the notice must be in 18-point or larger type. Subject
16	16	to Subsection (d), the notice must:
17	17	(1) contain a statement in the following form:
18	18	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
19	19	"The (name of school district) will hold a public meeting at
20	20	(time, date, year) in (name of room, building, physical location,
21	21	city, state). The purpose of this meeting is to discuss the school
22	22	district's budget that will determine the tax rate that will be
23	23	adopted. Public participation in the discussion is invited." The
24	24	statement of the purpose of the meeting must be in bold type. In
25	25	reduced type, the notice must state: "The tax rate that is
26	26	ultimately adopted at this meeting or at a separate meeting at a
27	27	later date may not exceed the proposed rate shown below unless the
28	28	district publishes a revised notice containing the same information
29	29	and comparisons set out below and holds another public meeting to
30	30	discuss the revised notice.";
31	31	(2) contain a section entitled "Comparison of Proposed
32	32	Budget with Last Year's Budget," which must show the difference,
33	33	expressed as a percent increase or decrease, as applicable, in the
34	34	amounts budgeted for the preceding fiscal year and the amount
35	35	budgeted for the fiscal year that begins in the current tax year for
36	36	each of the following:
37	37	(A) maintenance and operations;
38	38	(B) debt service; and
39	39	(C) total expenditures;
40	40	(3) contain a section entitled "Total Appraised Value
41	41	and Total Taxable Value," which must show the total appraised value
42	42	and the total taxable value of all property and the total appraised
43	43	value and the total taxable value of new property taxable by the
44	44	district in the preceding tax year and the current tax year as
45	45	calculated under Section 26.04, Tax Code;
46	46	(4) contain a statement of the total amount of the
47	47	outstanding and unpaid bonded indebtedness of the school district;
48	48	(5) contain a section entitled "Comparison of Proposed
49	49	Rates with Last Year's Rates," which must:
50	50	(A) show in rows the tax rates described by
51	51	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
52	52	property, for columns entitled "Maintenance & Operations,"
53	53	"Interest & Sinking Fund," and "Total," which is the sum of
54	54	"Maintenance & Operations" and "Interest & Sinking Fund":
55	55	(i) the school district's "Last Year's
56	56	Rate";
57	57	(ii) the "Rate to Maintain Same Level of
58	58	Maintenance & Operations Revenue & Pay Debt Service," which:
59	59	(a) in the case of "Maintenance &
60	60	Operations," is the tax rate that, when applied to the current
61	61	taxable value for the district, as certified by the chief appraiser
62	62	under Section 26.01, Tax Code, and as adjusted to reflect changes
63	63	made by the chief appraiser as of the time the notice is prepared,
64	64	would impose taxes in an amount that, when added to state funds to
65	65	be distributed to the district under Chapter 42, would provide the
66	66	same amount of maintenance and operations taxes and state funds
67	67	distributed under Chapter 42 per student in average daily
68	68	attendance for the applicable school year that was available to the
69	69	district in the preceding school year; and
70	70	(b) in the case of "Interest & Sinking
71	71	Fund," is the tax rate that, when applied to the current taxable
72	72	value for the district, as certified by the chief appraiser under
73	73	Section 26.01, Tax Code, and as adjusted to reflect changes made by
74	74	the chief appraiser as of the time the notice is prepared, and when
75	75	multiplied by the district's anticipated collection rate, would
76	76	impose taxes in an amount that, when added to state funds to be
77	77	distributed to the district under Chapter 46 and any excess taxes
78	78	collected to service the district's debt during the preceding tax
79	79	year but not used for that purpose during that year, would provide
80	80	the amount required to service the district's debt; and
81	81	(iii) the "Proposed Rate";
82	82	(B) contain fourth and fifth columns aligned with
83	83	the columns required by Paragraph (A) that show, for each row
84	84	required by Paragraph (A):
85	85	(i) the "Local Revenue per Student," which
86	86	is computed by multiplying the district's total taxable value of
87	87	property, as certified by the chief appraiser for the applicable
88	88	school year under Section 26.01, Tax Code, and as adjusted to
89	89	reflect changes made by the chief appraiser as of the time the
90	90	notice is prepared, by the total tax rate, and dividing the product
91	91	by the number of students in average daily attendance in the
92	92	district for the applicable school year; and
93	93	(ii) the "State Revenue per Student," which
94	94	is computed by determining the amount of state aid received or to be
95	95	received by the district under Chapters 42, 43, and 46 and dividing
96	96	that amount by the number of students in average daily attendance in
97	97	the district for the applicable school year; and
98	98	(C) contain an asterisk after each calculation
99	99	for "Interest & Sinking Fund" and a footnote to the section that, in
100	100	reduced type, states "The Interest & Sinking Fund tax revenue is
101	101	used to pay for bonded indebtedness on construction, equipment, or
102	102	both. The bonds, and the tax rate necessary to pay those bonds,
103	103	were approved by the voters of this district.";
104	104	(6) contain a section entitled "Comparison of Proposed
105	105	Levy with Last Year's Levy on Average Residence," which must:
106	106	(A) show in rows the information described by
107	107	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
108	108	entitled "Last Year" and "This Year":
109	109	(i) "Average Market Value of Residences,"
110	110	determined using the same group of residences for each year;
111	111	(ii) "Average Taxable Value of Residences,"
112	112	determined after taking into account the limitation on the
113	113	appraised value of residences under Section 23.23, Tax Code, and
114	114	after subtracting all homestead exemptions applicable in each year,
115	115	other than exemptions available only to disabled persons or persons
116	116	65 years of age or older or their surviving spouses, and using the
117	117	same group of residences for each year;
118	118	(iii) "Last Year's Rate Versus Proposed
119	119	Rate per $100 Value"; and
120	120	(iv) "Taxes Due on Average Residence,"
121	121	determined using the same group of residences for each year; and
122	122	(B) contain the following
123	123	information: "Increase (Decrease) in Taxes" expressed in dollars
124	124	and cents, which is computed by subtracting the "Taxes Due on
125	125	Average Residence" for the preceding tax year from the "Taxes Due on
126	126	Average Residence" for the current tax year;
127	127	(7) contain the following statement in bold
128	128	print: "Under state law, the dollar amount of school taxes imposed
129	129	on the residence of a person 65 years of age or older or of the
130	130	surviving spouse of such a person, if the surviving spouse was 55
131	131	years of age or older when the person died, may not be increased
132	132	above the amount paid in the first year after the person turned 65,
133	133	regardless of changes in tax rate or property value.";
134	134	(8) contain the following statement in bold
135	135	print: "Notice of Maximum Maintenance Tax [Rollback] Rate: The
136	136	highest maintenance tax rate the district can adopt before
137	137	requiring voter approval at an election is (the maximum maintenance
138	138	tax rate the district may adopt before requiring voter approval at
139	139	an election under Section 45.003 [school district rollback rate
140	140	determined under Section 26.08, Tax Code]). [This election will be
141	141	automatically held if the district adopts a rate in excess of the
142	142	rollback rate of (the school district rollback rate).]"; and
143	143	(9) contain a section entitled "Fund Balances," which
144	144	must include the estimated amount of interest and sinking fund
145	145	balances and the estimated amount of maintenance and operation or
146	146	general fund balances remaining at the end of the current fiscal
147	147	year that are not encumbered with or by corresponding debt
148	148	obligation, less estimated funds necessary for the operation of the
149	149	district before the receipt of the first payment under Chapter 42 in
150	150	the succeeding school year.
151	151	(i) A school district that uses a certified estimate, as
152	152	authorized by Subsection (h), may adopt a budget at the public
153	153	meeting designated in the notice prepared using the estimate, but
154	154	the district may not adopt a tax rate before the district receives
155	155	the certified appraisal roll for the district required by Section
156	156	26.01(a), Tax Code. After receipt of the certified appraisal roll,
157	157	the district must publish a revised notice and hold another public
158	158	meeting before the district may adopt a tax rate that exceeds[:
159	159	[(1)] the rate proposed in the notice prepared using
160	160	the estimate[; or
161	161	[(2) the district's rollback rate determined under
162	162	Section 26.08, Tax Code, using the certified appraisal roll].
163	163	SECTION 2. Section 42.2522(e), Education Code, is amended
164	164	to read as follows:
165	165	(e) The commissioner shall notify school districts as soon
166	166	as practicable as to the availability of funds under this section.
167	167	[For purposes of computing a rollback tax rate under Section 26.08,
168	168	Tax Code, a district shall adjust the district's tax rate limit to
169	169	reflect assistance received under this section.]
170	170	SECTION 3. Section 45.003, Education Code, is amended by
171	171	adding Subsection (g) to read as follows:
172	172	(g) Notwithstanding any other law:
173	173	(1) a district that adopted a maintenance tax rate for
174	174	the preceding tax year of at least $1.04 per $100 of taxable value
175	175	in the district may not adopt a maintenance tax rate for the current
176	176	tax year that exceeds the sum of:
177	177	(A) the district's maintenance tax rate for the
178	178	preceding tax year; and
179	179	(B) the rate of four cents per $100 of taxable
180	180	value in the district; and
181	181	(2) a district that adopted a maintenance tax rate for
182	182	the preceding tax year of less than $1.04 per $100 of taxable value
183	183	in the district may not adopt a maintenance tax rate for the current
184	184	tax year that exceeds the greater of:
185	185	(A) the rate described by Subdivision (1); or
186	186	(B) the rate of $1.04 per $100 of taxable value in
187	187	the district.
188	188	SECTION 4. Sections 26.08 and 313.029, Tax Code, are
189	189	repealed.
190	190	SECTION 5. This Act applies only to ad valorem taxes imposed
191	191	for a tax year beginning on or after the effective date of this Act.
192	192	SECTION 6. This Act takes effect January 1, 2010.