Texas Senate Bill SB1385

Texas 2009 - 81st Regular

Caption

Relating to the calculation of the rollback tax rate of a school district.

Impact

The changes proposed by SB1385 significantly impact school district funding, as the rollback tax rate plays a critical role in determining available funds and how much revenue a district can raise through property taxes. By altering the calculation method, this bill could potentially allow school districts to have a more favorable tax rate in future years, thereby enhancing their financial sustainability. This bill reflects a proactive approach to support education funding while considering local economic conditions, minimizing drastic changes that could result from fluctuating tax rates.

Summary

SB1385 is a legislative bill introduced with the purpose of adjusting the method by which the rollback tax rate is calculated for school districts in Texas. The bill amends Section 26.08 of the Tax Code, introducing a provision that allows if a district adopted a maintenance and operations tax rate lower than its effective rate in the preceding year, the current year's rollback tax rate will be calculated as if that district had adopted the effective rate. This aims to ensure that school districts do not face penalties in future tax calculations due to previous tax rate adjustments that may have been made to exert fiscal prudence while maintaining operational effectiveness.

Contention

While the bill may streamline tax calculations and potentially provide benefits to school districts, there are likely points of contention regarding how these changes may affect state-level revenue or how districts which previously required high taxes might have to adjust operationally. Critics may argue that such adjustments could undermine the intended fiscal discipline in tax levies, leading to long-term sustainability concerns for the state education budget. Additionally, potential disparities between affluent and less affluent districts could arise, affecting how resources are allocated among school districts across Texas.