Texas 2009 - 81st Regular

Texas Senate Bill SB2430 Compare Versions

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1	1	81R10895 SMH/KKA-D
2	2	By: Davis, Wendy S.B. No. 2430
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to public school finance and certain limitations on the ad
8	8	valorem tax rate of a school district.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 42.2522(e), Education Code, is amended
11	11	to read as follows:
12	12	(e) The commissioner shall notify school districts as soon
13	13	as practicable as to the availability of funds under this section.
14	14	[For purposes of computing a rollback tax rate under Section 26.08,
15	15	Tax Code, a district shall adjust the district's tax rate limit to
16	16	reflect assistance received under this section.]
17	17	SECTION 2. Section 42.302(a-1), Education Code, is amended
18	18	to read as follows:
19	19	(a-1) In this section, "wealth per student" has the meaning
20	20	assigned by Section 41.001. For purposes of Subsection (a), the
21	21	dollar amount guaranteed level of state and local funds per
22	22	weighted student per cent of tax effort ("GL") for a school district
23	23	is:
24	24	(1) the amount of district tax revenue per weighted
25	25	student per cent of tax effort available to a district at the 88th
26	26	percentile in wealth per student, as determined by the commissioner
27	27	in cooperation with the Legislative Budget Board, for the
28	28	district's maintenance and operations tax effort equal to or less
29	29	than the rate equal to the product of the state compression
30	30	percentage, as determined under Section 42.2516, multiplied by the
31	31	maintenance and operations tax rate adopted by the district for the
32	32	2005 tax year; and
33	33	(2) the greater of the amount of district tax revenue
34	34	per weighted student per cent of tax effort that would be available
35	35	to the Austin Independent School District, as determined by the
36	36	commissioner in cooperation with the Legislative Budget Board, if
37	37	the reduction of the limitation on tax increases as provided by
38	38	Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
39	39	amount of district tax revenue per weighted student per cent of tax
40	40	effort used for purposes of this subdivision in the preceding
41	41	school year, for the [first six cents by which the district's
42	42	maintenance and operations tax rate exceeds the rate equal to the
43	43	product of the state compression percentage, as determined under
44	44	Section 42.2516 and notwithstanding the limitation on district
45	45	enrichment tax rate ("DTR") under Section 42.303, multiplied by the
46	46	maintenance and operations tax rate adopted by the district for the
47	47	2005 tax year; and
48	48	[(3) $31.95, for the] district's maintenance and
49	49	operations tax effort that exceeds the amount of tax effort
50	50	described by Subdivision (1) [(2)].
51	51	SECTION 3. Sections 44.004(c) and (i), Education Code, are
52	52	amended to read as follows:
53	53	(c) The notice of public meeting to discuss and adopt the
54	54	budget and the proposed tax rate may not be smaller than one-quarter
55	55	page of a standard-size or a tabloid-size newspaper, and the
56	56	headline on the notice must be in 18-point or larger type. Subject
57	57	to Subsection (d), the notice must:
58	58	(1) contain a statement in the following form:
59	59	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
60	60	"The (name of school district) will hold a public meeting at
61	61	(time, date, year) in (name of room, building, physical location,
62	62	city, state). The purpose of this meeting is to discuss the school
63	63	district's budget that will determine the tax rate that will be
64	64	adopted. Public participation in the discussion is invited." The
65	65	statement of the purpose of the meeting must be in bold type. In
66	66	reduced type, the notice must state: "The tax rate that is
67	67	ultimately adopted at this meeting or at a separate meeting at a
68	68	later date may not exceed the proposed rate shown below unless the
69	69	district publishes a revised notice containing the same information
70	70	and comparisons set out below and holds another public meeting to
71	71	discuss the revised notice.";
72	72	(2) contain a section entitled "Comparison of Proposed
73	73	Budget with Last Year's Budget," which must show the difference,
74	74	expressed as a percent increase or decrease, as applicable, in the
75	75	amounts budgeted for the preceding fiscal year and the amount
76	76	budgeted for the fiscal year that begins in the current tax year for
77	77	each of the following:
78	78	(A) maintenance and operations;
79	79	(B) debt service; and
80	80	(C) total expenditures;
81	81	(3) contain a section entitled "Total Appraised Value
82	82	and Total Taxable Value," which must show the total appraised value
83	83	and the total taxable value of all property and the total appraised
84	84	value and the total taxable value of new property taxable by the
85	85	district in the preceding tax year and the current tax year as
86	86	calculated under Section 26.04, Tax Code;
87	87	(4) contain a statement of the total amount of the
88	88	outstanding and unpaid bonded indebtedness of the school district;
89	89	(5) contain a section entitled "Comparison of Proposed
90	90	Rates with Last Year's Rates," which must:
91	91	(A) show in rows the tax rates described by
92	92	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
93	93	property, for columns entitled "Maintenance & Operations,"
94	94	"Interest & Sinking Fund," and "Total," which is the sum of
95	95	"Maintenance & Operations" and "Interest & Sinking Fund":
96	96	(i) the school district's "Last Year's
97	97	Rate";
98	98	(ii) the "Rate to Maintain Same Level of
99	99	Maintenance & Operations Revenue & Pay Debt Service," which:
100	100	(a) in the case of "Maintenance &
101	101	Operations," is the tax rate that, when applied to the current
102	102	taxable value for the district, as certified by the chief appraiser
103	103	under Section 26.01, Tax Code, and as adjusted to reflect changes
104	104	made by the chief appraiser as of the time the notice is prepared,
105	105	would impose taxes in an amount that, when added to state funds to
106	106	be distributed to the district under Chapter 42, would provide the
107	107	same amount of maintenance and operations taxes and state funds
108	108	distributed under Chapter 42 per student in average daily
109	109	attendance for the applicable school year that was available to the
110	110	district in the preceding school year; and
111	111	(b) in the case of "Interest & Sinking
112	112	Fund," is the tax rate that, when applied to the current taxable
113	113	value for the district, as certified by the chief appraiser under
114	114	Section 26.01, Tax Code, and as adjusted to reflect changes made by
115	115	the chief appraiser as of the time the notice is prepared, and when
116	116	multiplied by the district's anticipated collection rate, would
117	117	impose taxes in an amount that, when added to state funds to be
118	118	distributed to the district under Chapter 46 and any excess taxes
119	119	collected to service the district's debt during the preceding tax
120	120	year but not used for that purpose during that year, would provide
121	121	the amount required to service the district's debt; and
122	122	(iii) the "Proposed Rate";
123	123	(B) contain fourth and fifth columns aligned with
124	124	the columns required by Paragraph (A) that show, for each row
125	125	required by Paragraph (A):
126	126	(i) the "Local Revenue per Student," which
127	127	is computed by multiplying the district's total taxable value of
128	128	property, as certified by the chief appraiser for the applicable
129	129	school year under Section 26.01, Tax Code, and as adjusted to
130	130	reflect changes made by the chief appraiser as of the time the
131	131	notice is prepared, by the total tax rate, and dividing the product
132	132	by the number of students in average daily attendance in the
133	133	district for the applicable school year; and
134	134	(ii) the "State Revenue per Student," which
135	135	is computed by determining the amount of state aid received or to be
136	136	received by the district under Chapters 42, 43, and 46 and dividing
137	137	that amount by the number of students in average daily attendance in
138	138	the district for the applicable school year; and
139	139	(C) contain an asterisk after each calculation
140	140	for "Interest & Sinking Fund" and a footnote to the section that, in
141	141	reduced type, states "The Interest & Sinking Fund tax revenue is
142	142	used to pay for bonded indebtedness on construction, equipment, or
143	143	both. The bonds, and the tax rate necessary to pay those bonds,
144	144	were approved by the voters of this district.";
145	145	(6) contain a section entitled "Comparison of Proposed
146	146	Levy with Last Year's Levy on Average Residence," which must:
147	147	(A) show in rows the information described by
148	148	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
149	149	entitled "Last Year" and "This Year":
150	150	(i) "Average Market Value of Residences,"
151	151	determined using the same group of residences for each year;
152	152	(ii) "Average Taxable Value of Residences,"
153	153	determined after taking into account the limitation on the
154	154	appraised value of residences under Section 23.23, Tax Code, and
155	155	after subtracting all homestead exemptions applicable in each year,
156	156	other than exemptions available only to disabled persons or persons
157	157	65 years of age or older or their surviving spouses, and using the
158	158	same group of residences for each year;
159	159	(iii) "Last Year's Rate Versus Proposed
160	160	Rate per $100 Value"; and
161	161	(iv) "Taxes Due on Average Residence,"
162	162	determined using the same group of residences for each year; and
163	163	(B) contain the following
164	164	information: "Increase (Decrease) in Taxes" expressed in dollars
165	165	and cents, which is computed by subtracting the "Taxes Due on
166	166	Average Residence" for the preceding tax year from the "Taxes Due on
167	167	Average Residence" for the current tax year;
168	168	(7) contain the following statement in bold
169	169	print: "Under state law, the dollar amount of school taxes imposed
170	170	on the residence of a person 65 years of age or older or of the
171	171	surviving spouse of such a person, if the surviving spouse was 55
172	172	years of age or older when the person died, may not be increased
173	173	above the amount paid in the first year after the person turned 65,
174	174	regardless of changes in tax rate or property value.";
175	175	(8) contain the following statement in bold
176	176	print: "Notice of Maximum Maintenance Tax [Rollback] Rate: The
177	177	highest maintenance tax rate the district can adopt before
178	178	requiring voter approval at an election is (the maximum maintenance
179	179	tax rate the district may adopt before requiring voter approval at
180	180	an election under Section 45.003 [school district rollback rate
181	181	determined under Section 26.08, Tax Code]). [This election will be
182	182	automatically held if the district adopts a rate in excess of the
183	183	rollback rate of (the school district rollback rate).]"; and
184	184	(9) contain a section entitled "Fund Balances," which
185	185	must include the estimated amount of interest and sinking fund
186	186	balances and the estimated amount of maintenance and operation or
187	187	general fund balances remaining at the end of the current fiscal
188	188	year that are not encumbered with or by corresponding debt
189	189	obligation, less estimated funds necessary for the operation of the
190	190	district before the receipt of the first payment under Chapter 42 in
191	191	the succeeding school year.
192	192	(i) A school district that uses a certified estimate, as
193	193	authorized by Subsection (h), may adopt a budget at the public
194	194	meeting designated in the notice prepared using the estimate, but
195	195	the district may not adopt a tax rate before the district receives
196	196	the certified appraisal roll for the district required by Section
197	197	26.01(a), Tax Code. After receipt of the certified appraisal roll,
198	198	the district must publish a revised notice and hold another public
199	199	meeting before the district may adopt a tax rate that exceeds[:
200	200	[(1)] the rate proposed in the notice prepared using
201	201	the estimate[; or
202	202	[(2) the district's rollback rate determined under
203	203	Section 26.08, Tax Code, using the certified appraisal roll].
204	204	SECTION 4. Section 45.003, Education Code, is amended by
205	205	adding Subsection (g) to read as follows:
206	206	(g) Notwithstanding any other law, a district may not adopt
207	207	a maintenance tax rate for the current tax year that exceeds the sum
208	208	of:
209	209	(1) the district's maintenance tax rate for the
210	210	preceding tax year; and
211	211	(2) the rate of four cents per $100 of taxable value in
212	212	the district.
213	213	SECTION 5. (a) Section 42.302(a-2), Education Code, is
214	214	repealed.
215	215	(b) Sections 26.08 and 313.029, Tax Code, are repealed.
216	216	(c) Section 2, Chapter 1191 (H.B. 828), Acts of the 80th
217	217	Legislature, Regular Session, 2007, which amended Subsection
218	218	(a-1), Section 42.302, Education Code, is repealed.
219	219	SECTION 6. To the extent of any conflict, this Act prevails
220	220	over another Act of the 81st Legislature, Regular Session, 2009,
221	221	relating to nonsubstantive additions to and corrections in enacted
222	222	codes.
223	223	SECTION 7. (a) The changes in law made by Sections 1, 3, 4,
224	224	and 5(b) of this Act apply to the ad valorem tax rate of a school
225	225	district beginning with the 2009 tax year, except as provided by
226	226	Subsection (b) of this section.
227	227	(b) If the governing body of a school district adopted an ad
228	228	valorem tax rate for the school district for the 2009 tax year
229	229	before the effective date of Sections 1, 3, 4, and 5(b) of this Act,
230	230	the changes in law made by Sections 1, 3, 4, and 5(b) of this Act
231	231	apply to the ad valorem tax rate of that school district beginning
232	232	with the 2010 tax year, and the law in effect when the tax rate was
233	233	adopted applies to the 2009 tax year with respect to that school
234	234	district.
235	235	SECTION 8. (a) Except as provided by Subsection (b) of this
236	236	section:
237	237	(1) this Act takes effect immediately if it receives a
238	238	vote of two-thirds of all the members elected to each house, as
239	239	provided by Section 39, Article III, Texas Constitution; and
240	240	(2) if this Act does not receive the vote necessary for
241	241	immediate effect, this Act takes effect September 1, 2009.
242	242	(b) Section 42.302(a-1), Education Code, as amended by this
243	243	Act, and the repeal by this Act of Section 42.302(a-2), Education
244	244	Code, take effect September 1, 2009.