By: Hochberg H.B. No. 2484
A BILL TO BE ENTITLED
AN ACT
relating to the state property tax compression percentage and the
homestead property tax exemption under the public school finance
system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.2516, Education Code, is amended by
amending Subsections (a), (b), (b-1), (f-1), (g) and (h) and adding
Subsections (a-1) and (i) to read as follows:
(a) In this section, "state compression percentage" means
the percentage, as determined by the commissioner, 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. Subject to Subsection (a-1), the
[The] commissioner 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) The state compression percentage must be at least the
percentage required to maintain the amount of state and local
revenue per student in weighted average daily attendance for
maintenance and operations to which each district is entitled under
this section.
(b) Subject to Subsection (g), but notwithstanding
[Notwithstanding] any other provision of this title, a school
district that imposes a maintenance and operations tax at a rate at
least equal to the product of the state compression percentage
multiplied by the maintenance and operations tax rate adopted by
the district for the 2005 tax year is entitled to at least the
amount of state revenue necessary to provide the district with the
sum of:
(1) [as calculated under Subsection (e),] the amount
of state and local revenue per student in weighted average daily
attendance for maintenance and operations that the district [would
have] received during the 2010-2011 [2009-2010] school year [under
Chapter 41 and this chapter, as those chapters existed on January 1,
2009,] at a maintenance and operations tax rate equal to the product
of the state compression percentage for that year multiplied by the
maintenance and operations tax rate adopted by the district for the
2005 tax year;
(2) [an amount equal to the product of $120 multiplied
by the number of students in weighted average daily attendance in
the district;
[(3)] an amount equal to the amount the district is
required to pay into the tax increment fund for a reinvestment zone
under Section 311.013(n), Tax Code, in the current tax year; and
(3) [(4)] any amount to which the district is entitled
under Section 42.106.
(b-1) The amount determined for a school district under
Subsection (b) is increased or reduced as follows:
(1) if for any school year the district is entitled to
a greater allotment under Section 42.155 or 42.158 or more
additional state aid under Section 42.2515 than the allotment or
additional state aid to which the district was entitled under
Section 42.155, 42.158, or 42.2515, as applicable, for the
2010-2011 [2009-2010] school year, the district's entitlement
under Subsection (b) is increased by an amount equal to the
difference between the amount to which the district is entitled
under Section 42.155, 42.158, or 42.2515, as applicable, for that
school year and the amount to which the district was entitled under
the applicable section for the 2010-2011 [2009-2010] school year;
and
(2) if for any school year the district is not entitled
to an allotment under Section 42.155 or 42.158 or additional state
aid under Section 42.2515 or is entitled to a lesser allotment or
less additional state aid under the applicable section than the
allotment or additional state aid to which the district was
entitled under the applicable section for the 2010-2011 [2009-2010]
school year, the district's entitlement under Subsection (b) is
reduced by an amount equal to the difference between the amount to
which the district was entitled under Section 42.155, 42.158, or
42.2515, as applicable, for the 2010-2011 [2009-2010] school year
and the amount to which the district is entitled under the
applicable section for the current school year.
(f-1) The commissioner shall, in accordance with rules
adopted by the commissioner, adjust the amount of a school
district's local revenue derived from maintenance and operations
tax collections, as calculated for purposes of determining the
amount of state revenue to which the district is entitled under this
section, if the district, for the 2011 [2010] tax year or a
subsequent tax year:
(1) adopts an exemption under Section 11.13(n), Tax
Code, that was not in effect for the 2010 [2009] tax year, or
eliminates an exemption under Section 11.13(n), Tax Code, that was
in effect for the 2010 [2009] tax year;
(2) adopts an exemption under Section 11.13(n), Tax
Code, at a greater or lesser percentage than the percentage in
effect for the district for the 2010 [2009] tax year;
(3) grants an exemption under an agreement authorized
by Chapter 312, Tax Code, that was not in effect for the 2010 [2009]
tax year, or ceases to grant an exemption authorized by that chapter
that was in effect for the 2010 [2009] tax year; or
(4) agrees to deposit taxes into a tax increment fund
created under Chapter 311, Tax Code, under a reinvestment zone
financing plan that was not in effect for the 2010 [2009] tax year,
or ceases depositing taxes into a tax increment fund created under
that chapter under a reinvestment zone financing plan that was in
effect for the 2010 [2009] tax year.
(g) If a school district adopts a maintenance and operations
tax rate that is below the rate equal to the product of the state
compression percentage multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year,
the commissioner shall reduce the district's entitlement under this
section in proportion to the amount by which the rate equal to the
adopted rate is less than the rate equal to the product of the state
compression percentage multiplied by the rate adopted by the
district for the 2005 tax year.
(h) The commissioner may adopt rules necessary to implement
this section.
(i) [(h)] A determination by the commissioner under this
section is final and may not be appealed.
SECTION 2. Section 42.253(c-1), Education Code, is amended
to read as follows:
(c-1) The amounts to be paid under Section 42.2516(b)(2)
[42.2516(b)(3)] shall be paid at the same time as other state
revenue is paid to the district. Payments shall be based on
amounts paid under Section 42.2516(b)(2) [42.2516(b)(3)] for the
preceding year. Any deficiency shall be paid to the district at
the same time the final amount to be paid to the district is
determined, and any overpayment shall be deducted from the payments
the district would otherwise receive in the following year.
SECTION 3. Sections 42.2516(d) and (e), Education Code, are
repealed.
SECTION 4. Section 11.13(b), Tax Code, is amended to read as
follows:
(b) An adult is entitled to exemption from taxation by a
school district of $45,000 [$15,000] of the appraised value of the
adult's residence homestead, except that $40,000 [$10,000] of the
exemption does not apply to an entity operating under former
Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters
existed on May 1, 1995, as permitted by Section 11.301, Education
Code.
SECTION 5. Section 11.26(a), Tax Code, is amended to read as
follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older or disabled was a tax year before the 2012 [1997] tax
year, the amount of the limitation provided by this section is the
amount of tax the school district imposed for the 2011 [1996] tax
year less an amount equal to the amount determined by multiplying
$30,000 [$10,000] times the tax rate of the school district for the
2012 [1997] tax year, plus any 2012 [1997] tax attributable to
improvements made in 2011 [1996], other than improvements made to
comply with governmental regulations or repairs.
SECTION 6. Section 403.302(j), Government Code, is amended
to read as follows:
(j) For purposes of Chapter 42, Education Code, the
comptroller shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000;
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
Regular Session, 1997; [and]
(3) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $45,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by the joint resolution to amend that
section adopted by the 82nd Legislature, Regular Session, 2011; and
(4) a final value for each school district computed on
the effect of the reduction of the limitation on tax increases to
reflect any reduction in the school district tax rate as provided by
Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable.
SECTION 7. Sections 1, 2 and 3 of this Act take effect
September 1, 2011.
SECTION 8. Sections 4, 5, 6 take effect January 1, 2012, but
only if the constitutional amendment proposed by the 82nd
Legislature, Regular Session, 2011, increasing the amount of the
school district residence homestead property tax exemption to
$45,000 and providing for a corresponding adjustment of the
limitation on school taxes on residence homesteads of elderly and
disabled persons is approved by the voters. If that amendment is
not approved by the voters, those sections have no effect.