Texas 2015 - 84th Regular

Texas Senate Bill SB766 Compare Versions

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

Old	New	Differences
1	1	84R586 SMH-D
2	2	By: Bettencourt S.B. No. 766
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the calculation of certain ad valorem tax rates of a
8	8	taxing unit.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 26.04(c), (e), and (e-1), Tax Code, are
11	11	amended to read as follows:
12	12	(c) An officer or employee designated by the governing body
13	13	shall calculate the effective tax rate and the rollback tax rate for
14	14	the unit, where:
15	15	(1) "Effective tax rate" means a rate expressed in
16	16	dollars per $100 of taxable value calculated according to the
17	17	following formula:
18	18	EFFECTIVE TAX RATE = LAST YEAR'S LEVY / (CURRENT TOTAL
19	19	VALUE - NEW PROPERTY VALUE) [(LAST YEAR'S LEVY - LOST
20	20	PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY
21	21	VALUE)]
22	22	; and
23	23	(2) "Rollback tax rate" means a rate expressed in
24	24	dollars per $100 of taxable value calculated according to:
25	25	(A) the following formula for a taxing unit other
26	26	than a school district:
27	27	ROLLBACK TAX RATE = EFFECTIVE TAX RATE x 1.08 [(EFFECTIVE
28	28	MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT RATE]
29	29	; or
30	30	(B) Section 26.08 for a school district.
31	31	(e) By August 7 or as soon thereafter as practicable, the
32	32	designated officer or employee shall submit the rates to the
33	33	governing body. The designated officer or employee [He] shall
34	34	deliver by mail to each property owner in the unit or publish in a
35	35	newspaper in the form prescribed by the comptroller:
36	36	(1) the effective tax rate, the rollback tax rate, and
37	37	an explanation of how they were calculated;
38	38	(2) the estimated amount of interest and sinking fund
39	39	balances and the estimated amount of maintenance and operation or
40	40	general fund balances remaining at the end of the current fiscal
41	41	year that are not encumbered with or by corresponding existing debt
42	42	obligation;
43	43	(3) a schedule of the unit's debt obligations showing:
44	44	(A) the amount of principal and interest that
45	45	will be paid to service the unit's debts in the next year from
46	46	property tax revenue, including payments of lawfully incurred
47	47	contractual obligations providing security for the payment of the
48	48	principal of and interest on bonds and other evidences of
49	49	indebtedness issued on behalf of the unit by another political
50	50	subdivision and, if the unit is created under Section 52, Article
51	51	III, or Section 59, Article XVI, Texas Constitution, payments on
52	52	debts that the unit anticipates to incur in the next calendar year;
53	53	(B) the amount by which taxes imposed for debt
54	54	are to be increased because of the unit's anticipated collection
55	55	rate; and
56	56	(C) the total of the amounts listed in Paragraphs
57	57	(A)-(B), less any amount collected in excess of the previous year's
58	58	anticipated collections certified as provided in Subsection (b);
59	59	(4) the amount of additional sales and use tax revenue
60	60	anticipated in calculations under Section 26.041; and
61	61	(5) a statement that the adoption of a tax rate equal
62	62	to the effective tax rate would result in an increase or decrease,
63	63	as applicable, in the amount of taxes imposed by the unit as
64	64	compared to last year's levy, and the amount of the increase or
65	65	decrease[;
66	66	[(6) in the year that a taxing unit calculates an
67	67	adjustment under Subsection (i) or (j), a schedule that includes
68	68	the following elements:
69	69	[(A) the name of the unit discontinuing the
70	70	department, function, or activity;
71	71	[(B) the amount of property tax revenue spent by
72	72	the unit listed under Paragraph (A) to operate the discontinued
73	73	department, function, or activity in the 12 months preceding the
74	74	month in which the calculations required by this chapter are made;
75	75	and
76	76	[(C) the name of the unit that operates a
77	77	distinct department, function, or activity in all or a majority of
78	78	the territory of a taxing unit that has discontinued operating the
79	79	distinct department, function, or activity; and
80	80	[(7) in the year following the year in which a taxing
81	81	unit raised its rollback rate as required by Subsection (j), a
82	82	schedule that includes the following elements:
83	83	[(A) the amount of property tax revenue spent by
84	84	the unit to operate the department, function, or activity for which
85	85	the taxing unit raised the rollback rate as required by Subsection
86	86	(j) for the 12 months preceding the month in which the calculations
87	87	required by this chapter are made; and
88	88	[(B) the amount published by the unit in the
89	89	preceding tax year under Subdivision (6)(B)].
90	90	(e-1) The notice requirements imposed by Subsection (e)
91	91	[Subsections (e)(1)-(6)] do not apply to a school district.
92	92	SECTION 2. Sections 26.041(a), (b), and (c), Tax Code, are
93	93	amended to read as follows:
94	94	(a) In the first year in which an additional sales and use
95	95	tax is required to be collected, the effective tax rate and rollback
96	96	tax rate for the unit are calculated according to the following
97	97	formulas:
98	98	EFFECTIVE TAX RATE = [LAST YEAR'S LEVY / (CURRENT TOTAL
99	99	VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN RATE
100	100	[(LAST YEAR'S LEVY - LOST PROPERTY LEVY) / (CURRENT
101	101	TOTAL VALUE - NEW PROPERTY VALUE) - SALES TAX GAIN
102	102	RATE]
103	103	and
104	104	ROLLBACK TAX RATE = (EFFECTIVE TAX RATE x 1.08) - SALES
105	105	TAX GAIN RATE [(EFFECTIVE MAINTENANCE AND OPERATIONS
106	106	RATE x 1.08) + CURRENT DEBT RATE - SALES TAX GAIN RATE]
107	107	where "sales tax gain rate" means a number expressed in
108	108	dollars per $100 of taxable value, calculated by dividing the
109	109	revenue that will be generated by the additional sales and use tax
110	110	in the following year as calculated under Subsection (d) [of this
111	111	section] by the current total value.
112	112	(b) Except as provided by Subsections (a) and (c) [of this
113	113	section], in a year in which a taxing unit imposes an additional
114	114	sales and use tax the rollback tax rate for the unit is calculated
115	115	according to the following formula, regardless of whether the unit
116	116	levied a property tax in the preceding year:
117	117	ROLLBACK TAX RATE = [(LAST YEAR'S EXPENSE x 1.08) /
118	118	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX
119	119	REVENUE RATE [[(LAST YEAR'S MAINTENANCE AND OPERATIONS
120	120	EXPENSE x 1.08) / (TOTAL CURRENT VALUE - NEW PROPERTY
121	121	VALUE)] + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)]
122	122	where "last year's [maintenance and operations] expense"
123	123	means the amount spent [for maintenance and operations] from
124	124	property tax and additional sales and use tax revenues in the
125	125	preceding year, and "sales tax revenue rate" means a number
126	126	expressed in dollars per $100 of taxable value, calculated by
127	127	dividing the revenue that will be generated by the additional sales
128	128	and use tax in the current year as calculated under Subsection (d)
129	129	[of this section] by the current total value.
130	130	(c) In a year in which a taxing unit that has been imposing
131	131	an additional sales and use tax ceases to impose an additional sales
132	132	and use tax the effective tax rate and rollback tax rate for the
133	133	unit are calculated according to the following formulas:
134	134	EFFECTIVE TAX RATE = [LAST YEAR'S LEVY / (CURRENT TOTAL
135	135	VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS RATE
136	136	[[(LAST YEAR'S LEVY - LOST PROPERTY LEVY) / (CURRENT
137	137	TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS
138	138	RATE]
139	139	and
140	140	ROLLBACK TAX RATE = (LAST YEAR'S EXPENSE x 1.08) /
141	141	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE) [[(LAST
142	142	YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) /
143	143	(TOTAL CURRENT VALUE - NEW PROPERTY VALUE)] + CURRENT
144	144	DEBT RATE]
145	145	where "sales tax loss rate" means a number expressed in
146	146	dollars per $100 of taxable value, calculated by dividing the
147	147	amount of sales and use tax revenue generated in the last four
148	148	quarters for which the information is available by the current
149	149	total value and "last year's [maintenance and operations] expense"
150	150	means the amount spent [for maintenance and operations] from
151	151	property tax and additional sales and use tax revenues in the
152	152	preceding year.
153	153	SECTION 3. Sections 26.044(a), (b), and (c), Tax Code, are
154	154	amended to read as follows:
155	155	(a) The first time that a county adopts a tax rate after
156	156	September 1, 1991, in which the state criminal justice mandate
157	157	applies to the county, the effective maintenance and operation rate
158	158	and effective tax rate for the county are [is] increased by the rate
159	159	calculated according to the following formula:
160	160	(State Criminal Justice Mandate) / (Current Total
161	161	Value - New Property Value)
162	162	(b) In the second and subsequent years that a county adopts
163	163	a tax rate, if the amount spent by the county for the state criminal
164	164	justice mandate increased over the previous year, the effective
165	165	maintenance and operation rate and effective tax rate for the
166	166	county are [is] increased by the rate calculated according to the
167	167	following formula:
168	168	(This Year's State Criminal Justice Mandate - Previous
169	169	Year's State Criminal Justice Mandate) / (Current
170	170	Total Value - New Property Value)
171	171	(c) The county shall include a notice of the increase in the
172	172	effective maintenance and operation rate and effective tax rate
173	173	provided by this section, including a description and amount of the
174	174	state criminal justice mandate, in the information published under
175	175	Section 26.04(e) and Section 26.06(b) [of this code].
176	176	SECTION 4. Sections 26.0441(a), (b), and (c), Tax Code, are
177	177	amended to read as follows:
178	178	(a) In the first tax year in which a taxing unit adopts a tax
179	179	rate after January 1, 2000, and in which the enhanced minimum
180	180	eligibility standards for indigent health care established under
181	181	Section 61.006, Health and Safety Code, apply to the taxing unit,
182	182	the effective maintenance and operations rate and effective tax
183	183	rate for the taxing unit are [is] increased by the rate computed
184	184	according to the following formula:
185	185	Amount of Increase = Enhanced Indigent Health Care
186	186	Expenditures / (Current Total Value - New Property
187	187	Value)
188	188	(b) In each subsequent tax year, if the taxing unit's
189	189	enhanced indigent health care expenses exceed the amount of those
190	190	expenses for the preceding year, the effective maintenance and
191	191	operations rate and effective tax rate for the taxing unit are [is]
192	192	increased by the rate computed according to the following formula:
193	193	Amount of Increase = (Current Tax Year's Enhanced
194	194	Indigent Health Care Expenditures - Preceding Tax
195	195	Year's Indigent Health Care Expenditures) / (Current
196	196	Total Value - New Property Value)
197	197	(c) The taxing unit shall include a notice of the increase
198	198	in its effective maintenance and operations rate and effective tax
199	199	rate provided by this section, including a brief description and
200	200	the amount of the enhanced indigent health care expenditures, in
201	201	the information published under Section 26.04(e) and, if
202	202	applicable, Section 26.06(b).
203	203	SECTION 5. Section 26.08(n), Tax Code, is amended to read as
204	204	follows:
205	205	(n) For purposes of this section, the rollback tax rate of a
206	206	school district [whose maintenance and operations tax rate for the
207	207	2005 tax year was $1.50 or less per $100 of taxable value] is equal
208	208	to the amount computed by multiplying the effective tax rate of the
209	209	district by 1.04[:
210	210	[(1) for the 2006 tax year, the sum of the rate that is
211	211	equal to 88.67 percent of the maintenance and operations tax rate
212	212	adopted by the district for the 2005 tax year, the rate of $0.04 per
213	213	$100 of taxable value, and the district's current debt rate; and
214	214	[(2) for the 2007 and subsequent tax years, the lesser
215	215	of the following:
216	216	[(A) the sum of the following:
217	217	[(i) the rate per $100 of taxable value that
218	218	is equal to the product of the state compression percentage, as
219	219	determined under Section 42.2516, Education Code, for the current
220	220	year and $1.50;
221	221	[(ii) the rate of $0.04 per $100 of taxable
222	222	value;
223	223	[(iii) the rate that is equal to the sum of
224	224	the differences for the 2006 and each subsequent tax year between
225	225	the adopted tax rate of the district for that year if the rate was
226	226	approved at an election under this section and the rollback tax rate
227	227	of the district for that year; and
228	228	[(iv) the district's current debt rate; or
229	229	[(B) the sum of the following:
230	230	[(i) the effective maintenance and
231	231	operations tax rate of the district as computed under Subsection
232	232	(i) or (k), as applicable;
233	233	[(ii) the rate per $100 of taxable value
234	234	that is equal to the product of the state compression percentage, as
235	235	determined under Section 42.2516, Education Code, for the current
236	236	year and $0.06; and
237	237	[(iii) the district's current debt rate].
238	238	SECTION 6. Section 42.2522(e), Education Code, is amended
239	239	to read as follows:
240	240	(e) The commissioner shall notify school districts as soon
241	241	as practicable as to the availability of funds under this section.
242	242	[For purposes of computing a rollback tax rate under Section 26.08,
243	243	Tax Code, a district shall adjust the district's tax rate limit to
244	244	reflect assistance received under this section.]
245	245	SECTION 7. Section 45.261(e), Education Code, is amended to
246	246	read as follows:
247	247	(e) Any part of a school district's tax rate attributable to
248	248	producing revenue for purposes of Subsection (c)(1) is considered
249	249	part of the district's[:
250	250	[(1) current debt rate for purposes of computing a
251	251	rollback tax rate under Section 26.08, Tax Code; and
252	252	[(2)] interest and sinking fund tax rate.
253	253	SECTION 8. (a) The following provisions are repealed:
254	254	(1) Section 281.107(j), Health and Safety Code;
255	255	(2) Section 26.01(d), Tax Code;
256	256	(3) Sections 26.012(3), (4), (5), (10), and (15), Tax
257	257	Code;
258	258	(4) Section 26.03, Tax Code;
259	259	(5) Sections 26.04(i) and (j), Tax Code;
260	260	(6) Sections 26.08(e), (g), (h), (i), (i-1), (j), (o),
261	261	and (p), Tax Code; and
262	262	(7) Section 222.1071(l), Transportation Code.
263	263	(b) Section 57.29, Chapter 4 (S.B. 1), Acts of the 82nd
264	264	Legislature, 1st Called Session, 2011, which amended Subsection
265	265	(i), Section 26.08, Tax Code, is repealed.
266	266	SECTION 9. This Act applies to the ad valorem tax rate of a
267	267	taxing unit beginning with the 2016 tax year.
268	268	SECTION 10. This Act takes effect January 1, 2016.