85R23340 SMH-F
By: VanDeaver, Howard H.B. No. 486
Substitute the following for H.B. No. 486:
By: Stephenson C.S.H.B. No. 486
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the rollback tax rate of a school
district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.08, Tax Code, is amended by adding
Subsections (q), (r), and (s) to read as follows:
(q) This subsection applies only to a school district
described by Subsection (n) whose adopted tax rate was approved at
an election under this section in the 2006 tax year or any
subsequent tax year. Notwithstanding Subsection (n), for purposes
of this section, the rollback tax rate of the school district is the
higher of:
(1) the amount computed under Subsection (n); or
(2) the sum of the following:
(A) the highest maintenance and operations tax
rate adopted by the district for the 2007 tax year or any subsequent
tax year in which the adopted tax rate of the district was approved
at an election under this section; and
(B) the district's current debt rate.
(r) Subsection (q) applies to a school district only if the
district has adopted a tax rate equal to or higher than the rate
provided by that subsection for any tax year in the preceding 10 tax
years.
(s) Subsection (q) does not apply to a school district if:
(1) in the 2007 tax year or a subsequent tax year
before the 2016 tax year the district's adopted tax rate was
approved at an election under this section and the maintenance and
operations tax rate adopted by the district for that tax year was
higher than the sum of the rates described by Subsections
(n)(2)(A)(i) and (ii);
(2) in the 2016 tax year the district adopted a
maintenance and operations tax rate that was:
(A) lower than the highest maintenance and
operations tax rate adopted by the district for a tax year in which
the district's adopted tax rate was approved at an election in a tax
year described by Subdivision (1); and
(B) higher than the sum of the rates described by
Subsections (n)(2)(A)(i) and (ii); and
(3) the district's adopted tax rate has not been
approved at an election under this section since the 2016 tax year.
SECTION 2. The change in law made by this Act applies to the
ad valorem tax rate of a school district beginning with the 2018 tax
year.
SECTION 3. This Act takes effect January 1, 2018.