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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the calculation of the rollback tax rate of a school |
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| 8 | 8 | | district. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 26.08, Tax Code, is amended by adding |
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| 11 | 11 | | Subsections (q) and (r) to read as follows: |
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| 12 | 12 | | (q) This subsection applies only to a school district |
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| 13 | 13 | | described by Subsection (n) whose adopted tax rate was approved at |
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| 14 | 14 | | an election under this section in the 2006 tax year or any |
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| 15 | 15 | | subsequent tax year. Notwithstanding Subsection (n), for purposes |
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| 16 | 16 | | of this section, the rollback tax rate of the school district is the |
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| 17 | 17 | | higher of: |
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| 18 | 18 | | (1) the amount computed under Subsection (n); or |
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| 19 | 19 | | (2) the sum of the following: |
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| 20 | 20 | | (A) the highest maintenance and operations tax |
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| 21 | 21 | | rate adopted by the district for the 2007 tax year or any subsequent |
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| 22 | 22 | | tax year in which the adopted tax rate of the district was approved |
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| 23 | 23 | | at an election under this section; and |
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| 24 | 24 | | (B) the district's current debt rate. |
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| 25 | 25 | | (r) Subsection (q) applies to a school district only if: |
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| 26 | 26 | | (1) the district has adopted a tax rate equal to or |
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| 27 | 27 | | higher than the rate provided by that subsection for any tax year in |
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| 28 | 28 | | the preceding 10 tax years; and |
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| 29 | 29 | | (2) in the 2016 tax year or any subsequent tax year the |
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| 30 | 30 | | district adopted a tax rate that was lower than the tax rate |
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| 31 | 31 | | described by Subsection (q)(2). |
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| 32 | 32 | | SECTION 2. The change in law made by this Act applies to the |
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| 33 | 33 | | ad valorem tax rate of a school district beginning with the 2018 tax |
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| 34 | 34 | | year. |
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| 35 | 35 | | SECTION 3. This Act takes effect January 1, 2018. |
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