Texas 2017 - 85th 1st C.S.

Texas House Bill HB393 Compare Versions

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

Old	New	Differences
1	1	By: Koop H.B. No. 393
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4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the calculation of the ad valorem rollback tax rate of a
7	7	municipality.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 26, Tax Code, is amended by adding
10	10	Section 26.0442 to read as follows:
11	11	Sec. 26.0442. TAX RATE ADJUSTMENT FOR ADDITIONAL MUNICIPAL
12	12	POLICE AND FIRE FIGHTER RETIREMENT SYSTEMS EXPENDITURES. (a) In
13	13	this section, "additional municipal police and fire fighter
14	14	retirement systems expenditures" for a tax year means the amount by
15	15	which the amount of municipal contributions required by Section
16	16	4.02, Article 6243a-1, Revised Statutes, that were made by a
17	17	municipality in the period beginning on July 1 of the year preceding
18	18	the tax year for which the tax is adopted and ending on June 30 of
19	19	the tax year for which the tax is adopted exceeds the amount of
20	20	municipal contributions that would have been required by that
21	21	section to have been made by that municipality in that period if
22	22	that section had not been amended by H.B. 3158, Acts of the 85th
23	23	Legislature, Regular Session, 2017.
24	24	(b) In the first tax year in which a municipality adopts a
25	25	tax rate after January 1, 2018, and in which the municipality makes
26	26	additional municipal police and fire fighter retirement systems
27	27	expenditures, the effective maintenance and operations rate for the
28	28	municipality is increased by the rate computed according to the
29	29	following formula:
30	30	Additional Municipal Police and Fire Fighter Retirement
31	31	Systems Expenditures / (Current Total Value - New Property
32	32	Value)
33	33	(c) In each subsequent tax year, if the municipality's
34	34	additional municipal police and fire fighter retirement systems
35	35	expenditures exceed the amount of those expenditures for the
36	36	preceding year, the effective maintenance and operations rate for
37	37	the municipality is increased by the rate computed according to the
38	38	following formula:
39	39	(Current Tax Year's Additional Municipal Police and Fire
40	40	Fighter Retirement Systems Expenditures - Preceding Tax
41	41	Year's Additional Municipal Police and Fire Fighter
42	42	Retirement Systems Expenditures) / (Current Total Value - New
43	43	Property Value)
44	44	(d) The municipality shall include a notice of the increase
45	45	in its effective maintenance and operations rate provided by this
46	46	section, including a brief description and the amount of the
47	47	additional municipal police and fire fighter retirement systems
48	48	expenditures, in the information published under Section 26.04(e)
49	49	and, if applicable, Section 26.06(b).
50	50	Section 2: Section 26.0442, Tax Code, as added by this Act,
51	51	applies to the effective maintenance and operations rate of a
52	52	municipality beginning with the 2018 tax year.
53	53	Section 3: CONTINGENCY. (a) This Act takes effect only if
54	54	the 85th Legislature, 1st Called Session, 2017, enacts the
55	55	following and the Act become law:
56	56	(1) S.B. 1 or another Act that lowers the rollback rate
57	57	from eight percent to six percent and requires an automatic tax
58	58	ratification election if the rollback rate is exceeded.
59	59	Section 4: EFFECTIVE DATE: This Act takes effect
60	60	immediately if it receives a vote of two-thirds of all the members
61	61	elected to each house, as provided by Section 39, Article III, Texas
62	62	Constitution. If this Act does not receive the vote necessary for
63	63	immediate effect, this Act takes effect on the 91st day after the
64	64	last day of the legislative session.