By: Koop H.B. No. 393
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the ad valorem rollback tax rate of a
municipality.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 26, Tax Code, is amended by adding
Section 26.0442 to read as follows:
Sec. 26.0442. TAX RATE ADJUSTMENT FOR ADDITIONAL MUNICIPAL
POLICE AND FIRE FIGHTER RETIREMENT SYSTEMS EXPENDITURES. (a) In
this section, "additional municipal police and fire fighter
retirement systems expenditures" for a tax year means the amount by
which the amount of municipal contributions required by Section
4.02, Article 6243a-1, Revised Statutes, that were made by a
municipality in the period beginning on July 1 of the year preceding
the tax year for which the tax is adopted and ending on June 30 of
the tax year for which the tax is adopted exceeds the amount of
municipal contributions that would have been required by that
section to have been made by that municipality in that period if
that section had not been amended by H.B. 3158, Acts of the 85th
Legislature, Regular Session, 2017.
(b) In the first tax year in which a municipality adopts a
tax rate after January 1, 2018, and in which the municipality makes
additional municipal police and fire fighter retirement systems
expenditures, the effective maintenance and operations rate for the
municipality is increased by the rate computed according to the
following formula:
Additional Municipal Police and Fire Fighter Retirement
Systems Expenditures / (Current Total Value - New Property
Value)
(c) In each subsequent tax year, if the municipality's
additional municipal police and fire fighter retirement systems
expenditures exceed the amount of those expenditures for the
preceding year, the effective maintenance and operations rate for
the municipality is increased by the rate computed according to the
following formula:
(Current Tax Year's Additional Municipal Police and Fire
Fighter Retirement Systems Expenditures - Preceding Tax
Year's Additional Municipal Police and Fire Fighter
Retirement Systems Expenditures) / (Current Total Value - New
Property Value)
(d) The municipality shall include a notice of the increase
in its effective maintenance and operations rate provided by this
section, including a brief description and the amount of the
additional municipal police and fire fighter retirement systems
expenditures, in the information published under Section 26.04(e)
and, if applicable, Section 26.06(b).
Section 2: Section 26.0442, Tax Code, as added by this Act,
applies to the effective maintenance and operations rate of a
municipality beginning with the 2018 tax year.
Section 3: CONTINGENCY. (a) This Act takes effect only if
the 85th Legislature, 1st Called Session, 2017, enacts the
following and the Act become law:
(1) S.B. 1 or another Act that lowers the rollback rate
from eight percent to six percent and requires an automatic tax
ratification election if the rollback rate is exceeded.
Section 4: EFFECTIVE DATE: This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect on the 91st day after the
last day of the legislative session.