Texas 2019 - 86th Regular

Texas House Bill HB1077 Compare Versions

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Old	New	Differences
1	1	86R3735 GCB/CJC-F
2	2	By: White H.B. No. 1077
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to public school finance, supporting public education
8	8	funding through an increase in the state sales and use tax rate, and
9	9	requiring a reduction in school district maintenance and operation
10	10	ad valorem taxes; making an appropriation; increasing the rate of a
11	11	tax.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Effective September 1, 2020, Section 41.002(a),
14	14	Education Code, is amended to read as follows:
15	15	(a) A school district may not have a wealth per student that
16	16	exceeds:
17	17	(1) the wealth per student that generates the amount
18	18	of maintenance and operations tax revenue per weighted student
19	19	available to a district with maintenance and operations tax revenue
20	20	per cent of tax effort equal to the maximum amount provided per cent
21	21	under Section 42.101(a) or (b), for the district's maintenance and
22	22	operations tax effort equal to or less than the rate equal to the
23	23	sum of the product of the state compression percentage, as
24	24	determined under Section 42.2516, multiplied by the maintenance and
25	25	operations tax rate adopted by the district for the 2005 tax year
26	26	and any additional tax effort included in calculating the
27	27	district's compressed tax rate under Section 42.101(a-1);
28	28	(2) the wealth per student that generates the amount
29	29	of maintenance and operations tax revenue per weighted student
30	30	available to the Austin Independent School District, as determined
31	31	by the commissioner in cooperation with the Legislative Budget
32	32	Board, for the first six cents by which the district's maintenance
33	33	and operations tax rate exceeds the rate equal to the sum of the
34	34	product of the state compression percentage, as determined under
35	35	Section 42.2516, multiplied by the maintenance and operations tax
36	36	rate adopted by the district for the 2005 tax year and any
37	37	additional tax effort included in calculating the district's
38	38	compressed tax rate under Section 42.101(a-1), subject to Section
39	39	41.093(b-1); or
40	40	(3) the wealth per student that yields the guaranteed
41	41	level of state and local funds per weighted student in average daily
42	42	attendance per cent of tax effort as provided by Section
43	43	42.302(a-1)(2) [$319,500], for the district's maintenance and
44	44	operations tax effort that exceeds the amount of tax effort
45	45	described by Subdivision (2).
46	46	SECTION 2. Effective September 1, 2020, Section 42.101,
47	47	Education Code, is amended by amending Subsection (a) and adding
48	48	Subsections (a-3) and (a-4) to read as follows:
49	49	(a) Except as provided by Subsection (a-3), for [For] each
50	50	student in average daily attendance, not including the time
51	51	students spend each day in special education programs in an
52	52	instructional arrangement other than mainstream or career and
53	53	technology education programs, for which an additional allotment is
54	54	made under Subchapter C, a district is entitled to an allotment
55	55	equal to the lesser of $5,140 [$4,765] or the amount that results
56	56	from the following formula:
57	57	A = $5,140 [$4,765] X (DCR/MCR)
58	58	where:
59	59	"A" is the allotment to which a district is entitled;
60	60	"DCR" is the district's compressed tax rate, which is the
61	61	product of the state compression percentage, as determined under
62	62	Section 42.2516, multiplied by the maintenance and operations tax
63	63	rate adopted by the district for the 2005 tax year; and
64	64	"MCR" is the state maximum compressed tax rate, which is the
65	65	product of the state compression percentage, as determined under
66	66	Section 42.2516, multiplied by $1.50.
67	67	(a-3) Beginning with the 2020-2021 school year, the
68	68	commissioner shall recompute the amount of the basic allotment
69	69	under Subsection (a) to the maximum amount possible using the funds
70	70	appropriated to the foundation school fund under Section 151.803,
71	71	Tax Code, after the additional costs under Sections 41.002(a)(3)
72	72	and 42.302, as amended by __.B. ___, Acts of the 86th Legislature,
73	73	Regular Session, 2019, are deducted, including the required
74	74	reduction in the calculation of compressed tax rates under
75	75	Subsection (a-4).
76	76	(a-4) Beginning with the 2020-2021 school year, the
77	77	commissioner shall recompute the calculation of each district's
78	78	maximum compressed tax rate under Subsections (a) and (a-1) and the
79	79	district's tax rate under Section 42.252 to be a rate that would
80	80	entitle the district to an amount of state and local funds per
81	81	weighted student in average daily attendance in the current year,
82	82	using the basic allotment under Subsection (a), equal to the amount
83	83	of state and local funds to which the district would have been
84	84	entitled under Chapter 41 and this chapter for the current school
85	85	year if the guaranteed level under Subsection (a) had remained at
86	86	$5,140.
87	87	SECTION 3. Effective September 1, 2020, Section 42.302,
88	88	Education Code, is amended by amending Subsection (a-1) and adding
89	89	Subsection (a-3) to read as follows:
90	90	(a-1) For purposes of Subsection (a), the dollar amount
91	91	guaranteed level of state and local funds per weighted student per
92	92	cent of tax effort ("GL") for a school district is:
93	93	(1) the greater of the amount of district tax revenue
94	94	per weighted student per cent of tax effort that would be available
95	95	to the Austin Independent School District, as determined by the
96	96	commissioner in cooperation with the Legislative Budget Board, if
97	97	the reduction of the limitation on tax increases as provided by
98	98	Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
99	99	amount of district tax revenue per weighted student per cent of tax
100	100	effort used for purposes of this subdivision in the preceding
101	101	school year, for the first six cents by which the district's
102	102	maintenance and operations tax rate exceeds the rate equal to the
103	103	sum of the product of the state compression percentage, as
104	104	determined under Section 42.2516, multiplied by the maintenance and
105	105	operations tax rate adopted by the district for the 2005 tax year
106	106	and any additional tax effort included in calculating the
107	107	district's compressed tax rate under Section 42.101(a-1); and
108	108	(2) the quotient of the maximum basic allotment
109	109	allowed under Section 42.101(a) or (b) divided by 100 [$31.95], for
110	110	the district's maintenance and operations tax effort that exceeds
111	111	the amount of tax effort described by Subdivision (1).
112	112	(a-3) For the 2020-2021 school year, the commissioner shall
113	113	recompute the calculation of "DTR" under Subsection (a) for each
114	114	school district to be a rate that would entitle the district to an
115	115	amount of state and local funds per weighted student in average
116	116	daily attendance in the current year, using the guaranteed level of
117	117	state and local funds per cent of tax effort under Subsection
118	118	(a-1)(2), equal to the amount of state and local funds to which the
119	119	district would have been entitled under this chapter for the
120	120	current school year if the guaranteed level under Subsection
121	121	(a-1)(2) had remained at $31.95.
122	122	SECTION 4. Effective September 1, 2020, Section 45.003,
123	123	Education Code, is amended by adding Subsection (g) to read as
124	124	follows:
125	125	(g) Notwithstanding any other law, the maximum maintenance
126	126	tax rate that may be adopted under this section is reduced by the
127	127	average reduction in the tax rate under Section 42.252 resulting
128	128	from the increase in revenue provided from the funds appropriated
129	129	to the foundation school fund under Section 151.803, Tax Code.
130	130	SECTION 5. Section 151.051(b), Tax Code, is amended to read
131	131	as follows:
132	132	(b) The sales tax rate is 7.25 [6-1/4] percent of the sales
133	133	price of the taxable item sold.
134	134	SECTION 6. Subchapter M, Chapter 151, Tax Code, is amended
135	135	by adding Section 151.803 to read as follows:
136	136	Sec. 151.803. ALLOCATION OF CERTAIN REVENUE TO SCHOOL
137	137	DISTRICT PROPERTY TAX REDUCTION. Notwithstanding Section 151.801,
138	138	the comptroller shall deposit an amount of revenue equal to the
139	139	proceeds derived from the collection of taxes imposed by this
140	140	chapter attributable to the portion of the tax rate in excess of
141	141	6.25 percent of the sales price of the taxable item sold to the
142	142	credit of an account in the foundation school fund. Money credited
143	143	to the account may be appropriated only to the Texas Education
144	144	Agency for use by the commissioner of education to provide property
145	145	tax relief by increasing the basic allotment, equalized wealth
146	146	level, and guaranteed level under Chapters 41 and 42, Education
147	147	Code, and requiring the compression of property tax rates.
148	148	SECTION 7. A school district shall use the revenues derived
149	149	from the increase in the equalized wealth level in Section 41.002,
150	150	Education Code, as amended by this Act, the basic allotment under
151	151	Section 42.101(a-3), Education Code, as added by this Act, and the
152	152	guaranteed level in Section 42.302, Education Code, as amended by
153	153	this Act, to reduce the district's tax rate for maintenance and
154	154	operations for the 2020-2021 and 2021-2022 school years. The
155	155	commissioner shall adopt rules regarding the operation and
156	156	enforcement of this section.
157	157	SECTION 8. For the state fiscal year beginning September 1,
158	158	2020, all money credited to the account created under Section
159	159	151.803, Tax Code, as added by this Act, preceding or during that
160	160	year is appropriated from that account to the Texas Education
161	161	Agency to be used by the commissioner of education to increase the
162	162	basic allotment, equalized wealth level, and guaranteed level under
163	163	Chapters 41 and 42, Education Code, and require the compression of
164	164	property tax rates.
165	165	SECTION 9. The change in law made by this Act does not
166	166	affect taxes imposed before the effective date of this Act, and the
167	167	law in effect before that date is continued in effect for purposes
168	168	of the liability for and collection of those taxes.
169	169	SECTION 10. Except as otherwise provided by this Act, this
170	170	Act takes effect January 1, 2020.