| 1 | 1 | | 86R331 SMH-F |
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| 2 | 2 | | By: Bucy H.B. No. 841 |
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| 3 | 3 | | |
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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 the |
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| 26 | 26 | | district has adopted a tax rate equal to or higher than the rate |
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| 27 | 27 | | provided by that subsection for any tax year in the preceding 10 tax |
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| 28 | 28 | | years. |
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| 29 | 29 | | SECTION 2. (a) The change in law made by this Act applies to |
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| 30 | 30 | | the ad valorem tax rate of a school district beginning with the 2019 |
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| 31 | 31 | | tax year, except as provided by Subsection (b) of this section. |
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| 32 | 32 | | (b) If the governing body of a school district adopted an ad |
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| 33 | 33 | | valorem tax rate for the school district for the 2019 tax year |
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| 34 | 34 | | before the effective date of this Act, the change in law made by |
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| 35 | 35 | | this Act applies to the ad valorem tax rate of that school district |
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| 36 | 36 | | beginning with the 2020 tax year, and the law in effect when the tax |
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| 37 | 37 | | rate was adopted applies to the 2019 tax year with respect to that |
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| 38 | 38 | | school district. |
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| 39 | 39 | | SECTION 3. This Act takes effect immediately if it receives |
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| 40 | 40 | | a vote of two-thirds of all the members elected to each house, as |
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| 41 | 41 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 42 | 42 | | Act does not receive the vote necessary for immediate effect, this |
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| 43 | 43 | | Act takes effect September 1, 2019. |
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