| 1 | 1 | | 86R23101 CJC-F |
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| 2 | 2 | | By: Bettencourt S.B. No. 2503 |
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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(n), Tax Code, is amended to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | (n) For purposes of this section, the rollback tax rate of a |
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| 13 | 13 | | school district is [whose maintenance and operations tax rate for |
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| 14 | 14 | | the 2005 tax year was $1.50 or less per $100 of taxable value is: |
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| 15 | 15 | | [(1) for the 2006 tax year, the sum of the rate that is |
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| 16 | 16 | | equal to 88.67 percent of the maintenance and operations tax rate |
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| 17 | 17 | | adopted by the district for the 2005 tax year, the rate of $0.04 per |
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| 18 | 18 | | $100 of taxable value, and the district's current debt rate; and |
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| 19 | 19 | | [(2) for the 2007 and subsequent tax years,] the |
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| 20 | 20 | | lesser of the following: |
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| 21 | 21 | | (1) [(A)] the sum of the following: |
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| 22 | 22 | | (A) [(i)] the rate per $100 of taxable value that |
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| 23 | 23 | | is equal to the product of the state compression percentage, as |
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| 24 | 24 | | determined under Section 42.2516, Education Code, for the current |
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| 25 | 25 | | year and $1.50; |
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| 26 | 26 | | (B) [(ii)] the rate of $0.04 per $100 of taxable |
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| 27 | 27 | | value; |
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| 28 | 28 | | (C) [(iii)] the rate that is equal to the sum of |
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| 29 | 29 | | the differences for the 2006 and each subsequent tax year between |
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| 30 | 30 | | the adopted tax rate of the district for that year if the rate was |
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| 31 | 31 | | approved at an election under this section and the rollback tax rate |
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| 32 | 32 | | of the district for that year; and |
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| 33 | 33 | | (D) [(iv)] the district's current debt rate; or |
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| 34 | 34 | | (2) [(B)] the sum of the following: |
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| 35 | 35 | | (A) [(i) the effective maintenance and |
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| 36 | 36 | | operations tax rate of the district as computed under Subsection |
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| 37 | 37 | | (i) or (k), as applicable; |
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| 38 | 38 | | [(ii)] the rate per $100 of taxable value |
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| 39 | 39 | | that is equal to the product of the effective maintenance and |
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| 40 | 40 | | operations tax rate of the district [state compression percentage], |
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| 41 | 41 | | as computed under Subsection (i), and 1.025 [determined under |
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| 42 | 42 | | Section 42.2516, Education Code, for the current year and $0.06]; |
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| 43 | 43 | | and |
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| 44 | 44 | | (B) [(iii)] the district's current debt rate. |
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| 45 | 45 | | SECTION 2. The change in law made by this Act applies to the |
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| 46 | 46 | | calculation of the rollback tax rate of a school district beginning |
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| 47 | 47 | | with the 2020 tax year. |
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| 48 | 48 | | SECTION 3. This Act takes effect January 1, 2020. |
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