Texas 2021 - 87th Regular

Texas Senate Bill SB1438 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1438
	1	+	By: Bettencourt S.B. No. 1438
	2	+	(Meyer)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the effect of a disaster on the calculation of certain
6	8		tax rates and the procedure for adoption of a tax rate by a taxing
7	9		unit.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Section 45.0032(d), Education Code, is amended
10	12		to read as follows:
11		-	(d) For a district to which Section 26.042(e) [26.08(a-1)],
	13	+	(d) For a district to which Section 26.042(c) [26.08(a-1)],
12	14		Tax Code, applies, the amount by which the district's maintenance
13	15		tax rate exceeds the district's voter-approval tax rate, excluding
14	16		the district's current debt rate under Section 26.08(n)(3)
15	17		[26.08(n)(1)(C)], Tax Code, for the preceding year is not
16	18		considered in determining a district's tier one maintenance and
17	19		operations tax rate under Subsection (a) or the district's
18	20		enrichment tax rate under Subsection (b) for the current tax year.
19	21		SECTION 2. Section 48.202(f), Education Code, is amended to
20	22		read as follows:
21	23		(f) For a school year in which the dollar amount guaranteed
22	24		level of state and local funds per weighted student per cent of tax
23	25		effort ("GL") under Subsection (a-1)(2) exceeds the dollar amount
24	26		guaranteed level of state and local funds per weighted student per
25	27		cent of tax effort ("GL") under Subsection (a-1)(2) for the
26	28		preceding school year, a school district shall reduce the
27	29		district's tax rate under Section 45.0032(b)(2) for the tax year
28	30		that corresponds to that school year to a rate that results in the
29	31		amount of state and local funds per weighted student per cent of tax
30	32		effort available to the district at the dollar amount guaranteed
31	33		level for the preceding school year. A school district is not
32	34		entitled to the amount equal to the increase of revenue described by
33	35		this subsection for the school year for which the district must
34		-	reduce the district's tax rate. Unless Section 26.042(e)
	36	+	reduce the district's tax rate. Unless Section 26.042(c)
35	37		[26.08(a-1)], Tax Code, applies to the district, for a tax year in
36	38		which a district must reduce the district's tax rate under this
37	39		subsection, the district may not increase the district's
38	40		maintenance and operations tax rate to a rate that exceeds the
39	41		maximum maintenance and operations tax rate permitted under Section
40	42		45.003(d) or (f), as applicable, minus the reduction of tax effort
41	43		required under this subsection. This subsection does not apply if
42	44		the amount of state funds appropriated for a school year
43	45		specifically excludes the amount necessary to provide the dollar
44	46		amount guaranteed level of state and local funds per weighted
45	47		student per cent of tax effort under Subsection (a-1)(2).
46	48		SECTION 3. Section 3828.157, Special District Local Laws
47	49		Code, is amended to read as follows:
48	50		Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
49	51		PROVISIONS. Sections 26.04, 26.042, 26.05, 26.07, and 26.075, Tax
50	52		Code, do not apply to a tax imposed under Section 3828.153 or
51	53		3828.156.
52	54		SECTION 4. Section 8876.152(a), Special District Local Laws
53	55		Code, is amended to read as follows:
54	56		(a) Sections 26.04, 26.042, 26.05, 26.06, 26.061, 26.07,
55	57		and 26.075, Tax Code, do not apply to a tax imposed by the district.
56		-	SECTION 5. Section 11.43(s), Tax Code, is amended to read as
57		-	follows:
58		-	(s) A person who qualifies for an exemption under Section
59		-	11.35(b) must apply for the exemption not later than the 105th day
60		-	after the date the governor declares the area in which the person's
61		-	qualified property is located to be a disaster area. [A person who
62		-	qualifies for an exemption under Section 11.35(c) must apply for
63		-	the exemption not later than the 45th day after the date the
64		-	governing body of the taxing unit adopts the exemption.] The chief
65		-	appraiser may extend the deadline [deadlines] prescribed by this
66		-	subsection for good cause shown.
67		-	SECTION 6. Chapter 26, Tax Code, is amended by adding
	58	+	SECTION 5. Chapter 26, Tax Code, is amended by adding
68	59		Section 26.042 to read as follows:
69	60		Sec. 26.042. CALCULATION AND ADOPTION OF CERTAIN TAX RATES
70	61		IN DISASTER AREA. (a) Notwithstanding Sections 26.04 and 26.041,
71		-	the governing body of a taxing unit other than a school district or
72		-	a special taxing unit may direct the designated officer or employee
73		-	to calculate the voter-approval tax rate of the taxing unit in the
74		-	manner provided for a special taxing unit if any part of the taxing
75		-	unit is located in an area declared a disaster area during the
76		-	current tax year by the governor or by the president of the United
77		-	States and at least one person is granted an exemption under Section
78		-	11.35 for property located in the taxing unit. The designated
79		-	officer or employee shall continue calculating the voter-approval
80		-	tax rate in the manner provided by this subsection until the earlier
81		-	of:
	62	+	the governing body of a taxing unit other than a special taxing unit
	63	+	may direct the designated officer or employee to calculate the
	64	+	voter-approval tax rate of the taxing unit in the manner provided
	65	+	for a special taxing unit if any part of the taxing unit is located
	66	+	in an area declared a disaster area during the current tax year by
	67	+	the governor or by the president of the United States and at least
	68	+	one person is granted an exemption under Section 11.35 for property
	69	+	located in the taxing unit. The designated officer or employee
	70	+	shall continue calculating the voter-approval tax rate in the
	71	+	manner provided by this subsection until the earlier of:
82	72		(1) the first tax year in which the total taxable value
83	73		of property taxable by the taxing unit as shown on the appraisal
84	74		roll for the taxing unit submitted by the assessor for the taxing
85	75		unit to the governing body exceeds the total taxable value of
86	76		property taxable by the taxing unit on January 1 of the tax year in
87	77		which the disaster occurred; or
88	78		(2) the third tax year after the tax year in which the
89	79		disaster occurred.
90		-	(b) In the first tax year following the last tax year for
91		-	which the designated officer or employee calculates a taxing unit's
92		-	voter-approval tax rate in the manner provided by Subsection (a),
93		-	the taxing unit's voter-approval tax rate is reduced by the taxing
94		-	unit's emergency revenue rate. For purposes of this subsection, a
95		-	taxing unit's emergency revenue rate means a rate expressed in
96		-	dollars per $100 of taxable value calculated according to the
97		-	following formula:
98		-	EMERGENCY REVENUE RATE = [(LAST YEAR'S ADOPTED TAX RATE -
99		-	ADJUSTED VOTER-APPROVAL TAX RATE) x LAST YEAR'S TOTAL VALUE] /
100		-	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
101		-	(c) For purposes of Subsection (b), "adjusted
102		-	voter-approval tax rate" means the voter-approval tax rate a taxing
103		-	unit would have calculated in the last year for which Subsection (a)
104		-	applied to the taxing unit if in each tax year Subsection (a)
105		-	applied to the taxing unit the taxing unit adopted a tax rate equal
106		-	to the greater of:
107		-	(1) the tax rate actually adopted by the taxing unit
108		-	for that tax year, if that tax rate was approved by the voters at an
109		-	election held under Section 26.07; or
110		-	(2) the taxing unit's voter-approval tax rate for that
111		-	tax year, calculated in the manner provided for a taxing unit other
112		-	than a special taxing unit.
113		-	(d) When increased expenditure of money by a taxing unit
	80	+	(b) When increased expenditure of money by a taxing unit
114	81		other than a school district is necessary to respond to a disaster,
115	82		including a tornado, hurricane, flood, wildfire, or other calamity,
116	83		but not including a drought, epidemic, or pandemic, that has
117	84		impacted the taxing unit and the governor has declared any part of
118	85		the area in which the taxing unit is located as a disaster area, an
119	86		election is not required under Section 26.07 to approve the tax rate
120	87		adopted by the governing body for the year following the year in
121	88		which the disaster occurs.
122		-	(e) When increased expenditure of money by a school district
	89	+	(c) When increased expenditure of money by a school district
123	90		is necessary to respond to a disaster, including a tornado,
124	91		hurricane, flood, wildfire, or other calamity, but not including a
125	92		drought, epidemic, or pandemic, that has impacted the school
126	93		district and the governor has requested federal disaster assistance
127	94		for the area in which the school district is located, an election is
128	95		not required under Section 26.08 to approve the tax rate adopted by
129	96		the governing body of the school district for the year following the
130	97		year in which the disaster occurs. A tax rate adopted under this
131	98		subsection applies only in the year for which the rate is adopted.
132		-	(f) If a taxing unit adopts a tax rate under Subsection (d)
133		-	or (e), the amount by which that rate exceeds the taxing unit's
	99	+	(d) If a taxing unit adopts a tax rate under Subsection (b)
	100	+	or (c), the amount by which that rate exceeds the taxing unit's
134	101		voter-approval tax rate for that tax year may not be considered when
135	102		calculating the taxing unit's voter-approval tax rate for the tax
136	103		year following the year in which the taxing unit adopts the rate.
137		-	(g) A taxing unit that in a tax year elects to calculate the
	104	+	(e) A taxing unit that in a tax year elects to calculate the
138	105		taxing unit's voter-approval tax rate under Subsection (a) or adopt
139	106		a tax rate that exceeds the taxing unit's voter-approval tax rate
140		-	for that tax year without holding an election under Subsection (d)
141		-	or (e) must specify the disaster declaration that provides the
	107	+	for that tax year without holding an election under Subsection (b)
	108	+	or (c) must specify the disaster declaration that provides the
142	109		basis for authorizing the taxing unit to calculate or adopt a tax
143	110		rate under the applicable subsection. A taxing unit that in a tax
144	111		year specifies a disaster declaration as providing the basis for
145	112		authorizing the taxing unit to calculate or adopt a tax rate under
146		-	Subsection (a), (d), or (e) may not in a subsequent tax year specify
	113	+	Subsection (a), (b), or (c) may not in a subsequent tax year specify
147	114		the same disaster declaration as providing the basis for
148	115		authorizing the taxing unit to calculate or adopt a tax rate under
149	116		one of those subsections if in an intervening tax year the taxing
150	117		unit specifies a different disaster declaration as the basis for
151	118		authorizing the taxing unit to calculate or adopt a tax rate under
152	119		one of those subsections.
153		-	SECTION 7. Section 26.07(b), Tax Code, is amended to read as
	120	+	SECTION 6. Section 26.07(b), Tax Code, is amended to read as
154	121		follows:
155	122		(b) If the governing body of a special taxing unit or a
156	123		municipality with a population of 30,000 or more adopts a tax rate
157	124		that exceeds the taxing unit's voter-approval tax rate, or the
158	125		governing body of a taxing unit other than a special taxing unit or
159	126		a municipality with a population of less than 30,000 regardless of
160	127		whether it is a special taxing unit adopts a tax rate that exceeds
161	128		the greater of the taxing unit's voter-approval tax rate or de
162	129		minimis rate, the registered voters of the taxing unit at an
163	130		election held for that purpose must determine whether to approve
164	131		the adopted tax rate. [When increased expenditure of money by a
165	132		taxing unit is necessary to respond to a disaster, including a
166	133		tornado, hurricane, flood, wildfire, or other calamity, but not
167	134		including a drought, that has impacted the taxing unit and the
168	135		governor has declared any part of the area in which the taxing unit
169	136		is located as a disaster area, an election is not required under
170	137		this section to approve the tax rate adopted by the governing body
171	138		for the year following the year in which the disaster occurs.]
172		-	SECTION 8. Section 49.107(g), Water Code, is amended to
	139	+	SECTION 7. Section 49.107(g), Water Code, is amended to
173	140		read as follows:
174	141		(g) Sections 26.04, 26.042, 26.05, 26.061, 26.07, and
175	142		26.075, Tax Code, do not apply to a tax levied and collected under
176	143		this section or an ad valorem tax levied and collected for the
177	144		payment of the interest on and principal of bonds issued by a
178	145		district.
179		-	SECTION 9. Section 49.108(f), Water Code, is amended to
	146	+	SECTION 8. Section 49.108(f), Water Code, is amended to
180	147		read as follows:
181	148		(f) Sections 26.04, 26.042, 26.05, 26.061, 26.07, and
182	149		26.075, Tax Code, do not apply to a tax levied and collected for
183	150		payments made under a contract approved in accordance with this
184	151		section.
185		-	SECTION 10. The following provisions of the Tax Code are
186		-	repealed:
187		-	(1) Sections 11.35(c), (d), and (e);
188		-	(2) Section 26.04(c-1);
189		-	(3) Section 26.041(c-1); and
190		-	(4) Section 26.08(a-1).
191		-	SECTION 11. The changes in law made by this Act to Sections
192		-	11.35 and 11.43, Tax Code, apply only to ad valorem taxes imposed
193		-	for a tax year that begins on or after January 1, 2022.
194		-	SECTION 12. This Act takes effect immediately if it
	152	+	SECTION 9. Sections 26.04(c-1), 26.041(c-1), and
	153	+	26.08(a-1), Tax Code, are repealed.
	154	+	SECTION 10. This Act takes effect immediately if it
195	155		receives a vote of two-thirds of all the members elected to each
196	156		house, as provided by Section 39, Article III, Texas Constitution.
197	157		If this Act does not receive the vote necessary for immediate
198	158		effect, this Act takes effect September 1, 2021.
199		-	______________________________ ______________________________
200		-	President of the Senate Speaker of the House
201		-	I hereby certify that S.B. No. 1438 passed the Senate on
202		-	April 19, 2021, by the following vote: Yeas 21, Nays 10;
203		-	May 10, 2021, Senate refused to concur in House amendments and
204		-	requested appointment of Conference Committee; May 14, 2021, House
205		-	granted request of the Senate; May 29, 2021, Senate adopted
206		-	Conference Committee Report by the following vote: Yeas 21,
207		-	Nays 10.
208		-	______________________________
209		-	Secretary of the Senate
210		-	I hereby certify that S.B. No. 1438 passed the House, with
211		-	amendments, on April 29, 2021, by the following vote: Yeas 103,
212		-	Nays 43, one present not voting; May 14, 2021, House granted
213		-	request of the Senate for appointment of Conference Committee;
214		-	May 30, 2021, House adopted Conference Committee Report by the
215		-	following vote: Yeas 127, Nays 15, one present not voting.
216		-	______________________________
217		-	Chief Clerk of the House
218		-	Approved:
219		-	______________________________
220		-	Date
221		-	______________________________
222		-	Governor