By: Middleton H.B. No. 113
A BILL TO BE ENTITLED
AN ACT
relating to a temporary reduction in the maximum compressed tax
rate of a school district and the form of the ballot proposition to
be used in an election to approve a tax rate adopted by a school
district that exceeds the district's voter-approval tax rate;
making appropriations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2555 to read as follows:
Sec. 48.2555. MAXIMUM COMPRESSED TAX RATE FOR 2022-2023
SCHOOL YEAR. (a) Notwithstanding any other provision of this title
or Chapter 26, Tax Code, for the 2022-2023 school year, the
commissioner shall calculate the value of a school district's
maximum compressed tax rate by determining the district's maximum
compressed rate under Section 48.2551 or 48.2552(b), if applicable,
and reducing the tax rate determined under the applicable section
by the amount by which the commissioner may reduce each district's
maximum compressed tax rate by an equal amount using funds
appropriated for the purpose of reducing each district's maximum
compressed tax rate under this section.
(b) If a school district's maximum compressed tax rate as
calculated under Subsection (a) would be less than 90 percent of
another school district's maximum compressed tax rate under
Subsection (a), the district's maximum compressed tax rate is the
value at which the district's maximum compressed tax rate would be
equal to 90 percent of the other district's maximum compressed tax
rate.
(c) Notwithstanding any other provision of this title or
Chapter 26, Tax Code, for purposes of determining funding for
school districts for the 2022-2023 school year, a reference in any
of the following provisions of law to a school district's maximum
compressed tax rate or maximum compressed rate as determined under
Section 48.2551 means the maximum compressed tax rate determined
for the district under this section:
(1) Sections 13.054(f) and (f-1);
(2) Section 45.003(d);
(3) Section 45.0032(a);
(4) Section 48.051(a);
(5) Sections 48.2553(a) and (e); and
(6) Section 26.08(n), Tax Code.
(d) For purposes of Section 30.003(f-1), a reference in that
section to Section 48.2551 includes this section.
(e) Notwithstanding any other provision of this title, for
purposes of determining a school district's maximum compressed tax
rate under Section 48.2551 for the 2023-2024 school year, the
commissioner shall exclude the reduction in the district's maximum
compressed tax rate under this section for the preceding school
year from the value of the district's "PYMCR."
(f) This section expires September 1, 2024.
SECTION 2. Section 26.08(b), Tax Code, is amended to read as
follows:
(b) The governing body shall order that the election be held
in the school district on the next uniform election date prescribed
by Section 41.001, Election Code, that occurs after the date of the
election order and that allows sufficient time to comply with the
requirements of other law. At the election, the ballots shall be
prepared to permit voting for or against the proposition:
"Ratifying the ad valorem tax rate of ___ (insert adopted tax rate)
in (name of school district) for the current year, a rate that will
result in an increase of _____ (insert percentage increase in
maintenance and operations tax revenue under the adopted tax rate
as compared to maintenance and operations tax revenue in the
preceding tax year) percent in maintenance and operations tax
revenue for the district for the current year as compared to the
preceding year, which is an additional $____ (insert dollar amount
of increase in maintenance and operations tax revenue under the
adopted tax rate as compared to maintenance and operations tax
revenue in the preceding tax year). If the adopted tax rate is not
ratified, the (name of school district) may not adopt a tax rate
that exceeds ______ (insert the school district's voter-approval
tax rate)."
SECTION 3. In addition to other amounts appropriated to the
Texas Education Agency for the state fiscal year ending August 31,
2023, the amount of $5 billion is appropriated from federal funds
received by the state under the American Rescue Plan Act of 2021
(Pub. L. No. 117-2) to the agency for the state fiscal year ending
August 31, 2023, for use in providing school district property tax
relief by reducing each school district's maximum compressed tax
rate under Section 48.2555, Education Code, as added by this Act.
SECTION 4. (a) Not later than June 1, 2022, the comptroller
of public accounts shall prepare and provide to the legislature an
update of the biennial revenue estimate prepared in accordance with
Section 49a, Article III, Texas Constitution, and provided to the
legislature in January 2021. The update must include the difference
between the estimated balance of general revenue-related funds
available for certification at the end of the state fiscal year
ending August 31, 2023, as determined under:
(1) the update required under this subsection; and
(2) the comptroller's biennial revenue estimate update
provided to the legislature in August 2021.
(b) In addition to other amounts appropriated to the Texas
Education Agency for the state fiscal year ending August 31, 2023,
an amount equal to the lesser of $4 billion or the sum of $2 billion
and 50 percent of the amount, if any, by which the difference
determined under Subsection (a) of this section exceeds $500
million is appropriated from the general revenue fund to the agency
for the state fiscal year ending August 31, 2023, for use in
providing school district property tax relief by reducing each
school district's maximum compressed tax rate under Section
48.2555, Education Code, as added by this Act.
SECTION 5. If any provision of this Act or its application
to any person or circumstance is held invalid, the invalidity does
not affect other provisions or applications of this Act that can be
given effect without the invalid provision or application, and to
this end the provisions of this Act are declared to be severable.
SECTION 6. This Act takes effect on the 91st day after the
last day of the legislative session.