| 1 | 1 | | 88S30311 MEW-F |
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| 2 | 2 | | By: Isaac H.B. No. 110 |
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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 state compression percentage and a school |
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| 8 | 8 | | district's maximum compressed tax rate under the public school |
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| 9 | 9 | | finance system. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 48.255(b), Education Code, is amended to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (b) The state compression percentage is the lower of: |
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| 14 | 14 | | (1) 93 percent, or a lower percentage set by |
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| 15 | 15 | | appropriation for a school year; |
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| 16 | 16 | | (2) the percentage determined by the following |
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| 17 | 17 | | formula: |
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| 18 | 18 | | SCP = PYCP X 1.0 [1.025]/(1 + ECPV); or |
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| 19 | 19 | | (3) the percentage determined under this section for |
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| 20 | 20 | | the preceding school year. |
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| 21 | 21 | | SECTION 2. Section 48.2551(b), Education Code, is amended |
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| 22 | 22 | | to read as follows: |
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| 23 | 23 | | (b) A [Except as provided by Subsection (c), a] district's |
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| 24 | 24 | | maximum compressed rate ("MCR") is the lesser of: |
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| 25 | 25 | | (1) the rate determined by the following [applicable] |
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| 26 | 26 | | formula: |
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| 27 | 27 | | [(A) if "DPV" exceeds "PYDPV" by an amount equal |
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| 28 | 28 | | to or greater than 2.5 percent:] |
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| 29 | 29 | | MCR = [(1.025]((PYDPV+E) X PYMCR)[)]/DPV; or |
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| 30 | 30 | | [(B) if Paragraph (A) does not apply: |
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| 31 | 31 | | [MCR = PYMCR; or] |
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| 32 | 32 | | (2) the product of the state compression percentage, |
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| 33 | 33 | | as determined under Section 48.255, for the current tax year, |
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| 34 | 34 | | multiplied by $1.00. |
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| 35 | 35 | | SECTION 3. (a) This section takes effect only if the |
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| 36 | 36 | | constitutional amendment proposed by H.J.R. 2, 88th Legislature, |
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| 37 | 37 | | 2nd Called Session, 2023, is approved by the voters. |
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| 38 | 38 | | (b) Section 48.2555(a), Education Code, as effective on |
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| 39 | 39 | | approval by the voters of H.J.R. 2, 88th Legislature, 2nd Called |
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| 40 | 40 | | Session, 2023, is amended to read as follows: |
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| 41 | 41 | | (a) Notwithstanding any other provision of this title or |
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| 42 | 42 | | Chapter 26, Tax Code, for the 2023-2024 school year, the |
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| 43 | 43 | | commissioner shall calculate the value of a school district's |
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| 44 | 44 | | maximum compressed tax rate by determining the district's maximum |
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| 45 | 45 | | compressed rate under Section 48.2551 [or 48.2552(b), if |
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| 46 | 46 | | applicable,] and reducing the tax rate determined under the |
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| 47 | 47 | | applicable section by $0.107. |
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| 48 | 48 | | SECTION 4. Sections 48.2551(c) and 48.2552, Education Code, |
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| 49 | 49 | | are repealed. |
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| 50 | 50 | | SECTION 5. Except as otherwise provided by this Act, this |
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| 51 | 51 | | Act takes effect September 1, 2024. |
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