HB250 - Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.

  89R1306 RDS-D     By: Harrison H.B. No. 250       A BILL TO BE ENTITLED   AN ACT   relating to the calculation of certain ad valorem tax rates of a   taxing unit and the manner in which a proposed ad valorem tax rate   that exceeds the voter-approval tax rate is approved; making   conforming changes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 48.202(f), Education Code, is amended to   read as follows:          (f)  For a school year in which the dollar amount guaranteed   level of state and local funds per weighted student per cent of tax   effort ("GL") under Subsection (a-1)(2) exceeds the dollar amount   guaranteed level of state and local funds per weighted student per   cent of tax effort ("GL") under Subsection (a-1)(2) for the   preceding school year, a school district shall reduce the   district's tax rate under Section 45.0032(b)(2) for the tax year   that corresponds to that school year to a rate that results in the   amount of state and local funds per weighted student per cent of tax   effort available to the district at the dollar amount guaranteed   level for the preceding school year. A school district is not   entitled to the amount equal to the increase of revenue described by   this subsection for the school year for which the district must   reduce the district's tax rate. For [ Unless Section 26.042(e), Tax   Code, applies to the district, for ] a tax year in which a district   must reduce the district's tax rate under this subsection, the   district may not increase the district's maintenance and operations   tax rate to a rate that exceeds the maximum maintenance and   operations tax rate permitted under Section 45.003(d) or (f), as   applicable, minus the reduction of tax effort required under this   subsection. This subsection does not apply if the amount of state   funds appropriated for a school year specifically excludes the   amount necessary to provide the dollar amount guaranteed level of   state and local funds per weighted student per cent of tax effort   under Subsection (a-1)(2).          SECTION 2.  Section 3828.157, Special District Local Laws   Code, is amended to read as follows:          Sec. 3828.157.  INAPPLICABILITY OF CERTAIN TAX CODE   PROVISIONS.  Sections 26.04, [ 26.042, ] 26.05, and 26.07, [ and   26.075, ] Tax Code, do not apply to a tax imposed under Section   3828.153 or 3828.156.          SECTION 3.  Section 8876.152(a), Special District Local Laws   Code, is amended to read as follows:          (a)  Sections 26.04, [ 26.042, ] 26.05, 26.06, 26.061, and   26.07, [ and 26.075, ] Tax Code, do not apply to a tax imposed by the   district.          SECTION 4.  Section 26.012(3), Tax Code, is amended to read   as follows:                (3)  "Current debt service " means the minimum dollar   amount required to be expended for debt service for the current   year.          SECTION 5.  Section 26.04(c), Tax Code, is amended to read as   follows:          (c)  After the assessor for the taxing unit submits the   appraisal roll for the taxing unit to the governing body of the   taxing unit as required by Subsection (b), an officer or employee   designated by the governing body shall calculate the no-new-revenue   tax rate and the voter-approval tax rate for the taxing unit, where:                (1)  "No-new-revenue tax rate" means a rate expressed   in dollars per $100 of taxable value calculated according to the   following formula:          NO-NEW-REVENUE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY   LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)          ; and                (2)  "Voter-approval tax rate" means a rate expressed   in dollars per $100 of taxable value calculated according to the   following [ applicable ] formula:                      [ (A) for a special taxing unit: ]          VOTER-APPROVAL TAX RATE = [ ( ]NO-NEW-REVENUE MAINTENANCE AND   OPERATIONS RATE [ x 1.08) ] + CURRENT DEBT RATE          [ ; or                      [ (B) for a taxing unit other than a special taxing   unit:          [ VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND   OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT   RATE) ]          SECTION 6.  Sections 26.041(a), (b), and (c), Tax Code, are   amended to read as follows:          (a)  In the first year in which an additional sales and use   tax is required to be collected, the no-new-revenue tax rate and   voter-approval tax rate for the taxing unit are calculated   according to the following formulas:                NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY -   LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW   PROPERTY VALUE)] - SALES TAX GAIN RATE   and                VOTER-APPROVAL TAX RATE [ FOR SPECIAL TAXING UNIT ]   = [ ( ]NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE [ x   1.08) ] + [ ( ]CURRENT DEBT RATE - SALES TAX GAIN RATE[ )   [ or                [ VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER   THAN SPECIAL TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE   AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE +   UNUSED INCREMENT RATE - SALES TAX GAIN RATE) ]   where "sales tax gain rate" means a number expressed in dollars per   $100 of taxable value, calculated by dividing the revenue that will   be generated by the additional sales and use tax in the following   year as calculated under Subsection (d) by the current total value.          (b)  Except as provided by Subsections (a) and (c), in a year   in which a taxing unit imposes an additional sales and use tax, the   voter-approval tax rate for the taxing unit is calculated according   to the following formula, regardless of whether the taxing unit   levied a property tax in the preceding year:                VOTER-APPROVAL TAX RATE [ FOR SPECIAL TAXING UNIT ]   = [[ ( ]LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE   [ x 1.08) ] / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)]   + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)   [ or                [ VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER   THAN SPECIAL TAXING UNIT = [(LAST YEAR'S MAINTENANCE   AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE   - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED   INCREMENT RATE - SALES TAX REVENUE RATE) ]   where "last year's maintenance and operations expense" means the   amount spent for maintenance and operations from property tax and   additional sales and use tax revenues in the preceding year, and   "sales tax revenue rate" means a number expressed in dollars per   $100 of taxable value, calculated by dividing the revenue that will   be generated by the additional sales and use tax in the current year   as calculated under Subsection (d) by the current total value.          (c)  In a year in which a taxing unit that has been imposing   an additional sales and use tax ceases to impose an additional sales   and use tax, the no-new-revenue tax rate and voter-approval tax   rate for the taxing unit are calculated according to the following   formulas:                NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY -   LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW   PROPERTY VALUE)] + SALES TAX LOSS RATE   and                VOTER-APPROVAL TAX RATE [ FOR SPECIAL TAXING UNIT ]   = [[ ( ]LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE   [ x 1.08) ] / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)]   + CURRENT DEBT RATE   [ or                [ VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER   THAN SPECIAL TAXING UNIT = [(LAST YEAR'S MAINTENANCE   AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE   - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED   INCREMENT RATE) ]   where "sales tax loss rate" means a number expressed in dollars per   $100 of taxable value, calculated by dividing the amount of sales   and use tax revenue generated in the last four quarters for which   the information is available by the current total value and "last   year's maintenance and operations expense" means the amount spent   for maintenance and operations from property tax and additional   sales and use tax revenues in the preceding year.          SECTION 7.  Section 26.07(b), Tax Code, is amended to read as   follows:          (b)  If the governing body of a [ special ] taxing unit [ or a   municipality with a population of 30,000 or more ] adopts a tax rate   that exceeds the taxing unit's voter-approval tax rate, [ or the   governing body of a taxing unit other than a special taxing unit or   a municipality with a population of less than 30,000 regardless of   whether it is a special taxing unit adopts a tax rate that exceeds   the greater of the taxing unit's voter-approval tax rate or de   minimis rate, ] the registered voters of the taxing unit at an   election held for that purpose must determine whether to approve   the adopted tax rate.          SECTION 8.  Sections 31.12(a) and (b), Tax Code, are amended   to read as follows:          (a)  If a refund of a tax provided by Section 11.431(b),   26.07(g), [ 26.075(k), ] 26.15(f), 31.11, 31.111, or 31.112 is paid   on or before the 60th day after the date the liability for the   refund arises, no interest is due on the amount refunded. If not   paid on or before that 60th day, the amount of the tax to be refunded   accrues interest at a rate of one percent for each month or part of a   month that the refund is unpaid, beginning with the date on which   the liability for the refund arises.          (b)  For purposes of this section, liability for a refund   arises:                (1)  if the refund is required by Section 11.431(b), on   the date the chief appraiser notifies the collector for the taxing   unit of the approval of the late homestead exemption;                (2)  if the refund is required by Section 26.07(g) [ or   26.075(k) ], on the date the results of the election to approve [ or   reduce ] the tax rate[ , as applicable, ] are certified;                (3)  if the refund is required by Section 26.15(f):                      (A)  for a correction to the tax roll made under   Section 26.15(b), on the date the change in the tax roll is   certified to the assessor for the taxing unit under Section 25.25;   or                      (B)  for a correction to the tax roll made under   Section 26.15(c), on the date the change in the tax roll is ordered   by the governing body of the taxing unit;                (4)  if the refund is required by Section 31.11, on the   date the auditor for the taxing unit determines that the payment was   erroneous or excessive or, if the amount of the refund exceeds the   applicable amount specified by Section 31.11(a), on the date the   governing body of the taxing unit approves the refund;                (5)  if the refund is required by Section 31.111, on the   date the collector for the taxing unit determines that the payment   was erroneous; or                (6)  if the refund is required by Section 31.112, on the   date required by Section 31.112(d) or (e), as applicable.          SECTION 9.  Section 33.08(b), Tax Code, is amended to read as   follows:          (b)  The governing body of the taxing unit or appraisal   district, in the manner required by law for official action, may   pr [Text truncated for display. 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