HB5502 - 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.

      By: Vasut H.B. No. 5502       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(18), Tax Code, is amended to read   as follows:                (18)  "No-new-revenue maintenance and operations rate"   means a rate expressed in dollars per $100 of taxable value   calculated as follows:                      (A)  for a taxing unit other than a school   district, the rate calculated according to the following formula:          NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE = (LAST   YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST YEAR'S JUNIOR COLLEGE   LEVY) / (CURRENT TOTAL VALUE [ - NEW PROPERTY VALUE ])          ; or                      (B)  for a school district, the rate calculated as   provided by Section 44.004(c)(5)(A)(ii)(a), Education Code.          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), (c), (g), and (h), 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.          (g)  If the rate of the additional sales and use tax is   increased, the designated officer or employee shall make two   projections, in the manner provided by Subsection (d), of the   revenue generated by the additional sales and use tax in the   following year.  The first projection must take into account the   increase and the second projection must not take into account the   increase.  The designated officer or employee shall then subtract   the amount of the result of the second projection from the amount of   the result of the first projection to determine the revenue   generated as a result of the increase in the additional sales and   use tax.  In the first year in which an additional sales and use tax   is increased, the no-new-revenue tax rate for the taxing unit is the   no-new-revenue tax rate before the increase minus a number the   numerator of which is the revenue generated as a result of the   increase in the additional sales and use tax, as determined under   this subsection, and the denominator of which is the current total   value [ minus the new property value ].          (h)  If the rate of the additional sales and use tax is   decreased, the designated officer or employee shall make two   projections, in the manner provided by Subsection (d), of the   revenue generated by the additional sales and use tax in the   following year.  The first projection must take into account the   decrease and the second projection must not take into account the   decrease.  The designated officer or employee shall then subtract   the amount of the result of the first projection from the amount of   the result of the second projection to determine the revenue lost as   a result of the decrease in the additional sales and use tax.  In   the first year in which an additional sales and use tax is   decreased, the no-new-revenue tax rate for the taxing unit is the   no-new-revenue tax rate before the decrease plus a number the   numerator of which is the revenue lost as a result of the decrease   in the additional sales and use tax, as determined under this   subsection, and the denominator of which is the current total value   [ minus the new property value ].          SECTION 7.  Sections 26.044(a) and (b), Tax Code, are   amended to read as follows:          (a)  The first time that a county adopts a tax rate after   September 1, 1991, in which the state criminal justice mandate   applies to the county, the no-new-revenue maintenance and operation   rate for the county is increased by the rate calculated according to   the following formula:                (State Criminal Justice Mandate) / (Current Total   Value [ - New Property Value ])          (b)  In the second and subsequent years that a county adopts   a tax rate, if the amount spent by the county for the state criminal   justice mandate increased over the previous year, the   no-new-revenue maintenance and opera [Text truncated for display. 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