SB2775 - 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.

  89R13978 RDS-D     By: Hinojosa of Nueces S.B. No. 2775       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, 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, 26.07,   and 26.075, Tax Code, do not apply to a tax imposed by the district.          SECTION 4.  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 5.  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 6.  Section 26.063(a), Tax Code, is amended to read   as follows:          (a)  This section applies only to a taxing unit:                (1)   other than  [ that is:                      [ (A)     a taxing unit other than a special taxing   unit; or                      [ (B) ]  a municipality with a population of [ less   than ] 30,000 or more  [ , regardless of whether it is a special taxing   unit ];                (2)  that is required to provide notice under Section   26.06(b-1) or (b-3); and                (3)  for which the de minimis rate exceeds the   voter-approval tax rate.          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 or more   [ 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 26.075(a) and (b), Tax Code, are   amended to read as follows:          (a)  This section applies only to a taxing unit other than:                (1)  [ a special taxing unit;                [ (2) ]  a school district; or                 (2)  [ (3) ]  a municipality with a population of 30,000   or more.          (b)  This section applies to a taxing unit only in a tax year   in which the taxing unit's:                (1)  de minimis rate exceeds the taxing unit's   voter-approval tax rate; and                (2)  adopted tax rate is:                      (A)  equal to or lower than the taxing unit's de   minimis rate; and                      (B)  greater than the [ greater of the ] taxing   unit's[ :                            [ (i) ]  voter-approval tax rate [ calculated   as if the taxing unit were a special taxing unit; or                            [ (ii)  voter-approval tax rate ].          SECTION 9.  Section 49.107(g), Water Code, is amended to   read as follows:          (g)  Sections 26.04, [ 26.042, ] 26.05, 26.061, 26.07, and   26.075, Tax Code, do not apply to a tax levied and collected under   this section or an ad valorem tax levied and collected for the   payment of the interest on and principal of bonds issued by a   district.          SECTION 10.  Section 49.108(f), Water Code, is amended to   re [Text truncated for display. 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