Bill Text: TX HB1077 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to public school finance, supporting public education funding through an increase in the state sales and use tax rate, and requiring a reduction in school district maintenance and operation ad valorem taxes; making an appropriation; increasing the rate of a tax.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-02-26 - Referred to Ways & Means [HB1077 Detail]

Download: Texas-2019-HB1077-Introduced.html
  86R3735 GCB/CJC-F
 
  By: White H.B. No. 1077
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to public school finance, supporting public education
  funding through an increase in the state sales and use tax rate, and
  requiring a reduction in school district maintenance and operation
  ad valorem taxes; making an appropriation; increasing the rate of a
  tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Effective September 1, 2020, Section 41.002(a),
  Education Code, is amended to read as follows:
         (a)  A school district may not have a wealth per student that
  exceeds:
               (1)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to a district with maintenance and operations tax revenue
  per cent of tax effort equal to the maximum amount provided per cent
  under Section 42.101(a) or (b), for the district's maintenance and
  operations tax effort equal to or less than the rate equal to the
  sum of the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year
  and any additional tax effort included in calculating the
  district's compressed tax rate under Section 42.101(a-1);
               (2)   the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to the Austin Independent School District, as determined
  by the commissioner in cooperation with the Legislative Budget
  Board, for the first six cents by which the district's maintenance
  and operations tax rate exceeds the rate equal to the sum of the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by the maintenance and operations tax
  rate adopted by the district for the 2005 tax year and any
  additional tax effort included in calculating the district's
  compressed tax rate under Section 42.101(a-1), subject to Section
  41.093(b-1); or
               (3)  the wealth per student that yields the guaranteed
  level of state and local funds per weighted student in average daily
  attendance per cent of tax effort as provided by Section
  42.302(a-1)(2) [$319,500], for the district's maintenance and
  operations tax effort that exceeds the amount of tax effort
  described by Subdivision (2).
         SECTION 2.  Effective September 1, 2020, Section 42.101,
  Education Code, is amended by amending Subsection (a) and adding
  Subsections (a-3) and (a-4) to read as follows:
         (a)  Except as provided by Subsection (a-3), for [For] each
  student in average daily attendance, not including the time
  students spend each day in special education programs in an
  instructional arrangement other than mainstream or career and
  technology education programs, for which an additional allotment is
  made under Subchapter C, a district is entitled to an allotment
  equal to the lesser of $5,140 [$4,765] or the amount that results
  from the following formula:
  A = $5,140 [$4,765] X (DCR/MCR)
  where:
         "A" is the allotment to which a district is entitled;
         "DCR" is the district's compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by the maintenance and operations tax
  rate adopted by the district for the 2005 tax year; and
         "MCR" is the state maximum compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by $1.50.
         (a-3)  Beginning with the 2020-2021 school year, the
  commissioner shall recompute the amount of the basic allotment
  under Subsection (a) to the maximum amount possible using the funds
  appropriated to the foundation school fund under Section 151.803,
  Tax Code, after the additional costs under Sections 41.002(a)(3)
  and 42.302, as amended by __.B. ___, Acts of the 86th Legislature,
  Regular Session, 2019, are deducted, including the required
  reduction in the calculation of compressed tax rates under
  Subsection (a-4).
         (a-4)  Beginning with the 2020-2021 school year, the
  commissioner shall recompute the calculation of each district's
  maximum compressed tax rate under Subsections (a) and (a-1) and the
  district's tax rate under Section 42.252 to be a rate that would
  entitle the district to an amount of state and local funds per
  weighted student in average daily attendance in the current year,
  using the basic allotment under Subsection (a), equal to the amount
  of state and local funds to which the district would have been
  entitled under Chapter 41 and this chapter for the current school
  year if the guaranteed level under Subsection (a) had remained at
  $5,140.
         SECTION 3.  Effective September 1, 2020, Section 42.302,
  Education Code, is amended by amending Subsection (a-1) and adding
  Subsection (a-3) to read as follows:
         (a-1)  For purposes of Subsection (a), the dollar amount
  guaranteed level of state and local funds per weighted student per
  cent of tax effort ("GL") for a school district is:
               (1)  the greater of the amount of district tax revenue
  per weighted student per cent of tax effort that would be available
  to the Austin Independent School District, as determined by the
  commissioner in cooperation with the Legislative Budget Board, if
  the reduction of the limitation on tax increases as provided by
  Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
  amount of district tax revenue per weighted student per cent of tax
  effort used for purposes of this subdivision in the preceding
  school year, for the first six cents by which the district's
  maintenance and operations tax rate exceeds the rate equal to the
  sum of the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year
  and any additional tax effort included in calculating the
  district's compressed tax rate under Section 42.101(a-1); and
               (2)  the quotient of the maximum basic allotment
  allowed under Section 42.101(a) or (b) divided by 100 [$31.95], for
  the district's maintenance and operations tax effort that exceeds
  the amount of tax effort described by Subdivision (1).
         (a-3)  For the 2020-2021 school year, the commissioner shall
  recompute the calculation of "DTR" under Subsection (a) for each
  school district to be a rate that would entitle the district to an
  amount of state and local funds per weighted student in average
  daily attendance in the current year, using the guaranteed level of
  state and local funds per cent of tax effort under Subsection
  (a-1)(2), equal to the amount of state and local funds to which the
  district would have been entitled under this chapter for the
  current school year if the guaranteed level under Subsection
  (a-1)(2) had remained at $31.95.
         SECTION 4.  Effective September 1, 2020, Section 45.003,
  Education Code, is amended by adding Subsection (g) to read as
  follows:
         (g)  Notwithstanding any other law, the maximum maintenance
  tax rate that may be adopted under this section is reduced by the
  average reduction in the tax rate under Section 42.252 resulting
  from the increase in revenue provided from the funds appropriated
  to the foundation school fund under Section 151.803, Tax Code.
         SECTION 5.  Section 151.051(b), Tax Code, is amended to read
  as follows:
         (b)  The sales tax rate is 7.25 [6-1/4] percent of the sales
  price of the taxable item sold.
         SECTION 6.  Subchapter M, Chapter 151, Tax Code, is amended
  by adding Section 151.803 to read as follows:
         Sec. 151.803.  ALLOCATION OF CERTAIN REVENUE TO SCHOOL
  DISTRICT PROPERTY TAX REDUCTION. Notwithstanding Section 151.801,
  the comptroller shall deposit an amount of revenue equal to the
  proceeds derived from the collection of taxes imposed by this
  chapter attributable to the portion of the tax rate in excess of
  6.25 percent of the sales price of the taxable item sold to the
  credit of an account in the foundation school fund. Money credited
  to the account may be appropriated only to the Texas Education
  Agency for use by the commissioner of education to provide property
  tax relief by increasing the basic allotment, equalized wealth
  level, and guaranteed level under Chapters 41 and 42, Education
  Code, and requiring the compression of property tax rates.
         SECTION 7.  A school district shall use the revenues derived
  from the increase in the equalized wealth level in Section 41.002,
  Education Code, as amended by this Act, the basic allotment under
  Section 42.101(a-3), Education Code, as added by this Act, and the
  guaranteed level in Section 42.302, Education Code, as amended by
  this Act, to reduce the district's tax rate for maintenance and
  operations for the 2020-2021 and 2021-2022 school years. The
  commissioner shall adopt rules regarding the operation and
  enforcement of this section.
         SECTION 8.  For the state fiscal year beginning September 1,
  2020, all money credited to the account created under Section
  151.803, Tax Code, as added by this Act, preceding or during that
  year is appropriated from that account to the Texas Education
  Agency to be used by the commissioner of education to increase the
  basic allotment, equalized wealth level, and guaranteed level under
  Chapters 41 and 42, Education Code, and require the compression of
  property tax rates.
         SECTION 9.  The change in law made by this Act does not
  affect taxes imposed before the effective date of this Act, and the
  law in effect before that date is continued in effect for purposes
  of the liability for and collection of those taxes.
         SECTION 10.  Except as otherwise provided by this Act, this
  Act takes effect January 1, 2020.
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