Bill Text: TX HB285 | 2017 | 85th Legislature 1st Special Session | Introduced

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Bill Title: Relating to elimination of certain property taxes for school district maintenance and operations and providing public education funding through an increase in the state sales and use tax rate.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-08-02 - Left pending in committee [HB285 Detail]

Download: Texas-2017-HB285-Introduced.html

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85S10628 CAE/CJC-D
By: Murr H.B. No. 285

A BILL TO BE ENTITLED
AN ACT
relating to elimination of certain property taxes for school
district maintenance and operations and providing public education
funding through an increase in the state sales and use tax rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PUBLIC SCHOOL FINANCE
SECTION 1.01. Section 21.402(a), Education Code, as
effective September 1, 2017, is amended to read as follows:
(a) Except as provided by Subsection (e-1) or (f), a school
district must pay each classroom teacher, full-time librarian,
full-time school counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
42.101(a) or (b) [for a school district with a maintenance and
operations tax rate at least equal to the state maximum compressed
tax rate, as defined by Section 42.101(a)].
SECTION 1.02. Section 29.008(b), Education Code, is amended
to read as follows:
(b) Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal and[,] state[, and local] funds. [The local
share of the total contract cost for each student is that portion of
the local tax effort that exceeds the district's local fund
assignment under Section 42.252, divided by the average daily
attendance in the district. If the contract involves a private
facility, the state share of the total contract cost is that amount
remaining after subtracting the local share. If the contract
involves a public facility, the state share is that amount
remaining after subtracting the local share from the portion of the
contract that involves the costs of instructional and related
services. For purposes of this subsection, "local tax effort"
means the total amount of money generated by taxes imposed for debt
service and maintenance and operation less any amounts paid into a
tax increment fund under Chapter 311, Tax Code.]
SECTION 1.03. Sections 29.203(b) and (g), Education Code,
are amended to read as follows:
(b) A school district is entitled to the allotment provided
by Section 42.157 for each eligible student using a public
education grant. A [If the district has a wealth per student
greater than the guaranteed wealth level but less than the
equalized wealth level, a] school district is entitled under rules
adopted by the commissioner to additional state aid in an amount
equal to the difference between the cost to the district of
providing services to a student using a public education grant and
the sum of the state aid received because of the allotment under
Section 42.157 and money from the available school fund
attributable to the student.
(g) In this section, "guaranteed[:
[(1) "Equalized wealth level" has the meaning assigned
by Section 41.001.
[(2) "Guaranteed] wealth level" means a wealth per
student equal to the dollar amount guaranteed level of state and
local funds per weighted student per cent of tax effort, as provided
by Section 42.302, multiplied by 10,000.
[(3) "Wealth per student" has the meaning assigned by
Section 41.001.]
SECTION 1.04. Section 42.009(b), Education Code, is amended
to read as follows:
(b) In making the determinations regarding funding levels
required by Subsection (a), the commissioner shall:
(1) make adjustments as necessary to reflect changes
in a school district's enrichment [maintenance and operations] tax
rate; and
(2) [for a district required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level, base the determinations on the district's net funding levels
after deducting any amounts required to be expended by the district
to comply with Chapter 41; and
[(3)] determine a district's weighted average daily
attendance in accordance with this chapter as it existed on January
1, 2011.
SECTION 1.05. Section 42.101(a), Education Code, is amended
to read as follows:
(a) 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] $4,765 [or the amount that
results from the following formula:
[A = $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].
SECTION 1.06. Section 42.251(b), Education Code, is amended
to read as follows:
(b) The program shall be financed by:
(1) [ad valorem tax revenue generated by an equalized
uniform school district effort;
[(2)] ad valorem tax revenue generated by local school
district effort as provided by Subchapter F [in excess of the
equalized uniform school district effort];
(2) [(3)] state available school funds distributed in
accordance with law; and
(3) [(4)] state funds appropriated for the purposes of
public school education and allocated to each district in an amount
sufficient to finance the cost of each district's Foundation School
Program not covered by other funds specified in this subsection.
SECTION 1.07. Section 42.2521(a), Education Code, is
amended to read as follows:
(a) For purposes of Chapter [Chapters 41 and] 46 and this
chapter, and to the extent money specifically authorized to be used
under this section is available, the commissioner shall adjust the
taxable value of property in a school district that, due to factors
beyond the control of the board of trustees, experiences a rapid
decline in the tax base used in calculating taxable values in excess
of four percent of the tax base used in the preceding year.
SECTION 1.08. Section 42.2523(a), Education Code, is
amended to read as follows:
(a) For purposes of Chapter [Chapters 41 and] 46 and this
chapter, the commissioner shall adjust the taxable value of
property of a school district all or part of which is located in an
area declared a disaster area by the governor under Chapter 418,
Government Code, as necessary to ensure that the district receives
funding based as soon as possible on property values as affected by
the disaster.
SECTION 1.09. Sections 42.2524(c) and (d), Education Code,
are amended to read as follows:
(c) The commissioner may provide reimbursement under this
section only if funds are available for that purpose from [as
follows]:
(1) [reimbursement for a school district not required
to take action under Chapter 41 may be provided from:
[(A)] amounts appropriated for that purpose,
including amounts appropriated for those districts for that purpose
to the disaster contingency fund established under Section 418.073,
Government Code; or
(2) [(B)] Foundation School Program funds available
for that purpose, based on a determination by the commissioner that
the amount appropriated for the Foundation School Program,
including the facilities component as provided by Chapter 46,
exceeds the amount to which districts are entitled under this
chapter and Chapter 46[; and
[(2) reimbursement for a school district required to
take action under Chapter 41 may be provided from funds described by
Subdivision (1)(B) if funds remain available after fully
reimbursing each school district described by Subdivision (1) for
its disaster remediation costs].
(d) If the amount of money available for purposes of
reimbursing school districts [not required to take action under
Chapter 41] is not sufficient to fully reimburse each district's
disaster remediation costs, the commissioner shall reduce the
amount of assistance provided to each of those districts
proportionately. [If the amount of money available for purposes of
reimbursing school districts required to take action under Chapter
41 is not sufficient to fully reimburse each district's disaster
remediation costs, the commissioner shall reduce the amount of
assistance provided to each of those districts proportionately.]
SECTION 1.10. Sections 42.253(a) and (c), Education Code,
are amended to read as follows:
(a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B and C;
(2) the amount of money to which a school district is
entitled under Subchapter F;
(3) the amount of money allocated to the district from
the available school fund; and
(4) [the amount of each district's tier one local share
under Section 42.252; and
[(5)] the amount of each district's tier two local
share under Section 42.302.
(c) Each school district is entitled to an amount equal to
the difference for that district between the sum of Subsections
(a)(1) and (a)(2) and the sum of Subsections (a)(3) and[,] (a)(4)[,
and (a)(5)].
SECTION 1.11. Section 42.253(h), Education Code, as
effective September 1, 2017, is amended to read as follows:
(h) If the amount appropriated for the Foundation School
Program for the second year of a state fiscal biennium is less than
the amount to which school districts and open-enrollment charter
schools are entitled for that year, the commissioner shall certify
the amount of the difference to the Legislative Budget Board not
later than January 1 of the second year of the state fiscal
biennium. The Legislative Budget Board shall propose to the
legislature that the certified amount be transferred to the
foundation school fund from the economic stabilization fund and
appropriated for the purpose of increases in allocations under this
subsection. If the legislature fails during the regular session to
enact the proposed transfer and appropriation and there are not
funds available under Subsection (j), the commissioner shall adjust
the total amounts due to each school district and open-enrollment
charter school under this chapter [and the total amounts necessary
for each school district to comply with the requirements of Chapter
41] by an amount determined by applying to each district and school
the same percentage adjustment to the total amount of state and
local revenue due to the district or school under this chapter [and
Chapter 41] so that the total amount of the adjustment to all
districts and schools results in an amount equal to the total
adjustment necessary. The following fiscal year,[:
[(1)] a district's or school's entitlement under this
section is increased by an amount equal to the adjustment made under
this subsection[; and
[(2) the amount necessary for a district to comply
with the requirements of Chapter 41 is reduced by an amount
necessary to ensure a district's full recovery of the adjustment
made under this subsection].
SECTION 1.12. Sections 42.2531(a), (b), and (c), Education
Code, are amended to read as follows:
(a) The commissioner may make adjustments to amounts due to
a school district under this chapter or Chapter 46, [or to amounts
necessary for a district to comply with the requirements of Chapter
41,] as provided by this section.
(b) A school district that has a major taxpayer, as
determined by the commissioner, that because of a protest of the
valuation of the taxpayer's property fails to pay all or a portion
of the ad valorem taxes due to the district may apply to the
commissioner to have the district's taxable value of property or ad
valorem tax collections adjusted for purposes of this chapter or
Chapter [41 or] 46. The commissioner may make the adjustment only
to the extent the commissioner determines that making the
adjustment will not:
(1) in the fiscal year in which the adjustment is made,
cause the amount to which school districts are entitled under this
chapter to exceed the amount appropriated for purposes of the
Foundation School Program for that year; and
(2) if the adjustment is made in the first year of a
state fiscal biennium, cause the amount to which school districts
are entitled under this chapter for the second year of the biennium
to exceed the amount appropriated for purposes of the Foundation
School Program for that year.
(c) The commissioner shall recover the benefit of any
adjustment made under this section by making offsetting adjustments
in the school district's taxable value of property or ad valorem tax
collections for purposes of this chapter or Chapter [41 or] 46 on a
final determination of the taxable value of property that was the
basis of the original adjustment, or in the second school year
following the year in which the adjustment is made, whichever is
earlier.
SECTION 1.13. Section 42.257(b), Education Code, is amended
to read as follows:
(b) If the district would have received a greater amount
from the foundation school fund for the applicable school year
using the adjusted value, the commissioner shall add the difference
to subsequent distributions to the district from the foundation
school fund. [An adjustment does not affect the local fund
assignment of any other district.]
SECTION 1.14. Section 42.260(b), Education Code, as
effective September 1, 2017, is amended to read as follows:
(b) The amount of additional funds to which each school
district or participating charter school is entitled due to the
increases in formula funding made by H.B. No. 3343, Acts of the 77th
Legislature, Regular Session, 2001, and any subsequent legislation
amending the provisions amended by that Act that increase formula
funding under [Chapter 41 and] this chapter to school districts and
charter schools is available for purposes of Subsection (c).
SECTION 1.15. Sections 42.302(a), (a-1), (a-2), (b), and
(d), Education Code, are amended to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort [over that required for the district's local fund
assignment] up to the maximum level specified in this subchapter.
The amount of state support, subject only to the maximum amount
under Section 42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is an
amount described by Subsection (a-1) or a greater amount for any
year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158 or 42.160, and 50 percent of the adjustment under Section
42.102, by the basic allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of enrichment [maintenance
and operations] taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521, divided by 100.
(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 of [by which] the district's
enrichment [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) $31.95, for the district's enrichment [maintenance
and operations] tax effort that exceeds the amount of tax effort
described by Subdivision (1).
(a-2) The limitation on district enrichment tax rate
("DTR") under Section 42.303 does not apply to the district's
[maintenance and operations] tax effort described by Subsection
(a-1)(1).
(b) In computing the district enrichment tax rate of a
school district, the total amount of enrichment [maintenance and
operations] taxes collected by the school district does not include
the amount of[:
[(1) the district's local fund assignment under
Section 42.252; or
[(2)] taxes paid into a tax increment fund under
Chapter 311, Tax Code.
(d) For purposes of this section, the total amount of
enrichment [maintenance and operations] taxes collected for an
applicable school year by a school district with alternate tax
dates, as authorized by Section 26.135, Tax Code, is the amount of
enrichment taxes collected on or after January 1 of the year in
which the school year begins and not later than December 31 of the
same year.
SECTION 1.16. Section 42.303, Education Code, is amended to
read as follows:
Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. The
district enrichment tax rate ("DTR") under Section 42.302 may not
exceed $0.17 [the amount] per $100 of valuation [by which the
maximum rate permitted under Section 45.003 exceeds the rate used
to determine the district's local share under Section 42.252, or a
greater amount for any year provided by appropriation].
SECTION 1.17. Sections 44.004(c) and (c-1), Education Code,
are amended to read as follows:
(c) The notice of public meeting to discuss and adopt the
budget and the proposed tax rate may not be smaller than one-quarter
page of a standard-size or a tabloid-size newspaper, and the
headline on the notice must be in 18-point or larger type. Subject
to Subsection (d), the notice must:
(1) contain a statement in the following form:
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
"The (name of school district) will hold a public meeting at
(time, date, year) in (name of room, building, physical location,
city, state). The purpose of this meeting is to discuss the school
district's budget that will determine the tax rate that will be
adopted. Public participation in the discussion is invited." The
statement of the purpose of the meeting must be in bold type. In
reduced type, the notice must state: "The tax rate that is
ultimately adopted at this meeting or at a separate meeting at a
later date may not exceed the proposed rate shown below unless the
district publishes a revised notice containing the same information
and comparisons set out below and holds another public meeting to
discuss the revised notice.";
(2) contain a section entitled "Comparison of Proposed
Budget with Last Year's Budget," which must show the difference,
expressed as a percent increase or decrease, as applicable, in the
amounts budgeted for the preceding fiscal year and the amount
budgeted for the fiscal year that begins in the current tax year for
each of the following:
(A) enrichment [maintenance and operations];
(B) debt service; and
(C) total expenditures;
(3) contain a section entitled "Total Appraised Value
and Total Taxable Value," which must show the total appraised value
and the total taxable value of all property and the total appraised
value and the total taxable value of new property taxable by the
district in the preceding tax year and the current tax year as
calculated under Section 26.04, Tax Code;
(4) contain a statement of the total amount of the
outstanding and unpaid bonded indebtedness of the school district;
(5) contain a section entitled "Comparison of Proposed
Rates with Last Year's Rates," which must:
(A) show in rows the tax rates described by
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
property, for columns entitled "Enrichment," ["Maintenance &
Operations,"] "Interest & Sinking Fund," and "Total," which is the
sum of "Enrichment" ["Maintenance & Operations"] and "Interest &
Sinking Fund":
(i) the school district's "Last Year's
Rate";
(ii) the "Rate to Maintain Same Level of
Enrichment [Maintenance & Operations] Revenue & Pay Debt Service,"
which:
(a) in the case of "Enrichment,"
["Maintenance & Operations,"] is the tax rate that, when applied to
the current taxable value for the district, as certified by the
chief appraiser under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, would impose taxes in an amount that, when added
to state funds to be distributed to the district under Subchapter F,
Chapter 42, would provide the same amount of enrichment funds
[maintenance and operations taxes and state funds distributed under
Chapter 42] per student in average daily attendance for the
applicable school year that was available to the district in the
preceding school year; and
(b) in the case of "Interest & Sinking
Fund," is the tax rate that, when applied to the current taxable
value for the district, as certified by the chief appraiser under
Section 26.01, Tax Code, and as adjusted to reflect changes made by
the chief appraiser as of the time the notice is prepared, and when
multiplied by the district's anticipated collection rate, would
impose taxes in an amount that, when added to state funds to be
distributed to the district under Chapter 46 and any excess taxes
collected to service the district's debt during the preceding tax
year but not used for that purpose during that year, would provide
the amount required to service the district's debt; and
(iii) the "Proposed Rate";
(B) contain fourth and fifth columns aligned with
the columns required by Paragraph (A) that show, for each row
required by Paragraph (A):
(i) the "Local Revenue per Student," which
is computed by multiplying the district's total taxable value of
property, as certified by the chief appraiser for the applicable
school year under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, by the total tax rate, and dividing the product
by the number of students in average daily attendance in the
district for the applicable school year; and
(ii) the "State Revenue per Student," which
is computed by determining the amount of state aid received or to be
received by the district under Chapters 42, 43, and 46 and dividing
that amount by the number of students in average daily attendance in
the district for the applicable school year; and
(C) contain an asterisk after each calculation
for "Interest & Sinking Fund" and a footnote to the section that, in
reduced type, states "The Interest & Sinking Fund tax revenue is
used to pay for bonded indebtedness on construction, equipment, or
both. The bonds, and the tax rate necessary to pay those bonds,
were approved by the voters of this district.";
(6) contain a section entitled "Comparison of Proposed
Levy with Last Year's Levy on Average Residence," which must:
(A) show in rows the information described by
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
entitled "Last Year" and "This Year":
(i) "Average Market Value of Residences,"
determined using the same group of residences for each year;
(ii) "Average Taxable Value of Residences,"
determined after taking into account the limitation on the
appraised value of residences under Section 23.23, Tax Code, and
after subtracting all homestead exemptions applicable in each year,
other than exemptions available only to disabled persons or persons
65 years of age or older or their surviving spouses, and using the
same group of residences for each year;
(iii) "Last Year's Rate Versus Proposed
Rate per $100 Value"; and
(iv) "Taxes Due on Average Residence,"
determined using the same group of residences for each year; and
(B) contain the following information:
"Increase (Decrease) in Taxes" expressed in dollars and cents,
which is computed by subtracting the "Taxes Due on Average
Residence" for the preceding tax year from the "Taxes Due on Average
Residence" for the current tax year;
(7) contain the following statement in bold print:
"Under state law, the dollar amount of school taxes imposed on the
residence of a person 65 years of age or older or of the surviving
spouse of such a person, if the surviving spouse was 55 years of age
or older when the person died, may not be increased above the amount
paid in the first year after the person turned 65, regardless of
changes in tax rate or property value.";
(8) contain the following statement in bold print:
"Notice of Rollback Rate: The highest tax rate the district can
adopt before requiring voter approval at an election is (the school
district rollback rate determined under Section 26.08, Tax Code).
This election will be automatically held if the district adopts a
rate in excess of the rollback rate of (the school district rollback
rate)."; and
(9) contain a section entitled "Fund Balances," which
must include the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding debt
obligation, less estimated funds necessary for the operation of the
district before the receipt of the first payment under Chapter 42 in
the succeeding school year.
(c-1) The notice described by Subsection (c) must state in a
distinct row or on a separate or individual line for each of the
following taxes:
(1) the proposed rate of the school district's
enrichment [maintenance] tax described by Section 45.003, under the
heading "Enrichment [Maintenance] Tax"; and
(2) if the school district has issued ad valorem tax
bonds under Section 45.001, the proposed rate of the tax to pay for
the bonds, under the heading "School Debt Service Tax Approved by
Local Voters."
SECTION 1.18. The heading to Subchapter A, Chapter 45,
Education Code, is amended to read as follows:
SUBCHAPTER A. TAX BONDS AND ENRICHMENT [MAINTENANCE] TAXES
SECTION 1.19. Section 45.002, Education Code, is amended to
read as follows:
Sec. 45.002. ENRICHMENT [MAINTENANCE] TAXES. The governing
board of an independent school district, including the city council
or commission that has jurisdiction over a municipally controlled
independent school district, the governing board of a rural high
school district, and the commissioners court of a county, on behalf
of each common school district under its jurisdiction, may levy,
assess, and collect annual ad valorem taxes for the further
enrichment [maintenance] of public schools in the district, subject
to Section 45.003.
SECTION 1.20. Section 45.003(d), Education Code, is amended
to read as follows:
(d) A proposition submitted to authorize the levy of
enrichment [maintenance] taxes must include the question of whether
the governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the enrichment [further
maintenance] of public schools, at a rate not to exceed the rate
stated in the proposition. For any year, the enrichment
[maintenance] tax rate per $100 of taxable value adopted by the
district may not exceed the rate [equal to the sum] of $0.17 [and
the product of the state compression percentage, as determined
under Section 42.2516, multiplied by $1.50].
SECTION 1.21. Section 45.104(a), Education Code, is amended
to read as follows:
(a) The board of trustees of any school district may pledge
its delinquent taxes levied for maintenance purposes for specific
past[, current, and future] school years or levied for enrichment
purposes for specific past, current, and future school years as
security for a loan, and may evidence any such loan with negotiable
notes, and the delinquent taxes pledged shall be applied against
the principal and interest of the loan. Negotiable notes issued
under this subsection must mature not more than 20 years from their
date.
SECTION 1.22. Section 45.108(a), Education Code, is amended
to read as follows:
(a) Independent or consolidated school districts may borrow
money for the purpose of paying maintenance expenses and may
evidence those loans with negotiable or nonnegotiable notes, except
that the loans may not at any time exceed 75 percent of the previous
year's income. The notes may be payable from and secured by a lien
on and pledge of any available funds of the district, including
proceeds of an enrichment [a maintenance] tax. The term
"maintenance expenses" or "maintenance expenditures" as used in
this section means any lawful expenditure of the school district
other than payment of principal of and interest on bonds. The term
includes expenditures relating to notes issued to refund notes
previously issued under this section if the refunding notes are
coterminous with the refunded obligation. The term also includes
all costs incurred in connection with environmental cleanup and
asbestos cleanup and removal programs implemented by school
districts or in connection with the maintenance, repair,
rehabilitation, or replacement of heating, air conditioning,
water, sanitation, roofing, flooring, electric, or other building
systems of existing school properties. Notes issued pursuant to
this section may be issued to mature in not more than 20 years from
their date. Notes issued for a term longer than one year must be
treated as "debt" as defined in Section 26.012(7), Tax Code.
SECTION 1.23. Section 45.109(c), Education Code, is amended
to read as follows:
(c) The consideration for a contract under this section may
be paid from any source available to the independent school
district. [If voted as provided by this section, the district may
pledge to the payment of the contract an annual maintenance tax in
an amount sufficient, without limitation, to provide all of the
consideration. If voted and pledged, the maintenance tax shall be
assessed, levied, and collected annually in the same manner as
provided by general law applicable to independent school districts
for other maintenance taxes.]
SECTION 1.24. Section 45.156(c), Education Code, is amended
to read as follows:
(c) The consideration payable by the district under a
contract may be paid from any source available to the district. [If
voted, the district may pledge to the payment of the contract an
annual maintenance tax in an amount sufficient, without limitation,
to provide all or part of the consideration. If voted and pledged,
the maintenance tax shall be assessed, levied, and collected
annually in the same manner as provided by general law applicable to
independent school districts for other maintenance taxes. A
maintenance tax may not be pledged to the payment of any contract or
assessed, levied, or collected unless an election is held in the
district, and the maintenance tax for that purpose is favorably
voted by a majority of the qualified voters of the district. The
election order for an election under this subsection must include
the polling place or places and any other matters considered
advisable by the board of trustees.]
SECTION 1.25. Section 45.261(a), Education Code, is amended
to read as follows:
(a) If the commissioner orders payment from the money
appropriated to the Foundation School Program on behalf of a school
district [that is not required to reduce its wealth per student
under Chapter 41], the commissioner shall direct the comptroller to
withhold the amount paid from the first state money payable to the
district. [If the commissioner orders payment from the money
appropriated to the Foundation School Program on behalf of a school
district that is required to reduce its wealth per student under
Chapter 41, the commissioner shall increase amounts due from the
district under that chapter in a total amount equal to the amount of
payments made on behalf of the district under this subchapter.]
Amounts withheld [or received] under this subsection shall be used
for the Foundation School Program.
SECTION 1.26. Section 403.302(a), Government Code, is
amended to read as follows:
(a) The comptroller shall conduct a study using comparable
sales and generally accepted auditing and sampling techniques to
determine the total taxable value of all property in each school
district. The study shall determine the taxable value of all
property and of each category of property in the district and the
productivity value of all land that qualifies for appraisal on the
basis of its productive capacity and for which the owner has applied
for and received a productivity appraisal. [The comptroller shall
make appropriate adjustments in the study to account for actions
taken under Chapter 41, Education Code.]
SECTION 1.27. Section 1579.251(a), Insurance Code, is
amended to read as follows:
(a) The state shall assist employees of participating
school districts and charter schools in the purchase of group
health coverage under this chapter by providing for each covered
employee the amount of $900 each state fiscal year or a greater
amount as provided by the General Appropriations Act. The state
contribution shall be distributed through the school finance
formulas under Chapter [Chapters 41 and] 42, Education Code, and
used by school districts and charter schools as provided by Section
42.260, Education Code.
SECTION 1.28. Section 21.01, Tax Code, is amended to read as
follows:
Sec. 21.01. REAL PROPERTY. Real property is taxable by a
taxing unit if located in the unit on January 1[, except as provided
by Chapter 41, Education Code].
SECTION 1.29. Section 21.02(a), Tax Code, is amended to
read as follows:
(a) Except as provided by Subsection [Subsections (b) and]
(e) and by Sections 21.021, 21.04, and 21.05, tangible personal
property is taxable by a taxing unit if:
(1) it is located in the unit on January 1 for more
than a temporary period;
(2) it normally is located in the unit, even though it
is outside the unit on January 1, if it is outside the unit only
temporarily;
(3) it normally is returned to the unit between uses
elsewhere and is not located in any one place for more than a
temporary period; or
(4) the owner resides (for property not used for
business purposes) or maintains the owner's principal place of
business in this state (for property used for business purposes) in
the unit and the property is taxable in this state but does not have
a taxable situs pursuant to Subdivisions (1) through (3) [of this
subsection].
SECTION 1.30. Section 26.05(b), Tax Code, is amended to
read as follows:
(b) A taxing unit may not impose property taxes in any year
until the governing body has adopted a tax rate for that year, and
the annual tax rate must be set by ordinance, resolution, or order,
depending on the method prescribed by law for adoption of a law by
the governing body. The vote on the ordinance, resolution, or order
setting the tax rate must be separate from the vote adopting the
budget. For a taxing unit other than a school district, the vote on
the ordinance, resolution, or order setting a tax rate that exceeds
the effective tax rate must be a record vote, and at least 60
percent of the members of the governing body must vote in favor of
the ordinance, resolution, or order. For a school district, the
vote on the ordinance, resolution, or order setting a tax rate that
exceeds the sum of the effective [maintenance and operations] tax
rate of the district [as determined under Section 26.08(i)] and the
district's current debt rate must be a record vote, and at least 60
percent of the members of the governing body must vote in favor of
the ordinance, resolution, or order. A motion to adopt an
ordinance, resolution, or order setting a tax rate that exceeds the
effective tax rate must be made in the following form: "I move that
the property tax rate be increased by the adoption of a tax rate of
(specify tax rate), which is effectively a (insert percentage by
which the proposed tax rate exceeds the effective tax rate) percent
increase in the tax rate." If the ordinance, resolution, or order
sets a tax rate that, if applied to the total taxable value, will
impose an amount of taxes to fund maintenance and operation
expenditures of the taxing unit that exceeds the amount of taxes
imposed for that purpose in the preceding year, the taxing unit
must:
(1) include in the ordinance, resolution, or order in
type larger than the type used in any other portion of the document:
(A) the following statement: "THIS TAX RATE WILL
RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
TAX RATE."; and
(B) if the tax rate exceeds the effective
maintenance and operations rate, the following statement: "THE TAX
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE)
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A
$100,000 HOME BY APPROXIMATELY $(Insert amount)."; and
(2) include on the home page of any Internet website
operated by the unit:
(A) the following statement: "(Insert name of
unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE
AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
(B) if the tax rate exceeds the effective
maintenance and operations rate, the following statement: "THE TAX
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE)
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A
$100,000 HOME BY APPROXIMATELY $(Insert amount)."
SECTION 1.31. Section 312.210(b), Tax Code, is amended to
read as follows:
(b) A tax abatement agreement with the owner of real
property or tangible personal property that is located in the
reinvestment zone described by Subsection (a) and in a school
district [that has a wealth per student that does not exceed the
equalized wealth level] must exempt from taxation:
(1) the portion of the value of the property in the
amount specified in the joint agreement among the municipality,
county, and junior college district; and
(2) an amount equal to 10 percent of the maximum
portion of the value of the property that may under Section
312.204(a) be otherwise exempted from taxation.
SECTION 1.32. The following provisions are repealed:
(1) Section 13.054(f), Education Code;
(2) Chapter 41, Education Code;
(3) Sections 42.101(a-1) and (c), Education Code;
(4) Section 42.158(e), Education Code;
(5) Section 42.160(b), Education Code;
(6) Section 42.2516, Education Code, as effective
September 1, 2017;
(7) Sections 42.2518 and 42.252, Education Code;
(8) Section 42.2524(f), Education Code;
(9) Section 42.2528(b), Education Code;
(10) Section 42.262, Education Code;
(11) Section 42.302(f), Education Code;
(12) Section 45.003(f), Education Code;
(13) Section 45.109(d), Education Code;
(14) Section 45.111(b), Education Code;
(15) Sections 21.02(b) and (c), Tax Code;
(16) Section 25.25(k), Tax Code;
(17) Section 26.08(i), Tax Code, as effective
September 1, 2017;
(18) Sections 26.08(n), (o), and (p), Tax Code; and
(19) Section 312.210(c), Tax Code.
ARTICLE 2. STATE SALES AND USE TAX INCREASE FOR PUBLIC EDUCATION
SECTION 2.01. Section 151.051(b), Tax Code, is amended to
read as follows:
(b) The sales tax rate is 12 [6-1/4] percent of the sales
price of the taxable item sold.
SECTION 2.02. Section 151.801, Tax Code, is amended by
amending Subsection (a) and adding Subsection (b-1) to read as
follows:
(a) Except for the amounts allocated under Subsections (b),
(b-1), (c), and (c-2), all proceeds from the collection of the taxes
imposed by this chapter shall be deposited to the credit of the
general revenue fund.
(b-1) Notwithstanding any other provision of this section,
an amount of revenue under this chapter equal to the proceeds, other
than the proceeds allocated under Subsection (b), 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 shall be deposited to the credit of the
foundation school fund.
SECTION 2.03. The changes in law made by this article do not
affect taxes imposed before the effective date of this article, and
the law in effect before that date is continued in effect for
purposes of the liability for and collection of those taxes.
ARTICLE 3. APPLICABILITY; EFFECTIVE DATE
SECTION 3.01. (a) Chapter 42, Education Code, as amended by
this Act, applies beginning with the 2019-2020 school year.
(b) The repeal by this Act of Chapter 41, Education Code,
does not affect the obligations of a school district under that
chapter, as it existed before repeal by this Act, for the 2018-2019
school year.
SECTION 3.02. This Act takes effect January 1, 2019.