Bill Text: TX SB112 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to public school finance and certain limitations on the ad valorem tax rate of a school district.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2011-01-31 - Referred to Education [SB112 Detail]

Download: Texas-2011-SB112-Introduced.html

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82R1383 SMH/KKA-D
By: Davis S.B. No. 112

A BILL TO BE ENTITLED
AN ACT
relating to public school finance and certain limitations on the ad
valorem tax rate of a school district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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, for the district's maintenance and operations
tax effort equal to or less than the rate equal to 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;
(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 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, subject to Section 41.093(b-1);
or
(3) the wealth per student that generates the greater
of 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, or the amount of district tax revenue per
weighted student used for purposes of this subdivision in the
preceding school year [$319,500], for the district's maintenance
and operations tax effort that exceeds the first six cents by which
the district's maintenance and operations tax effort exceeds the
rate equal to 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.
SECTION 2. Section 41.093(b-1), Education Code, is amended
to read as follows:
(b-1) If the guaranteed level of state and local funds per
weighted student per cent of tax effort under Section 42.302(a-1)
[42.302(a-1)(1)] for which state funds are appropriated for a
school year is an amount at least equal to the amount of revenue per
weighted student per cent of tax effort available to the Austin
Independent School District, as determined by the commissioner in
cooperation with the Legislative Budget Board, the commissioner, in
computing the amounts described by Subsections (a)(1) and (2) and
determining the cost of an attendance credit, shall exclude
maintenance and operations tax revenue resulting from the first six
cents by which a district's maintenance and operations tax rate
exceeds the rate equal to 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.
SECTION 3. Section 42.2522(e), Education Code, is amended
to read as follows:
(e) The commissioner shall notify school districts as soon
as practicable as to the availability of funds under this section.
[For purposes of computing a rollback tax rate under Section 26.08,
Tax Code, a district shall adjust the district's tax rate limit to
reflect assistance received under this section.]
SECTION 4. Sections 42.302(a-1) and (a-2), Education Code,
are amended to read as follows:
(a-1) In this section, "wealth per student" has the meaning
assigned by Section 41.001. 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 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
[(2) $31.95, for the district's 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 first six cents
by which the district's maintenance and operations tax rate exceeds
the rate equal to 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 [effort described by Subsection (a-1)(1)].
SECTION 5. Sections 44.004(c) and (i), 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) 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 "Maintenance & Operations,"
"Interest & Sinking Fund," and "Total," which is the sum of
"Maintenance & Operations" and "Interest & Sinking Fund":
(i) the school district's "Last Year's
Rate";
(ii) the "Rate to Maintain Same Level of
Maintenance & Operations Revenue & Pay Debt Service," which:
(a) in the case of "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 Chapter 42, would provide the
same amount of 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 Maximum Maintenance Tax [Rollback] Rate: The highest
maintenance tax rate the district can adopt before requiring voter
approval at an election is (the maximum maintenance tax rate the
district may adopt before requiring voter approval at an election
under Section 45.003 [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.
(i) A school district that uses a certified estimate, as
authorized by Subsection (h), may adopt a budget at the public
meeting designated in the notice prepared using the estimate, but
the district may not adopt a tax rate before the district receives
the certified appraisal roll for the district required by Section
26.01(a), Tax Code. After receipt of the certified appraisal roll,
the district must publish a revised notice and hold another public
meeting before the district may adopt a tax rate that exceeds[:
[(1)] the rate proposed in the notice prepared using
the estimate[; or
[(2) the district's rollback rate determined under
Section 26.08, Tax Code, using the certified appraisal roll].
SECTION 6. Section 45.003, Education Code, is amended by
adding Subsection (g) to read as follows:
(g) Notwithstanding any other law, a district may not adopt
a maintenance tax rate for the current tax year that exceeds the sum
of:
(1) the district's maintenance tax rate for the
preceding tax year; and
(2) the rate of four cents per $100 of taxable value in
the district.
SECTION 7. Section 45.261(e), Education Code, is amended to
read as follows:
(e) Any part of a school district's tax rate attributable to
producing revenue for purposes of Subsection (c)(1) is considered
part of the district's[:
[(1) current debt rate for purposes of computing a
rollback tax rate under Section 26.08, Tax Code; and
[(2)] interest and sinking fund tax rate.
SECTION 8. Section 3.005(a), Election Code, is amended to
read as follows:
(a) Except as provided by Subsection [Subsections] (c) [and
(d)], an election ordered by an authority of a political
subdivision shall be ordered not later than the 62nd day before
election day.
SECTION 9. Section 4.008(a), Election Code, is amended to
read as follows:
(a) The [Except as provided by Subsection (b), the]
governing body of a political subdivision, other than a county,
that orders an election shall deliver notice of the election to the
county clerk and voter registrar of each county in which the
political subdivision is located not later than the 60th day before
election day.
SECTION 10. Section 26.05(g), Tax Code, is amended to read
as follows:
(g) Notwithstanding Subsection (a), the governing body of a
school district that elects to adopt a tax rate before the adoption
of a budget for the fiscal year that begins in the current tax year
may adopt a tax rate for the current tax year before receipt of the
certified appraisal roll for the school district if the chief
appraiser of the appraisal district in which the school district
participates has certified to the assessor for the school district
an estimate of the taxable value of property in the school district
as provided by Section 26.01(e). If a school district adopts a tax
rate under this subsection, the effective tax rate [and the
rollback tax rate] of the district shall be calculated based on the
certified estimate of taxable value.
SECTION 11. (a) Sections 3.005(d) and 4.008(b), Election
Code, are repealed.
(b) Section 26.08, Tax Code, is repealed.
SECTION 12. (a) The changes in law made by Sections 3, 5, 6,
7, 8, 9, 10, and 11 of this Act apply to the ad valorem tax rate of a
school district beginning with the 2011 tax year, except as
provided by Subsection (b) of this section.
(b) If the governing body of a school district adopted an ad
valorem tax rate for the school district for the 2011 tax year
before the effective date of Sections 3, 5, 6, 7, 8, 9, 10, and 11 of
this Act, the changes in law made by Sections 3, 5, 6, 7, 8, 9, 10,
and 11 of this Act apply to the ad valorem tax rate of that school
district beginning with the 2012 tax year, and the law in effect
when the tax rate was adopted applies to the 2011 tax year with
respect to that school district.
SECTION 13. (a) Except as provided by Subsection (b) of
this section:
(1) this Act takes effect immediately if it receives a
vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution; and
(2) if this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2011.
(b) Sections 1, 2, and 4 of this Act take effect September 1,
2011.