Bill Text: TX SB1692 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the establishment of a limit on the maximum ad valorem tax rate of a county or municipality for a tax year based on inflation and the rate of population growth.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-23 - Referred to Finance [SB1692 Detail]
Download: Texas-2015-SB1692-Introduced.html
84R7888 SMH-D | ||
By: Bettencourt | S.B. No. 1692 |
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relating to the establishment of a limit on the maximum ad valorem | ||
tax rate of a county or municipality for a tax year based on | ||
inflation and the rate of population growth. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 26, Tax Code, is amended by adding | ||
Section 26.046 to read as follows: | ||
Sec. 26.046. ANNUAL LIMIT ON TAX RATE OF COUNTY OR | ||
MUNICIPALITY. (a) In this section: | ||
(1) "Consumer price index" means the index that the | ||
comptroller considers to most accurately report changes in the | ||
purchasing power of the dollar for consumers in this state. | ||
(2) "Inflation rate" means the amount, expressed in | ||
decimal form rounded to the nearest thousandth, computed by | ||
determining the percentage change in the consumer price index for | ||
the most recent 12-month period for which the index can be | ||
determined as compared to the consumer price index for the 12-month | ||
period preceding that period. | ||
(3) "Population growth rate" means the annual rate of | ||
growth of a county's or municipality's population, as applicable, | ||
as determined in accordance with the most recent annual population | ||
estimates provided by the state demographer under Section 468.004, | ||
Government Code, expressed in decimal form rounded to the nearest | ||
thousandth. | ||
(b) By July 1 or as soon thereafter as practicable, the | ||
comptroller shall determine the rate of inflation in this state and | ||
publish that rate in the Texas Register. | ||
(c) The governing body of a county or municipality may not | ||
adopt a tax rate for a tax year that exceeds the rate, expressed in | ||
dollars per $100 of taxable value, computed by: | ||
(1) multiplying the total amount of funds received by | ||
the county or municipality from all sources during the preceding | ||
tax year by the sum of 1 and the population growth rate; | ||
(2) multiplying the amount computed under Subdivision | ||
(1) by the sum of 1 and the inflation rate; | ||
(3) subtracting from the amount computed under | ||
Subdivision (2) the amount of revenue estimated to be received by | ||
the county or municipality in the current tax year from all sources | ||
other than ad valorem taxes; and | ||
(4) dividing the amount computed under Subdivision (3) | ||
by the current total value for the county or municipality. | ||
(d) By August 7 or as soon thereafter as practicable, an | ||
officer or employee designated by the governing body of a county or | ||
municipality shall calculate the rate described by Subsection (c) | ||
and submit the rate to the governing body of the county or | ||
municipality. | ||
(e) Notwithstanding Subsection (c), the governing body of a | ||
county or municipality may adopt a tax rate for a tax year that | ||
exceeds the rate computed under that subsection if: | ||
(1) before the adoption of a tax rate for that tax year | ||
the county or municipality pledged the taxes for payment of a debt; | ||
and | ||
(2) adopting a rate less than or equal to the rate | ||
computed under that subsection would impair the obligation of the | ||
contract creating the debt. | ||
SECTION 2. (a) The change in law made by this Act applies to | ||
the ad valorem tax rate of a county or municipality beginning with | ||
the 2015 tax year, except as provided by Subsection (b) of this | ||
section. | ||
(b) If the governing body of a county or municipality | ||
adopted an ad valorem tax rate for the county or municipality for | ||
the 2015 tax year before the effective date of this Act, the change | ||
in law made by this Act applies to the ad valorem tax rate of that | ||
county or municipality beginning with the 2016 tax year, and the law | ||
in effect when the tax rate was adopted applies to the 2015 tax year | ||
with respect to that county or municipality. | ||
SECTION 3. 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. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2015. |