Bill Text: TX HB393 | 2017 | 85th Legislature 1st Special Session | Introduced
Bill Title: Relating to the calculation of the ad valorem rollback tax rate of a municipality.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-08-09 - Filed [HB393 Detail]
Download: Texas-2017-HB393-Introduced.html
| By: Koop | H.B. No. 393 | |
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| relating to the calculation of the ad valorem rollback tax rate of a | ||
| municipality. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 26, Tax Code, is amended by adding | ||
| Section 26.0442 to read as follows: | ||
| Sec. 26.0442. TAX RATE ADJUSTMENT FOR ADDITIONAL MUNICIPAL | ||
| POLICE AND FIRE FIGHTER RETIREMENT SYSTEMS EXPENDITURES. (a) In | ||
| this section, "additional municipal police and fire fighter | ||
| retirement systems expenditures" for a tax year means the amount by | ||
| which the amount of municipal contributions required by Section | ||
| 4.02, Article 6243a-1, Revised Statutes, that were made by a | ||
| municipality in the period beginning on July 1 of the year preceding | ||
| the tax year for which the tax is adopted and ending on June 30 of | ||
| the tax year for which the tax is adopted exceeds the amount of | ||
| municipal contributions that would have been required by that | ||
| section to have been made by that municipality in that period if | ||
| that section had not been amended by H.B. 3158, Acts of the 85th | ||
| Legislature, Regular Session, 2017. | ||
| (b) In the first tax year in which a municipality adopts a | ||
| tax rate after January 1, 2018, and in which the municipality makes | ||
| additional municipal police and fire fighter retirement systems | ||
| expenditures, the effective maintenance and operations rate for the | ||
| municipality is increased by the rate computed according to the | ||
| following formula: | ||
| Additional Municipal Police and Fire Fighter Retirement | ||
| Systems Expenditures / (Current Total Value - New Property | ||
| Value) | ||
| (c) In each subsequent tax year, if the municipality's | ||
| additional municipal police and fire fighter retirement systems | ||
| expenditures exceed the amount of those expenditures for the | ||
| preceding year, the effective maintenance and operations rate for | ||
| the municipality is increased by the rate computed according to the | ||
| following formula: | ||
| (Current Tax Year's Additional Municipal Police and Fire | ||
| Fighter Retirement Systems Expenditures - Preceding Tax | ||
| Year's Additional Municipal Police and Fire Fighter | ||
| Retirement Systems Expenditures) / (Current Total Value - New | ||
| Property Value) | ||
| (d) The municipality shall include a notice of the increase | ||
| in its effective maintenance and operations rate provided by this | ||
| section, including a brief description and the amount of the | ||
| additional municipal police and fire fighter retirement systems | ||
| expenditures, in the information published under Section 26.04(e) | ||
| and, if applicable, Section 26.06(b). | ||
| Section 2: Section 26.0442, Tax Code, as added by this Act, | ||
| applies to the effective maintenance and operations rate of a | ||
| municipality beginning with the 2018 tax year. | ||
| Section 3: CONTINGENCY. (a) This Act takes effect only if | ||
| the 85th Legislature, 1st Called Session, 2017, enacts the | ||
| following and the Act become law: | ||
| (1) S.B. 1 or another Act that lowers the rollback rate | ||
| from eight percent to six percent and requires an automatic tax | ||
| ratification election if the rollback rate is exceeded. | ||
| Section 4: EFFECTIVE DATE: 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 on the 91st day after the | ||
| last day of the legislative session. | ||
