Bill Text: TX SB1438 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: Relating to the effect of a disaster on the calculation of certain tax rates and the procedure for adoption of a tax rate by a taxing unit.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2021-06-16 - Effective immediately [SB1438 Detail]

Download: Texas-2021-SB1438-Enrolled.html

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S.B. No. 1438

AN ACT
relating to the effect of a disaster on the calculation of certain
tax rates and the procedure for adoption of a tax rate by a taxing
unit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 45.0032(d), Education Code, is amended
to read as follows:
(d) For a district to which Section 26.042(e) [26.08(a-1)],
Tax Code, applies, the amount by which the district's maintenance
tax rate exceeds the district's voter-approval tax rate, excluding
the district's current debt rate under Section 26.08(n)(3)
[26.08(n)(1)(C)], Tax Code, for the preceding year is not
considered in determining a district's tier one maintenance and
operations tax rate under Subsection (a) or the district's
enrichment tax rate under Subsection (b) for the current tax year.
SECTION 2. Section 48.202(f), Education Code, is amended to
read as follows:
(f) For a school year in which the dollar amount guaranteed
level of state and local funds per weighted student per cent of tax
effort ("GL") under Subsection (a-1)(2) exceeds the dollar amount
guaranteed level of state and local funds per weighted student per
cent of tax effort ("GL") under Subsection (a-1)(2) for the
preceding school year, a school district shall reduce the
district's tax rate under Section 45.0032(b)(2) for the tax year
that corresponds to that school year to a rate that results in the
amount of state and local funds per weighted student per cent of tax
effort available to the district at the dollar amount guaranteed
level for the preceding school year. A school district is not
entitled to the amount equal to the increase of revenue described by
this subsection for the school year for which the district must
reduce the district's tax rate. Unless Section 26.042(e)
[26.08(a-1)], Tax Code, applies to the district, for a tax year in
which a district must reduce the district's tax rate under this
subsection, the district may not increase the district's
maintenance and operations tax rate to a rate that exceeds the
maximum maintenance and operations tax rate permitted under Section
45.003(d) or (f), as applicable, minus the reduction of tax effort
required under this subsection. This subsection does not apply if
the amount of state funds appropriated for a school year
specifically excludes the amount necessary to provide the dollar
amount guaranteed level of state and local funds per weighted
student per cent of tax effort under Subsection (a-1)(2).
SECTION 3. Section 3828.157, Special District Local Laws
Code, is amended to read as follows:
Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. Sections 26.04, 26.042, 26.05, 26.07, and 26.075, Tax
Code, do not apply to a tax imposed under Section 3828.153 or
3828.156.
SECTION 4. Section 8876.152(a), Special District Local Laws
Code, is amended to read as follows:
(a) Sections 26.04, 26.042, 26.05, 26.06, 26.061, 26.07,
and 26.075, Tax Code, do not apply to a tax imposed by the district.
SECTION 5. Section 11.43(s), Tax Code, is amended to read as
follows:
(s) A person who qualifies for an exemption under Section
11.35(b) must apply for the exemption not later than the 105th day
after the date the governor declares the area in which the person's
qualified property is located to be a disaster area. [A person who
qualifies for an exemption under Section 11.35(c) must apply for
the exemption not later than the 45th day after the date the
governing body of the taxing unit adopts the exemption.] The chief
appraiser may extend the deadline [deadlines] prescribed by this
subsection for good cause shown.
SECTION 6. Chapter 26, Tax Code, is amended by adding
Section 26.042 to read as follows:
Sec. 26.042. CALCULATION AND ADOPTION OF CERTAIN TAX RATES
IN DISASTER AREA. (a) Notwithstanding Sections 26.04 and 26.041,
the governing body of a taxing unit other than a school district or
a special taxing unit may direct the designated officer or employee
to calculate the voter-approval tax rate of the taxing unit in the
manner provided for a special taxing unit if any part of the taxing
unit is located in an area declared a disaster area during the
current tax year by the governor or by the president of the United
States and at least one person is granted an exemption under Section
11.35 for property located in the taxing unit. The designated
officer or employee shall continue calculating the voter-approval
tax rate in the manner provided by this subsection until the earlier
of:
(1) the first tax year in which the total taxable value
of property taxable by the taxing unit as shown on the appraisal
roll for the taxing unit submitted by the assessor for the taxing
unit to the governing body exceeds the total taxable value of
property taxable by the taxing unit on January 1 of the tax year in
which the disaster occurred; or
(2) the third tax year after the tax year in which the
disaster occurred.
(b) In the first tax year following the last tax year for
which the designated officer or employee calculates a taxing unit's
voter-approval tax rate in the manner provided by Subsection (a),
the taxing unit's voter-approval tax rate is reduced by the taxing
unit's emergency revenue rate. For purposes of this subsection, a
taxing unit's emergency revenue rate means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
EMERGENCY REVENUE RATE = [(LAST YEAR'S ADOPTED TAX RATE -
ADJUSTED VOTER-APPROVAL TAX RATE) x LAST YEAR'S TOTAL VALUE] /
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
(c) For purposes of Subsection (b), "adjusted
voter-approval tax rate" means the voter-approval tax rate a taxing
unit would have calculated in the last year for which Subsection (a)
applied to the taxing unit if in each tax year Subsection (a)
applied to the taxing unit the taxing unit adopted a tax rate equal
to the greater of:
(1) the tax rate actually adopted by the taxing unit
for that tax year, if that tax rate was approved by the voters at an
election held under Section 26.07; or
(2) the taxing unit's voter-approval tax rate for that
tax year, calculated in the manner provided for a taxing unit other
than a special taxing unit.
(d) When increased expenditure of money by a taxing unit
other than a school district is necessary to respond to a disaster,
including a tornado, hurricane, flood, wildfire, or other calamity,
but not including a drought, epidemic, or pandemic, that has
impacted the taxing unit and the governor has declared any part of
the area in which the taxing unit is located as a disaster area, an
election is not required under Section 26.07 to approve the tax rate
adopted by the governing body for the year following the year in
which the disaster occurs.
(e) When increased expenditure of money by a school district
is necessary to respond to a disaster, including a tornado,
hurricane, flood, wildfire, or other calamity, but not including a
drought, epidemic, or pandemic, that has impacted the school
district and the governor has requested federal disaster assistance
for the area in which the school district is located, an election is
not required under Section 26.08 to approve the tax rate adopted by
the governing body of the school district for the year following the
year in which the disaster occurs. A tax rate adopted under this
subsection applies only in the year for which the rate is adopted.
(f) If a taxing unit adopts a tax rate under Subsection (d)
or (e), the amount by which that rate exceeds the taxing unit's
voter-approval tax rate for that tax year may not be considered when
calculating the taxing unit's voter-approval tax rate for the tax
year following the year in which the taxing unit adopts the rate.
(g) A taxing unit that in a tax year elects to calculate the
taxing unit's voter-approval tax rate under Subsection (a) or adopt
a tax rate that exceeds the taxing unit's voter-approval tax rate
for that tax year without holding an election under Subsection (d)
or (e) must specify the disaster declaration that provides the
basis for authorizing the taxing unit to calculate or adopt a tax
rate under the applicable subsection. A taxing unit that in a tax
year specifies a disaster declaration as providing the basis for
authorizing the taxing unit to calculate or adopt a tax rate under
Subsection (a), (d), or (e) may not in a subsequent tax year specify
the same disaster declaration as providing the basis for
authorizing the taxing unit to calculate or adopt a tax rate under
one of those subsections if in an intervening tax year the taxing
unit specifies a different disaster declaration as the basis for
authorizing the taxing unit to calculate or adopt a tax rate under
one of those subsections.
SECTION 7. Section 26.07(b), Tax Code, is amended to read as
follows:
(b) If the governing body of a special taxing unit or a
municipality with a population of 30,000 or more adopts a tax rate
that exceeds the taxing unit's voter-approval tax rate, or the
governing body of a taxing unit other than a special taxing unit or
a municipality with a population of less than 30,000 regardless of
whether it is a special taxing unit adopts a tax rate that exceeds
the greater of the taxing unit's voter-approval tax rate or de
minimis rate, the registered voters of the taxing unit at an
election held for that purpose must determine whether to approve
the adopted tax rate. [When increased expenditure of money by a
taxing unit is necessary to respond to a disaster, including a
tornado, hurricane, flood, wildfire, or other calamity, but not
including a drought, that has impacted the taxing unit and the
governor has declared any part of the area in which the taxing unit
is located as a disaster area, an election is not required under
this section to approve the tax rate adopted by the governing body
for the year following the year in which the disaster occurs.]
SECTION 8. Section 49.107(g), Water Code, is amended to
read as follows:
(g) Sections 26.04, 26.042, 26.05, 26.061, 26.07, and
26.075, Tax Code, do not apply to a tax levied and collected under
this section or an ad valorem tax levied and collected for the
payment of the interest on and principal of bonds issued by a
district.
SECTION 9. Section 49.108(f), Water Code, is amended to
read as follows:
(f) Sections 26.04, 26.042, 26.05, 26.061, 26.07, and
26.075, Tax Code, do not apply to a tax levied and collected for
payments made under a contract approved in accordance with this
section.
SECTION 10. The following provisions of the Tax Code are
repealed:
(1) Sections 11.35(c), (d), and (e);
(2) Section 26.04(c-1);
(3) Section 26.041(c-1); and
(4) Section 26.08(a-1).
SECTION 11. The changes in law made by this Act to Sections
11.35 and 11.43, Tax Code, apply only to ad valorem taxes imposed
for a tax year that begins on or after January 1, 2022.
SECTION 12. 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, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1438 passed the Senate on
April 19, 2021, by the following vote: Yeas 21, Nays 10;
May 10, 2021, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 14, 2021, House
granted request of the Senate; May 29, 2021, Senate adopted
Conference Committee Report by the following vote: Yeas 21,
Nays 10.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1438 passed the House, with
amendments, on April 29, 2021, by the following vote: Yeas 103,
Nays 43, one present not voting; May 14, 2021, House granted
request of the Senate for appointment of Conference Committee;
May 30, 2021, House adopted Conference Committee Report by the
following vote: Yeas 127, Nays 15, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor