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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Engrossed.html

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By: Bettencourt S.B. No. 1438

A BILL TO BE ENTITLED
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(c) [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(c)
[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. 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 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) 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.
(c) 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.
(d) If a taxing unit adopts a tax rate under Subsection (b)
or (c), 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.
(e) 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 (b)
or (c) 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), (b), or (c) 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 6. 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 7. 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 8. 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 9. Sections 26.04(c-1), 26.041(c-1), and
26.08(a-1), Tax Code, are repealed.
SECTION 10. 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.