Cain bill repealing the disaster exception to tax rate elections

The text as introduced · 650 words

89R4829 PRL-D

By: Cain
H.B. No. 763

A BILL TO BE ENTITLED

AN ACT

relating to the repeal of provisions authorizing certain taxing

units in the year following the year in which a disaster occurs to

adopt an ad valorem tax rate that exceeds the voter-approval tax

rate without holding an election to approve the adopted tax rate;

making conforming changes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. 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. For [ Unless Section 26.042(e), 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 2. The heading to Section 26.042, Tax Code, is

amended to read as follows:

Sec. 26.042. CALCULATION [ AND ADOPTION ] OF VOTER-APPROVAL

TAX RATE OF CERTAIN TAXING UNITS [ TAX RATES ] IN DISASTER AREA.

SECTION 3. Section 26.042(g), Tax Code, is amended to read

as follows:

(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 that [ 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

that subsection [ 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 that subsection [ one of those subsections ].

SECTION 4. The following provisions are repealed:

(1) Section 45.0032(d), Education Code; and

(2) Sections 26.042(d), (e), and (f), Tax Code.

SECTION 5. This Act applies only to ad valorem taxes imposed

for an ad valorem tax year that begins on or after the effective

date of this Act.

SECTION 6. This Act takes effect January 1, 2026.