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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of the ad valorem rollback tax rate of a |
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municipality. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 26, Tax Code, is amended by adding |
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Section 26.0442 to read as follows: |
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Sec. 26.0442. TAX RATE ADJUSTMENT FOR ADDITIONAL MUNICIPAL |
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POLICE AND FIRE FIGHTER RETIREMENT SYSTEMS EXPENDITURES. (a) In |
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this section, "additional municipal police and fire fighter |
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retirement systems expenditures" for a tax year means the amount by |
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which the amount of municipal contributions required by Section |
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4.02, Article 6243a-1, Revised Statutes, that were made by a |
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municipality in the period beginning on July 1 of the year preceding |
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the tax year for which the tax is adopted and ending on June 30 of |
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the tax year for which the tax is adopted exceeds the amount of |
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municipal contributions that would have been required by that |
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section to have been made by that municipality in that period if |
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that section had not been amended by H.B. 3158, Acts of the 85th |
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Legislature, Regular Session, 2017. |
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(b) In the first tax year in which a municipality adopts a |
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tax rate after January 1, 2018, and in which the municipality makes |
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additional municipal police and fire fighter retirement systems |
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expenditures, the effective maintenance and operations rate for the |
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municipality is increased by the rate computed according to the |
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following formula: |
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Additional Municipal Police and Fire Fighter Retirement |
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Systems Expenditures / (Current Total Value - New Property |
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Value) |
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(c) In each subsequent tax year, if the municipality's |
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additional municipal police and fire fighter retirement systems |
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expenditures exceed the amount of those expenditures for the |
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preceding year, the effective maintenance and operations rate for |
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the municipality is increased by the rate computed according to the |
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following formula: |
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(Current Tax Year's Additional Municipal Police and Fire |
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Fighter Retirement Systems Expenditures - Preceding Tax |
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Year's Additional Municipal Police and Fire Fighter |
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Retirement Systems Expenditures) / (Current Total Value - New |
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Property Value) |
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(d) The municipality shall include a notice of the increase |
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in its effective maintenance and operations rate provided by this |
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section, including a brief description and the amount of the |
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additional municipal police and fire fighter retirement systems |
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expenditures, in the information published under Section 26.04(e) |
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and, if applicable, Section 26.06(b). |
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Section 2: Section 26.0442, Tax Code, as added by this Act, |
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applies to the effective maintenance and operations rate of a |
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municipality beginning with the 2018 tax year. |
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Section 3: CONTINGENCY. (a) This Act takes effect only if |
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the 85th Legislature, 1st Called Session, 2017, enacts the |
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following and the Act become law: |
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(1) S.B. 1 or another Act that lowers the rollback rate |
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from eight percent to six percent and requires an automatic tax |
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ratification election if the rollback rate is exceeded. |
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Section 4: EFFECTIVE DATE: This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect on the 91st day after the |
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last day of the legislative session. |