88(1) SB 26 - Engrossed version - Bill Text
 
 
  By:  Bettencourt, et al. S.B.  No.  26

Statutes affected:
Introduced: Education Code 48.255, Education Code 48.2551, Subchapter F, Chapter , Education Code 48.255, Tax Code 11.13, Tax Code 11.301, Education Code 46.071, Education Code 48.2542, Education Code 48.2543, Education Code 48.2556, Education Code 45.0032, Education Code 49.154, Education Code 49.308, Government Code 403.302, Tax Code 25.23, Tax Code 26.04, Tax Code 26.08, Tax Code 26.09, Tax Code 26.15, Tax Code 31.01, Tax Code 31.02, Tax Code 171.002, Tax Code 171.204 (Tax Code 11, Education Code 49, Tax Code 26, Tax Code 171, Education Code 45, Tax Code 25, Tax Code 31, Education Code 48, Government Code 403, Subchapter F, Chapter , Education Code 48, Education Code 46)
Engrossed: Education Code 48.255, Education Code 48.2551, Subchapter F, Chapter , Education Code 48.255, Tax Code 11.13, Tax Code 11.301, Education Code 46.071, Education Code 48.2542, Education Code 48.2543, Education Code 48.2556, Education Code 45.0032, Education Code 49.154, Education Code 49.308, Government Code 403.302, Tax Code 25.23, Tax Code 26.04, Tax Code 26.08, Tax Code 26.09, Tax Code 26.15, Tax Code 31.01, Tax Code 31.02, Tax Code 171.002, Tax Code 171.204 (Tax Code 11, Education Code 49, Tax Code 26, Tax Code 171, Education Code 45, Tax Code 25, Tax Code 31, Education Code 48, Government Code 403, Subchapter F, Chapter , Education Code 48, Education Code 46)

 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to providing property tax relief through the public school
  finance system, exemptions, and limitations on taxes and providing
  franchise tax relief.
               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. SHORT TITLE
               SECTION  1.01.    This Act may be cited as the Property Tax and
  Franchise Tax Relief Act.
  ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
               SECTION  2.01.    Section 48.255(b), Education Code, is amended
  to read as follows:
               (b)    The state compression percentage is the lower of:
                           (1)    93 percent, or a lower percentage set by
  appropriation for a school year;
                           (2)    the percentage determined by the following
  formula:
  SCP = PYCP X 1.0175 [1.025]/(1 + ECPV); or
                           (3)    the percentage determined under this section for
  the preceding school year.
               SECTION  2.02.    Section 48.2551(b), Education Code, is
  amended to read as follows:
               (b)    Except as provided by Subsection (c), a district's
  maximum compressed rate ("MCR") is the lesser of:
                           (1)    the rate determined by the following applicable
  formula:
                                       (A)    if "DPV" exceeds "PYDPV" by an amount equal
  to or greater than 1.75 [2.5] percent:
  MCR = (1.0175 [1.025]((PYDPV+E) X PYMCR))/DPV; or
                                       (B)    if Paragraph (A) does not apply:
  MCR = PYMCR; or
                           (2)    the product of the state compression percentage,
  as determined under Section 48.255, for the current tax year,
  multiplied by $1.00.
               SECTION  2.03.    Subchapter F, Chapter 48, Education Code, is
  amended by adding Sections 48.2555 and 48.283 to read as follows:
               Sec.  48.2555.    MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
  SCHOOL YEAR. (a) Notwithstanding any other provision of this title
  or Chapter 26, Tax Code, for the 2023-2024 school year, the
  commissioner shall calculate the value of a school district's
  maximum compressed tax rate by determining the district's maximum
  compressed rate under Section 48.2551 or 48.2552(b), if applicable,
  and reducing the tax rate determined under the applicable section
  by $0.10.
               (b)    If a school district's maximum compressed tax rate as
  calculated under Subsection (a) would be less than 90 percent of
  another school district's maximum compressed tax rate under
  Subsection (a), the district's maximum compressed tax rate is the
  value at which the district's maximum compressed tax rate would be
  equal to 90 percent of the other district's maximum compressed tax
  rate.
               (c)    Notwithstanding any other provision of this title or
  Chapter 26, Tax Code, for purposes of determining funding for
  school districts for the 2023-2024 school year, a reference in any
  of the following provisions of law to a school district's maximum
  compressed tax rate or maximum compressed rate as determined under
  Section 48.2551 means the maximum compressed tax rate determined
  for the district under this section:
                           (1)    Section 13.054(f);
                           (2)    Section 45.003(d);
                           (3)    Section 45.0032(a);
                           (4)    Section 48.051(a);
                           (5)    Sections 48.2553(a) and (e); and
                           (6)    Section 26.08(n), Tax Code.
               (d)    For purposes of Section 30.003(f-1), a reference in that
  section to Section 48.2551 includes this section.
               (e)    Notwithstanding any other provision of this title, for
  purposes of determining a school district's maximum compressed tax
  rate under Section 48.2551 for the 2024-2025 school year, the value