HBA-MPM H.B. 1745 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1745
By: Flores
Public Education
4/19/1999
Introduced



BACKGROUND AND PURPOSE 

Current law allows a large single taxpayer to withhold payment of taxes
during a challenge to appraised values until the contest is resolved.  Poor
school districts who rely heavily on this funding can be affected by the
taxpayer's contesting and refusal to pay taxes.  H.B. 1745 amends the
Education Code to make modifications to certain formulas with respect to
this issue. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 42.253(i), Education Code, to require the
commissioner of education (commissioner) to determine the actual amount of
state funds to which each school district receiving credit under Section
42.302(b) (Allotment), Education Code, for taxes unpaid pending appraisal
appeals was entitled under the allocation formulas under this chapter for
the school year in which the district received the credit.  Further
requires the commissioner to compare that amount with the amount of the
warrants issued to each district for that year.  Requires the commissioner
to adjust the districts entitlement for the next fiscal year if the amount
of the warrant differs from the amount to which the district is entitled
without respect to variations in the district's tax rate, student
enrollment, or taxable value of property. 

SECTION 2.  Amends Section 42.302, Education Code, as follows:

Sec. 42.302.  ALLOTMENT.  (a)  Expands the definition of "DTR" as the
district enrichment and facilities tax rate of the school district
(district), which is determined by subtracting the amounts specified in
Subsection (b) from the sum of the total amount, rather than the total
amount, of taxes collected by the district for the applicable school year
and the total amount of taxes unpaid pending appraisal appeals for that
year and dividing the difference by the quotient of the district's taxable
value of property as determined under Subchapter M (Study of School
District Property Values), Chapter 403, Government Code, divided by 100.  

(b)  Provides that for purposes of Subsection (a) the total amount of taxes
unpaid pending appraisal appeals is the difference between the total amount
of taxes levied by the school district on property that is the subject of a
protest under Section 41.41 (Right of Protest), Tax Code, or an appeal
under Section 42.01(a)(1) (Right of Appeal by Property Owner), Tax Code, as
of the date for which the computation is made less the total amount of
taxes paid on that property as of that date.  Provides that, for the
purposes of this subsection, the amount of taxes levied on property that is
the subject of a protest or appeal is determined using the taxable value of
the property according to the appraisal roll certified to the district.  

(c)  Provides that in computing a district's DTR, the total amount of taxes
collected by the district does not include the amount of taxes collected on
property for a tax year for which the district previously included taxes
levied on the property in the total amount of taxes  unpaid pending
appraisal appeals.  Makes a conforming change. 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.