Text of section effective on January 01, 2020

1. (a) If the governing body of a school district adopts a tax rate that exceeds the district's rollback tax rate, the registered voters of the district at an election held for that purpose must determine whether to approve the adopted tax rate. When increased expenditure of money by a school district is necessary to respond to a disaster, including a tornado, hurricane, flood, or other calamity, but not including a drought, that has impacted a 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 this section to approve the tax rate adopted by the governing body for the year following the year in which the disaster occurs.
2. (c) If a majority of the votes cast in the election favor the proposition, the tax rate for the current year is the rate that was adopted by the governing body.
3. (d-1) If, after tax bills for the school district have been mailed, a proposition to approve the school district's adopted tax rate is not approved by the voters of the district at an election held under this section, on subsequent adoption of a new tax rate by the governing body of the district, the assessor for the school shall prepare and mail corrected tax bills. The assessor shall include with each bill a brief explanation of the reason for and effect of the corrected bill. The date on which the taxes become delinquent for the year is extended by a number of days equal to the number of days between the date the first tax bills were sent and the date the corrected tax bills were sent.
4. (d-2) If a property owner pays taxes calculated using the originally adopted tax rate of the school district and the proposition to approve the adopted tax rate is not approved by voters, the school district shall refund the difference between the amount of taxes paid and the amount due under the subsequently adopted rate if the difference between the amount of taxes paid and the amount due under the subsequent rate is $1 or more. If the difference between the amount of taxes paid and the amount due under the subsequent rate is less than $1, the school district shall refund the difference on request of the taxpayer. An application for a refund of less than $1 must be made within 90 days after the date the refund becomes due or the taxpayer forfeits the right to the refund.
5. (e) For purposes of this section, local tax funds dedicated to a junior college district under Section 45.105(e), Education Code, shall be eliminated from the calculation of the tax rate adopted by the governing body of the school district. However, the funds dedicated to the junior college district are subject to Section 26.085.
6. (f) Repealed by Acts 1999, 76th Leg., ch. 396, Sec. 3.01(c), eff. Sept. 1, 1999.
7. (h) For purposes of this section, increases in taxable values and tax levies occurring within a reinvestment zone under Chapter 311 (Tax Increment Financing Act), in which the district is a participant, shall be eliminated from the calculation of the tax rate adopted by the governing body of the school district.

8. (n) For purposes of this section, the rollback tax rate of a school district whose maintenance and operations tax rate for the 2005 tax year was $1.50 or less per $100 of taxable value is:

   1. (1) for the 2006 tax year, the sum of the rate that is equal to 88.67 percent of the maintenance and operations tax rate adopted by the district for the 2005 tax year, the rate of $0.04 per $100 of taxable value, and the district's current debt rate; and

   2. (2) for the 2007 and subsequent tax years, the lesser of the following:

      1. (A) the sum of the following:

         1. (i) the rate per $100 of taxable value that is equal to the product of the state compression percentage, as determined under Section 42.2516, Education Code, for the current year and $1.50;
         2. (ii) the rate of $0.04 per $100 of taxable value;
         3. (iii) the rate that is equal to the sum of the differences for the 2006 and each subsequent tax year between the adopted tax rate of the district for that year if the rate was approved at an election under this section and the rollback tax rate of the district for that year; and
         4. (iv) the district's current debt rate; or

      2. (B) the sum of the following:

         1. (i) the effective maintenance and operations tax rate of the district as computed under Subsection (i) or (k), as applicable;
         2. (ii) the rate per $100 of taxable value that is equal to the product of the state compression percentage, as determined under Section 42.2516, Education Code, for the current year and $0.06; and
         3. (iii) the district's current debt rate.

Acts 1979, 66th Leg., p. 2280, ch. 841, Sec. 1, eff. Jan. 1, 1982.

Amended by Acts 1981, 67th Leg., 1st C.S., p. 166, ch. 13, Sec. 120, eff. Jan. 1, 1982;

Acts 1983, 68th Leg., p. 5377, ch. 987, Sec. 4, eff. June 19, 1983;

Acts 1984, 68th Leg., 2nd C.S., ch. 28, art. II, Sec. 14, eff. Sept. 1, 1984;

Acts 1987, 70th Leg., ch. 947, Sec. 10, eff. Jan. 1, 1988;

Acts 1989, 71st Leg., ch. 816, Sec. 22, eff. Sept. 1, 1989;

Acts 1991, 72nd Leg., ch. 20, Sec. 20, 26, eff. Aug. 26, 1991;

Acts 1993, 73rd Leg., ch. 347, Sec. 2.04, eff. May 31, 1993;

Acts 1993, 73rd Leg., ch. 728, Sec. 85, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 260, Sec. 47, eff. May 30, 1995;

Acts 1995, 74th Leg., ch. 506, Sec. 4, eff. Aug. 28, 1995;

Acts 1995, 74th Leg., ch. 828, Sec. 4(a), eff. Sept. 1, 1995;

Acts 1997, 75th Leg., ch. 592, Sec. 2.03, eff. Sept. 1, 1997;

Acts 1999, 76th Leg., ch. 396, Sec. 1.40, 3.01(c), eff. Sept. 1, 1999;

Acts 2001, 77th Leg., ch. 1187, Sec. 2.11, eff. Sept. 1, 2001.

Acts 2006, 79th Leg., 3rd C.S., Ch. 5 (H.B. 1), Sec. 1.14, eff. May 31, 2006.

Acts 2009, 81st Leg., R.S., Ch. 777 (S.B. 1024), Sec. 1, eff. September 1, 2009.

Acts 2019, 86th Leg., R.S., Ch. 944 (S.B. 2), Sec. 54, eff. January 1, 2020.