In response to Representative Rob Eissler’s five questions regarding a district’s authority under section 26.08 to set tax rates the AG summary states:
Tax Code subsection 26.08(a) prohibits a school district from adopting a tax rate (the “adopted rate”) that exceeds the rollback tax rate (the “rollback rate”) for the district unless the adopted rate is approved by the district’s registered voters at an election held for that purpose (the “rollback election”), except in the event of certain disasters. The rollback rate is calculated in accordance with subsection 26.08(n) and has a maximum maintenance and operation (“M&O”) tax rate component and a current debt rate component.
Based on an examination of the subsection 26.08(n) formula for calculating the rollback rate and its operation, the Legislature intended an increase in the adopted M&O tax rate above the maximum M&O tax rate component calculated for the purposes of the rollback rate calculation to be approved by the district’s registered voters. Thus, subsections 26.08(a) and (n), considered together, do not authorize a school district to increase the adopted M&O tax rate above the maximum M&O tax rate component calculated for the purposes of the rollback rate without a rollback election.
Subsection 26.08(a) requires a school district to hold a rollback election to approve a rate previously adopted under the disaster exception in order to adopt that rate in a year subsequent to the year following the year in which the disaster occurred, if the rate exceeds the district’s rollback rate for that subsequent year.
Subsections 26.08(b) and (c) require the voters in a school district to approve the district’s adopted rate if it exceeds the rollback rate, i.e., a specific tax rate rather than a maximum rate.
Accordingly, these subsections do not authorize a school district to adopt a tax rate that is lower than the adopted rate approved by the district’s registered voters at a rollback election.
Under subsection 26.08(n), voter-approved increases to the M&O tax rate become part of the rollback rate calculation and potentially increase the M&O tax rate component of the rollback rate. However, a school district’s authority to adopt a particular M&O tax rate in subsequent years will necessarily depend on a district’s maximum M&O tax rate calculated for the purposes of the rollback rate for those subsequent years.
A school district is not expressly or impliedly authorized to calculate its rollback rate based on a district-generated projection of taxable value of property in the district when the district has not received the certified appraisal roll from the appraisal district.
A complete copy of the opinion can be found by visiting: http://www.oag.state.tx.us/opinions/opinions/50abbott/op/2010/htm/ga-0775.htm
To view the complete copy of House Public Education Committee Chairman Eissler’s request, please visit: http://www.oag.state.tx.us/opinions/opinions/50abbott/rq/2009/pdf/RQ0839GA.pdf