The following apply to determinations of the ad valorem tax
bond allowable rate:
(1) "bond allowable rate" means the portion of the
maximum authorized tax rate available for debt service;
(2) except as provided below, and except for good cause
shown, all political subdivisions have a bond allowable rate equal
to 2/3 of the maximum tax rate authorized by law;
(3) home rule cities and general law cities authorized
by §5 of Article XI of the Texas Constitution to levy a tax of
up to $2.50 per $100 valuation have a bond allowable rate of $1.50
per $100 valuation, unless the tax rate is further limited by the
city's charter;
(4) counties have a bond allowable rate of $.40 per
$100 valuation, plus an additional bond allowable rate of 1/2 of the
tax rate voted for "further maintenance of public roads" authorized
by §9 of Article VIII of the Texas Constitution up to a maximum
additional tax of $.075 per $100 for public securities payable from
that tax;
(5) annual tax funds available for debt service shall
be calculated assuming a collection rate of 90% or a higher rate based
on the average collection rate for the most recent three years, as
certified by the issuer. In calculating the average collection rate,
the annual collection rate used for any year may not exceed 100%;
and
(6) the bond allowable rate may be further restricted
by state law.
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