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A BILL TO BE ENTITLED
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AN ACT
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relating to the form of a notice of public hearing on a proposed ad |
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valorem tax rate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 26.06(b-1), (b-2), and (b-3), Tax Code, |
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are amended to read as follows: |
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(b-1) If the proposed tax rate exceeds the no-new-revenue |
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tax rate and the voter-approval tax rate of the taxing unit, the |
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notice must contain a statement in the following form: |
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"NOTICE OF PUBLIC HEARING ON TAX INCREASE |
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"LAST YEAR'S TAX RATE $__________ per $100 |
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"PROPOSED TAX RATE $__________ per $100 |
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"NO-NEW-REVENUE TAX RATE $__________ per $100 |
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"VOTER-APPROVAL TAX RATE $__________ per $100 |
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"The no-new-revenue tax rate is the tax rate for the (current |
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tax year) tax year that will raise the same amount of property tax |
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revenue for (name of taxing unit) from the same properties in both |
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the (preceding tax year) tax year and the (current tax year) tax |
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year. |
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"The voter-approval tax rate is the highest tax rate that |
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(name of taxing unit) may adopt without holding an election to seek |
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voter approval of the rate. |
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"The proposed tax rate is greater than the no-new-revenue tax |
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rate. This means that (name of taxing unit) is proposing to |
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increase property taxes for the (current tax year) tax year. |
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"A public hearing on the proposed tax rate will be held on |
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(date and time) at (meeting place). |
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"The proposed tax rate is also greater than the |
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voter-approval tax rate. If (name of taxing unit) adopts the |
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proposed tax rate, (name of taxing unit) is required to hold an |
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election so that the voters may accept or reject the proposed tax |
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rate. If a majority of the voters reject the proposed tax rate, the |
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tax rate of the (name of taxing unit) will be the voter-approval tax |
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rate. The election will be held on (date of election). You may |
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contact the (name of office responsible for administering the |
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election) for information about voting locations. The hours of |
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voting on election day are (voting hours). |
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"Your taxes owed under any of the tax rates mentioned above |
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can be calculated as follows: |
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"Property tax amount = tax rate x taxable value of your |
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property / 100 |
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"(Names of all members of the governing body, showing how |
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each voted on the proposal to consider the tax increase or, if one |
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or more were absent, indicating the absences.) |
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"Visit Texas.gov/PropertyTaxes to find a link to your local |
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property tax database on which you can easily access information |
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regarding your property taxes, including information about |
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proposed tax rates and scheduled public hearings of each entity |
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that taxes your property. |
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"The 86th Texas Legislature modified the manner in which the |
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voter-approval tax rate is calculated to limit the rate of growth of |
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property taxes in the state." |
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(b-2) If the proposed tax rate exceeds the no-new-revenue |
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tax rate but does not exceed the voter-approval tax rate of the |
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taxing unit, the notice must contain a statement in the following |
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form: |
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"NOTICE OF PUBLIC HEARING ON TAX INCREASE |
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"LAST YEAR'S TAX RATE $__________ per $100 |
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"PROPOSED TAX RATE $__________ per $100 |
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"NO-NEW-REVENUE TAX RATE $__________ per $100 |
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"VOTER-APPROVAL TAX RATE $__________ per $100 |
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"The no-new-revenue tax rate is the tax rate for the (current |
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tax year) tax year that will raise the same amount of property tax |
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revenue for (name of taxing unit) from the same properties in both |
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the (preceding tax year) tax year and the (current tax year) tax |
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year. |
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"The voter-approval tax rate is the highest tax rate that |
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(name of taxing unit) may adopt without holding an election to seek |
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|
voter approval of the rate. |
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|
"The proposed tax rate is greater than the no-new-revenue tax |
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|
rate. This means that (name of taxing unit) is proposing to |
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increase property taxes for the (current tax year) tax year. |
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"A public hearing on the proposed tax rate will be held on |
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(date and time) at (meeting place). |
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"The proposed tax rate is not greater than the voter-approval |
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tax rate. As a result, (name of taxing unit) is not required to |
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hold an election at which voters may accept or reject the proposed |
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tax rate. However, you may express your support for or opposition |
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to the proposed tax rate by contacting the members of the (name of |
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governing body) of (name of taxing unit) at their offices or by |
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attending the public hearing mentioned above. |
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"Your taxes owed under any of the tax rates mentioned above |
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|
can be calculated as follows: |
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"Property tax amount = tax rate x taxable value of your |
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property / 100 |
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"(Names of all members of the governing body, showing how |
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each voted on the proposal to consider the tax increase or, if one |
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or more were absent, indicating the absences.) |
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|
"Visit Texas.gov/PropertyTaxes to find a link to your local |
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|
property tax database on which you can easily access information |
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|
regarding your property taxes, including information about |
|
|
proposed tax rates and scheduled public hearings of each entity |
|
|
that taxes your property. |
|
|
"The 86th Texas Legislature modified the manner in which the |
|
|
voter-approval tax rate is calculated to limit the rate of growth of |
|
|
property taxes in the state." |
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(b-3) If the proposed tax rate does not exceed the |
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no-new-revenue tax rate but exceeds the voter-approval tax rate of |
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the taxing unit, the notice must contain a statement in the |
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following form: |
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"NOTICE OF PUBLIC HEARING ON TAX RATE |
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"LAST YEAR'S TAX RATE $__________ per $100 |
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"PROPOSED TAX RATE $__________ per $100 |
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"NO-NEW-REVENUE TAX RATE $__________ per $100 |
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"VOTER-APPROVAL TAX RATE $__________ per $100 |
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"The no-new-revenue tax rate is the tax rate for the (current |
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|
tax year) tax year that will raise the same amount of property tax |
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|
revenue for (name of taxing unit) from the same properties in both |
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the (preceding tax year) tax year and the (current tax year) tax |
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|
year. |
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|
"The voter-approval tax rate is the highest tax rate that |
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(name of taxing unit) may adopt without holding an election to seek |
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|
voter approval of the rate. |
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|
"The proposed tax rate is not greater than the no-new-revenue |
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|
tax rate. This means that (name of taxing unit) is not proposing to |
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|
increase property taxes for the (current tax year) tax year. |
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"A public hearing on the proposed tax rate will be held on |
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(date and time) at (meeting place). |
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"The proposed tax rate is greater than the voter-approval tax |
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rate. If (name of taxing unit) adopts the proposed tax rate, (name |
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of taxing unit) is required to hold an election so that the voters |
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|
may accept or reject the proposed tax rate. If a majority of the |
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voters reject the proposed tax rate, the tax rate of the (name of |
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taxing unit) will be the voter-approval tax rate. The election |
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will be held on (date of election). You may contact the (name of |
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office responsible for administering the election) for information |
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about voting locations. The hours of voting on election day are |
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(voting hours). |
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"Your taxes owed under any of the tax rates mentioned above |
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|
can be calculated as follows: |
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"Property tax amount = tax rate x taxable value of your |
|
|
property / 100 |
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|
"(Names of all members of the governing body, showing how |
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|
each voted on the proposal to consider the tax rate or, if one or |
|
|
more were absent, indicating the absences.) |
|
|
"Visit Texas.gov/PropertyTaxes to find a link to your local |
|
|
property tax database on which you can easily access information |
|
|
regarding your property taxes, including information about |
|
|
proposed tax rates and scheduled public hearings of each entity |
|
|
that taxes your property. |
|
|
"The 86th Texas Legislature modified the manner in which the |
|
|
voter-approval tax rate is calculated to limit the rate of growth of |
|
|
property taxes in the state." |
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SECTION 2. Section 26.061(b), Tax Code, is amended to read |
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as follows: |
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(b) The notice of the meeting at which the governing body of |
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the taxing unit will vote on the proposed tax rate must contain a |
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statement in the following form: |
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"NOTICE OF MEETING TO VOTE ON TAX RATE |
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"LAST YEAR'S TAX RATE $__________ per $100 |
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"PROPOSED TAX RATE $__________ per $100 |
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"NO-NEW-REVENUE TAX RATE $__________ per $100 |
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"VOTER-APPROVAL TAX RATE $__________ per $100 |
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"The no-new-revenue tax rate is the tax rate for the (current |
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|
tax year) tax year that will raise the same amount of property tax |
|
|
revenue for (name of taxing unit) from the same properties in both |
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|
the (preceding tax year) tax year and the (current tax year) tax |
|
|
year. |
|
|
"The voter-approval tax rate is the highest tax rate that |
|
|
(name of taxing unit) may adopt without holding an election to seek |
|
|
voter approval of the rate. |
|
|
"The proposed tax rate is not greater than the no-new-revenue |
|
|
tax rate. This means that (name of taxing unit) is not proposing to |
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|
increase property taxes for the (current tax year) tax year. |
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|
"A public meeting to vote on the proposed tax rate will be |
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|
held on (date and time) at (meeting place). |
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|
"The proposed tax rate is also not greater than the |
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|
voter-approval tax rate. As a result, (name of taxing unit) is not |
|
|
required to hold an election to seek voter approval of the |
|
|
rate. However, you may express your support for or opposition to |
|
|
the proposed tax rate by contacting the members of the (name of |
|
|
governing body) of (name of taxing unit) at their offices or by |
|
|
attending the public meeting mentioned above. |
|
|
"Your taxes owed under any of the above rates can be |
|
|
calculated as follows: |
|
|
"Property tax amount = tax rate x taxable value of your |
|
|
property / 100 |
|
|
"(Names of all members of the governing body, showing how |
|
|
each voted on the proposed tax rate or, if one or more were absent, |
|
|
indicating the absences.) |
|
|
"Visit Texas.gov/PropertyTaxes to find a link to your local |
|
|
property tax database on which you can easily access information |
|
|
regarding your property taxes, including information about |
|
|
proposed tax rates and scheduled public hearings of each entity |
|
|
that taxes your property. |
|
|
"The 86th Texas Legislature modified the manner in which the |
|
|
voter-approval tax rate is calculated to limit the rate of growth of |
|
|
property taxes in the state." |
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SECTION 3. Section 26.062, Tax Code, is amended by adding |
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Subsections (i), (j), (k), and (l) to read as follows: |
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(i) In addition to any other information required by law, a |
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notice required by Section 26.06(b-1), (b-2), or (b-3) or 26.061 |
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must include, in a prominent location on the notice: |
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(1) a statement in the following form, followed by the |
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table described by Subsection (j): |
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"The following table compares the revenue generated by the |
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maintenance and operations rate and debt rate adopted by (name of |
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taxing unit) for the preceding tax year and the revenue that would |
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be generated by the maintenance and operations rate and debt rate |
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proposed to be adopted by (name of taxing unit) for the current tax |
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year."; |
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(2) a statement in the following form, followed by the |
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table described by Subsection (k): |
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"The following table compares the total taxable value of |
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property in the (name of taxing unit) in the preceding tax year and |
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the total taxable value of property in the (name of taxing unit) in |
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the current tax year."; and |
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(3) a statement in the following form, followed by the |
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table described by Subsection (l): |
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"Last year, (name of taxing unit) adopted a property tax rate |
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of (insert tax rate adopted by the taxing unit for the preceding tax |
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year), which generated (insert the amount computed by multiplying |
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the total taxable value of property in the taxing unit in the |
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preceding tax year by the tax rate adopted by the taxing unit for |
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the preceding tax year and dividing the product by 100) in tax |
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revenue for (name of taxing unit). The following table shows the |
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amounts of revenue that would be generated if (name of taxing unit) |
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adopted for the current tax year the no-new-revenue tax rate, the |
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voter-approval tax rate, and the proposed tax rate, respectively, |
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as calculated for that tax year." |
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(j) The table following the statement required by |
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Subsection (i)(1) must include three rows and four columns. The |
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first column of the first row must be left blank, the second column |
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of the first row must state the year corresponding to the preceding |
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tax year, the third column of the first row must state the year |
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corresponding to the current tax year, and the fourth column of the |
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first row must be entitled "Change". The first column of the second |
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row must be entitled "Maintenance and operations revenue", the |
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second column of the second row must state the amount of maintenance |
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and operations revenue attributable to ad valorem taxes imposed by |
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the taxing unit in the preceding tax year, the third column of the |
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second row must state the amount of the estimated maintenance and |
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operations revenue attributable to ad valorem taxes imposed by the |
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taxing unit in the current tax year, and the fourth column of the |
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second row must state the nominal difference between the amount of |
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maintenance and operations revenue attributable to ad valorem taxes |
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imposed by the taxing unit in the preceding tax year and the amount |
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of the estimated maintenance and operations revenue attributable to |
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ad valorem taxes imposed by the taxing unit in the current tax year. |
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The first column of the third row must be entitled "Debt |
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collections", the second column of the third row must state the |
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amount of revenue for debt service attributable to ad valorem taxes |
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imposed by the taxing unit in the preceding tax year, the third |
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column of the third row must state the estimated amount of revenue |
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for debt service attributable to ad valorem taxes imposed by the |
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taxing unit in the current tax year, and the fourth column of the |
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second row must state the nominal difference between the amount of |
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revenue for debt service attributable to ad valorem taxes imposed |
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by the taxing unit in the preceding tax year and the estimated |
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amount of revenue for debt service attributable to ad valorem taxes |
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imposed by the taxing unit in the current tax year. |
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(k) The table following the statement required by |
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Subsection (i)(2) must include two rows and four columns. The first |
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column of the first row must be left blank, the second column of the |
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first row must state the year corresponding to the preceding tax |
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year, the third column of the first row must state the year |
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corresponding to the current tax year, and the fourth column of the |
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first row must be entitled "Change". The first column of the second |
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row must be entitled "Total taxable value of property", the second |
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column of the second row must state the total taxable value of |
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property in the taxing unit in the preceding tax year, the third |
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column of the second row must state the total taxable value of |
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property in the taxing unit in the current tax year, and the fourth |
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column of the second row must state the nominal difference between |
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the total taxable value of property in the taxing unit in the |
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preceding tax year and the total taxable value of property in the |
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taxing unit in the current tax year. |
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(l) The table following the statement required by |
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Subsection (i)(3) must include two rows and four columns. The first |
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column of the first row must be left blank, the second column of the |
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first row must be entitled "No-new-revenue tax rate", the third |
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column of the first row must be entitled "Voter-approval tax rate", |
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and the fourth column of the first row must be entitled "Proposed |
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tax rate". The first column of the second row must be entitled |
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"Property tax revenue in current year", the second column of the |
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second row must state the amount computed by multiplying the total |
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taxable value of property in the taxing unit in the current tax year |
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by the no-new-revenue tax rate of the taxing unit for the current |
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tax year and dividing the product by 100, the third column of the |
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second row must state the amount computed by multiplying the total |
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taxable value of property in the taxing unit in the current tax year |
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by the voter-approval tax rate of the taxing unit for the current |
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tax year and dividing the product by 100, and the fourth column of |
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the second row must state the amount computed by multiplying the |
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total taxable value of property in the taxing unit in the current |
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tax year by the proposed tax rate of the taxing unit for the current |
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tax year and dividing the product by 100. |
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SECTION 4. The change in law made by this Act applies only |
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to a tax rate notice that is provided by a taxing unit on or after |
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the effective date of this Act. A tax rate notice that is provided |
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by a taxing unit before the effective date of this Act is governed |
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by the law in effect on the date the notice is provided, and the |
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former law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect January 1, 2024. |