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A BILL TO BE ENTITLED
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AN ACT
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relating to the repeal of provisions providing for the calculation |
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and effect of a de minimis ad valorem tax rate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 3828.157, Special District Local Laws |
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Code, is amended to read as follows: |
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Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE |
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PROVISIONS. Sections 26.04, 26.042, 26.05, and 26.07, [and |
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26.075,] Tax Code, do not apply to a tax imposed under Section |
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3828.153 or 3828.156. |
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SECTION 2. Section 8876.152(a), Special District Local Laws |
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Code, is amended to read as follows: |
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(a) Sections 26.04, 26.042, 26.05, 26.06, 26.061, and |
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26.07, [and 26.075,] Tax Code, do not apply to a tax imposed by the |
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district. |
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SECTION 3. Section 26.07(b), Tax Code, is amended to read as |
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follows: |
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(b) If the governing body of a [special] taxing unit [or a |
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municipality with a population of 30,000 or more] adopts a tax rate |
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that exceeds the taxing unit's voter-approval tax rate, [or the |
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governing body of a taxing unit other than a special taxing unit or |
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a municipality with a population of less than 30,000 regardless of |
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whether it is a special taxing unit adopts a tax rate that exceeds |
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the greater of the taxing unit's voter-approval tax rate or de |
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minimis rate,] the registered voters of the taxing unit at an |
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election held for that purpose must determine whether to approve |
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the adopted tax rate. |
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SECTION 4. Sections 31.12(a) and (b), Tax Code, are amended |
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to read as follows: |
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(a) If a refund of a tax provided by Section 11.431(b), |
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26.07(g), [26.075(k),] 26.15(f), 31.11, 31.111, or 31.112 is paid |
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on or before the 60th day after the date the liability for the |
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refund arises, no interest is due on the amount refunded. If not |
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paid on or before that 60th day, the amount of the tax to be refunded |
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accrues interest at a rate of one percent for each month or part of a |
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month that the refund is unpaid, beginning with the date on which |
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the liability for the refund arises. |
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(b) For purposes of this section, liability for a refund |
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arises: |
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(1) if the refund is required by Section 11.431(b), on |
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the date the chief appraiser notifies the collector for the taxing |
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unit of the approval of the late homestead exemption; |
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(2) if the refund is required by Section 26.07(g) [or |
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26.075(k)], on the date the results of the election to approve [or |
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reduce] the tax rate[, as applicable,] are certified; |
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(3) if the refund is required by Section 26.15(f): |
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(A) for a correction to the tax roll made under |
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Section 26.15(b), on the date the change in the tax roll is |
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certified to the assessor for the taxing unit under Section 25.25; |
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or |
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(B) for a correction to the tax roll made under |
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Section 26.15(c), on the date the change in the tax roll is ordered |
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by the governing body of the taxing unit; |
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(4) if the refund is required by Section 31.11, on the |
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date the auditor for the taxing unit determines that the payment was |
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erroneous or excessive or, if the amount of the refund exceeds the |
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applicable amount specified by Section 31.11(a), on the date the |
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governing body of the taxing unit approves the refund; |
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(5) if the refund is required by Section 31.111, on the |
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date the collector for the taxing unit determines that the payment |
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was erroneous; or |
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(6) if the refund is required by Section 31.112, on the |
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date required by Section 31.112(d) or (e), as applicable. |
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SECTION 5. Section 33.08(b), Tax Code, is amended to read as |
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follows: |
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(b) The governing body of the taxing unit or appraisal |
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district, in the manner required by law for official action, may |
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provide that taxes that become delinquent on or after June 1 under |
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Section [26.075(j),] 26.15(e), 31.03, 31.031, 31.032, 31.033, |
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31.04, or 42.42 incur an additional penalty to defray costs of |
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collection. The amount of the penalty may not exceed the amount of |
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the compensation specified in the applicable contract with an |
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attorney under Section 6.30 to be paid in connection with the |
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collection of the delinquent taxes. |
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SECTION 6. Section 49.107(g), Water Code, is amended to |
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read as follows: |
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(g) Sections 26.04, 26.042, 26.05, 26.061, and 26.07, [and |
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26.075,] Tax Code, do not apply to a tax levied and collected under |
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this section or an ad valorem tax levied and collected for the |
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payment of the interest on and principal of bonds issued by a |
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district. |
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SECTION 7. Section 49.108(f), Water Code, is amended to |
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read as follows: |
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(f) Sections 26.04, 26.042, 26.05, 26.061, and 26.07, [and |
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26.075,] Tax Code, do not apply to a tax levied and collected for |
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payments made under a contract approved in accordance with this |
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section. |
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SECTION 8. Section 49.23603, Water Code, is amended by |
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amending Subsection (c) and adding Subsections (d), (e), (f), (g), |
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(h), (i), (j), and (k) to read as follows: |
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(c) If the board of a district adopts a combined debt |
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service, contract, and operation and maintenance tax rate that |
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would impose more than 1.08 times the amount of tax imposed by the |
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district in the preceding year on a residence homestead appraised |
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at the average appraised value of a residence homestead in the |
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district in that year, disregarding any homestead exemption |
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available only to disabled persons or persons 65 years of age or |
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older, the qualified voters of the district by petition may require |
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that an election be held to determine whether to reduce the tax rate |
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adopted for the current year to the voter-approval tax rate in |
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accordance with the procedures provided by this section and Section |
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[Sections 26.075 and] 26.081, Tax Code. |
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(d) A petition is valid only if the petition: |
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(1) states that it is intended to require an election |
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in the district on the question of reducing the district's adopted |
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tax rate for the current tax year; |
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(2) is signed by a number of registered voters of the |
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district equal to at least three percent of the registered voters of |
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the district determined according to the most recent list of those |
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voters; and |
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(3) is submitted to the district's board not later than |
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the 90th day after the date on which the board adopts the tax rate |
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for the current tax year. |
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(e) Not later than the 20th day after the date on which a |
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petition is submitted, the board shall determine whether the |
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petition is valid and must by resolution state the board's |
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determination. If the board fails to make the determination in the |
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time and manner required by this subsection, the petition is |
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considered to be valid for the purposes of this section. |
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(f) If the board determines that the petition is valid or |
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fails to make the determination in the time and manner required by |
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Subsection (e), the board shall order that an election be held in |
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the district on the next uniform election date that allows |
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sufficient time to comply with the requirements of other law. |
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(g) At the election, the ballots shall be prepared to permit |
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voting for or against the proposition: "Reducing the tax rate in |
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(name of district) for the current year from (insert tax rate |
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adopted for current year) to (insert voter-approval tax rate)." |
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(h) If a majority of the votes cast in the election favor the |
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proposition, the tax rate for the current tax year is the |
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voter-approval tax rate. |
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(i) If the proposition is not approved as provided by |
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Subsection (h), the tax rate for the district for the current tax |
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year is the tax rate adopted by the district's board for the current |
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tax year. |
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(j) If the tax rate is reduced by an election held under this |
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section after tax bills for the district have been mailed, the |
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assessor for the district shall prepare and mail corrected tax |
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bills. The assessor shall include with the bill a brief explanation |
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of the reason for and effect of the corrected bill. The date on |
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which the taxes become delinquent for the tax year is extended by a |
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number of days equal to the number of days between the date the |
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first tax bills were sent and the date the corrected tax bills were |
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sent. |
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(k) If a property owner pays taxes calculated using the |
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higher tax rate when the tax rate is reduced by an election held |
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under this section, the district shall refund the difference |
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between the amount of taxes paid and the amount due under the |
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reduced tax rate if the difference between the amount of taxes paid |
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and the amount due under the reduced tax rate is $1 or more. If the |
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difference between the amount of taxes paid and the amount due under |
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the reduced rate is less than $1, the district shall refund the |
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difference on request of the taxpayer. An application for a refund |
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of less than $1 must be made within 90 days after the date the refund |
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becomes due or the taxpayer forfeits the right to the refund. |
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SECTION 9. The following provisions of the Tax Code are |
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repealed: |
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(1) Section 26.012(8-a); |
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(2) Section 26.063; and |
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(3) Section 26.075. |
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SECTION 10. This Act applies only to ad valorem taxes |
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imposed for an ad valorem tax year that begins on or after the |
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effective date of this Act. |
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SECTION 11. This Act takes effect January 1, 2024. |