By Junell H.B. No. 155
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to submission and publication of ad valorem tax rates.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 26, Tax Code, is amended by adding
1-5 Section 26.052 to read as follows:
1-6 Sec. 26.052. SIMPLIFIED TAX RATE NOTICE FOR SMALL TAXING
1-7 UNITS. (a) This section applies only to a taxing unit for which
1-8 the total tax rate proposed for the current tax year:
1-9 (1) is five cents or less on each $100 valuation of
1-10 taxable property; and
1-11 (2) would impose taxes of $150,000 or less when
1-12 applied to the total taxable value of property taxable by the
1-13 taxing unit according to the appraisal roll for the current tax
1-14 year.
1-15 (b) A taxing unit to which this section applies is exempt
1-16 from the publication requirements of Section 26.04(e) and is not
1-17 subject to an injunction under Section 26.04(g) for failure to
1-18 comply with those publication requirements.
1-19 (c) A taxing unit to which this section applies may provide
1-20 public notice of its proposed tax rate in either of the following
1-21 methods not later than the seventh day before the date on which the
1-22 tax rate is adopted:
1-23 (1) mailing a notice of the proposed tax rate to each
1-24 owner of taxable property in the taxing unit; or
2-1 (2) publishing notice of the proposed tax rate in the
2-2 legal notices section of a newspaper having general circulation in
2-3 the taxing unit.
2-4 (d) A taxing unit that provides notice of a proposed tax
2-5 rate under Subsection (c) is exempt from Sections 26.05(d) and
2-6 26.06 and is not subject to an injunction under Section 26.05(e)
2-7 for failure to comply with Section 26.05(d). A taxing unit that
2-8 provides notice of a proposed tax rate under Subsection (c) may not
2-9 adopt a tax rate that exceeds the rate set out in the notice unless
2-10 the taxing unit provides additional notice under Subsection (c) of
2-11 the higher rate or complies with Sections 26.05(d) and 26.06 in
2-12 adopting the higher rate.
2-13 (e) Public notice provided under Subsection (c) must
2-14 specify:
2-15 (1) the tax rate that the governing body proposes to
2-16 adopt;
2-17 (2) the date, time, and location of the meeting of the
2-18 governing body of the taxing unit at which the governing body will
2-19 consider adopting the proposed tax rate; and
2-20 (3) if the proposed tax rate for the taxing unit
2-21 exceeds the unit's effective tax rate calculated as provided by
2-22 this chapter, a statement substantially identical to the
2-23 following: "The proposed tax rate would increase total taxes in
2-24 (name of taxing unit) by (percentage by which the proposed tax rate
2-25 exceeds the effective tax rate)."
2-26 SECTION 2. Section 26.04(e), Tax Code, is amended to read as
2-27 follows:
3-1 (e) By August 7 or as soon thereafter as practicable, the
3-2 designated officer or employee shall submit the rates to the
3-3 governing body. He shall deliver by mail to each property owner in
3-4 the unit or publish in a newspaper in the form prescribed by the
3-5 comptroller:
3-6 (1) the effective tax rate, the rollback tax rate, and
3-7 an explanation of how they were calculated;
3-8 (2) the estimated amount of interest and sinking fund
3-9 balances and the estimated amount of maintenance and operation or
3-10 general fund balances remaining at the end of the current fiscal
3-11 year that are not encumbered with or by corresponding existing debt
3-12 obligation, except that for a school district, estimated funds
3-13 necessary for the operation of the district prior to the receipt of
3-14 the first state education aid payment in the succeeding school year
3-15 shall be subtracted from the estimated fund balances;
3-16 (3) a schedule of the unit's debt obligations showing:
3-17 (A) the amount of principal and interest that
3-18 will be paid to service the unit's debts in the next year from
3-19 property tax revenue, including payments of lawfully incurred
3-20 contractual obligations providing security for the payment of the
3-21 principal of and interest on bonds and other evidences of
3-22 indebtedness issued on behalf of the unit by another political
3-23 subdivision;
3-24 (B) the amount by which taxes imposed for debt
3-25 are to be increased because of the unit's anticipated collection
3-26 rate; and
3-27 (C) the total of the amounts listed in
4-1 Paragraphs (A)-(B), less any amount collected in excess of the
4-2 previous year's anticipated collections certified as provided in
4-3 Subsection (b) of this section; and
4-4 (4) the amount of additional sales and use tax revenue
4-5 anticipated in calculations under Section 26.041 of this code.
4-6 SECTION 3. The importance of this legislation and the
4-7 crowded condition of the calendars in both houses create an
4-8 emergency and an imperative public necessity that the
4-9 constitutional rule requiring bills to be read on three several
4-10 days in each house be suspended, and this rule is hereby suspended,
4-11 and that this Act take effect and be in force from and after its
4-12 passage, and it is so enacted.