H.B. No. 155
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;
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; and
1-15 (3) is greater than 103 percent of the effective tax
1-16 rate calculated as provided by Section 26.04.
1-17 (b) A taxing unit to which this section applies is exempt
1-18 from the publication requirements of Section 26.04(e) and is not
1-19 subject to an injunction under Section 26.04(g) for failure to
1-20 comply with those publication requirements.
1-21 (c) A taxing unit to which this section applies may provide
1-22 public notice of its proposed tax rate in either of the following
1-23 methods not later than the seventh day before the date on which the
1-24 tax rate is adopted:
2-1 (1) mailing a notice of the proposed tax rate to each
2-2 owner of taxable property in the taxing unit; or
2-3 (2) publishing notice of the proposed tax rate in the
2-4 legal notices section of a newspaper having general circulation in
2-5 the taxing unit.
2-6 (d) A taxing unit that provides notice of a proposed tax
2-7 rate under Subsection (c) is exempt from Sections 26.05(d) and
2-8 26.06 and is not subject to an injunction under Section 26.05(e)
2-9 for failure to comply with Section 26.05(d). A taxing unit that
2-10 provides notice of a proposed tax rate under Subsection (c) may not
2-11 adopt a tax rate that exceeds the rate set out in the notice unless
2-12 the taxing unit provides additional notice under Subsection (c) of
2-13 the higher rate or complies with Sections 26.05(d) and 26.06 in
2-14 adopting the higher rate.
2-15 (e) Public notice provided under Subsection (c) must
2-16 specify:
2-17 (1) the tax rate that the governing body proposes to
2-18 adopt;
2-19 (2) the date, time, location of the meeting of the
2-20 governing body of the taxing unit at which the governing body will
2-21 consider adopting the proposed tax rate; and
2-22 (3) if the proposed tax rate for the taxing unit
2-23 exceeds 103 percent of the unit's effective tax rate calculated as
2-24 provided by this chapter, a statement substantially identical to
2-25 the following: "The proposed tax rate would increase total taxes
2-26 in (name of taxing unit) by (percentage by which the proposed tax
2-27 rate exceeds the effective tax rate)."
3-1 SECTION 2. Section 26.04(e), Tax Code, is amended to read as
3-2 follows:
3-3 (e) By August 7 or as soon thereafter as practicable, the
3-4 designated officer or employee shall submit the rates to the
3-5 governing body. He shall deliver by mail to each property owner in
3-6 the unit or publish in a newspaper in the form prescribed by the
3-7 comptroller:
3-8 (1) the effective tax rate, the rollback tax rate, and
3-9 an explanation of how they were calculated;
3-10 (2) the estimated amount of interest and sinking fund
3-11 balances and the estimated amount of maintenance and operation or
3-12 general fund balances remaining at the end of the current fiscal
3-13 year that are not encumbered with or by corresponding existing debt
3-14 obligation, except that for a school district, estimated funds
3-15 necessary for the operation of the district prior to the receipt of
3-16 the first state education aid payment in the succeeding school year
3-17 shall be subtracted from the estimated fund balances;
3-18 (3) a schedule of the unit's debt obligations showing:
3-19 (A) the amount of principal and interest that
3-20 will be paid to service the unit's debts in the next year from
3-21 property tax revenue, including payments of lawfully incurred
3-22 contractual obligations providing security for the payment of the
3-23 principal of and interest on bonds and other evidences of
3-24 indebtedness issued on behalf of the unit by another political
3-25 subdivision;
3-26 (B) the amount by which taxes imposed for debt
3-27 are to be increased because of the unit's anticipated collection
4-1 rate; and
4-2 (C) the total of the amounts listed in
4-3 Paragraphs (A)-(B), less any amount collected in excess of the
4-4 previous year's anticipated collections certified as provided in
4-5 Subsection (b) of this section; and
4-6 (4) the amount of additional sales and use tax revenue
4-7 anticipated in calculations under Section 26.041 of this code.
4-8 SECTION 3. The importance of this legislation and the
4-9 crowded condition of the calendars in both houses create an
4-10 emergency and an imperative public necessity that the
4-11 constitutional rule requiring bills to be read on three several
4-12 days in each house be suspended, and this rule is hereby suspended,
4-13 and that this Act take effect and be in force from and after its
4-14 passage, and it is so enacted.