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.