1-1 By: Junell (Senate Sponsor - Sims) H.B. No. 155
1-2 (In the Senate - Received from the House March 11, 1993;
1-3 March 15, 1993, read first time and referred to Committee on
1-4 Finance; April 19, 1993, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 13, Nays 0;
1-6 April 19, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Montford x
1-10 Turner x
1-11 Armbrister x
1-12 Barrientos x
1-13 Bivins x
1-14 Ellis x
1-15 Haley x
1-16 Moncrief x
1-17 Parker x
1-18 Ratliff x
1-19 Sims x
1-20 Truan x
1-21 Zaffirini x
1-22 COMMITTEE SUBSTITUTE FOR H.B. No. 155 By: Sims
1-23 A BILL TO BE ENTITLED
1-24 AN ACT
1-25 relating to submission and publication of ad valorem tax rates.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Chapter 26, Tax Code, is amended by adding
1-28 Section 26.052 to read as follows:
1-29 Sec. 26.052. SIMPLIFIED TAX RATE NOTICE FOR SMALL TAXING
1-30 UNITS. (a) This section applies only to a taxing unit for which
1-31 the total tax rate proposed for the current tax year:
1-32 (1) is five cents or less on each $100 valuation of
1-33 taxable property;
1-34 (2) would impose taxes of $150,000 or less when
1-35 applied to the total taxable value of property taxable by the
1-36 taxing unit according to the appraisal roll for the current tax
1-37 year; and
1-38 (3) is greater than 103% of the effective tax rate
1-39 calculated as provided by Section 26.04.
1-40 (b) A taxing unit to which this section applies is exempt
1-41 from the publication requirements of Section 26.04(e) and is not
1-42 subject to an injunction under Section 26.04(g) for failure to
1-43 comply with those publication requirements.
1-44 (c) A taxing unit to which this section applies may provide
1-45 public notice of its proposed tax rate in either of the following
1-46 methods not later than the seventh day before the date on which the
1-47 tax rate is adopted:
1-48 (1) mailing a notice of the proposed tax rate to each
1-49 owner of taxable property in the taxing unit; or
1-50 (2) publishing notice of the proposed tax rate in the
1-51 legal notices section of a newspaper having general circulation in
1-52 the taxing unit.
1-53 (d) A taxing unit that provides notice of a proposed tax
1-54 rate under Subsection (c) is exempt from Sections 26.05(d) and
1-55 26.06 and is not subject to an injunction under Section 26.05(e)
1-56 for failure to comply with Section 26.05(d). A taxing unit that
1-57 provides notice of a proposed tax rate under Subsection (c) may not
1-58 adopt a tax rate that exceeds the rate set out in the notice unless
1-59 the taxing unit provides additional notice under Subsection (c) of
1-60 the higher rate or complies with Sections 26.05(d) and 26.06 in
1-61 adopting the higher rate.
1-62 (e) Public notice provided under Subsection (c) must
1-63 specify:
1-64 (1) the tax rate that the governing body proposes to
1-65 adopt;
1-66 (2) the date, time, location of the meeting of the
1-67 governing body of the taxing unit at which the governing body will
1-68 consider adopting the proposed tax rate; and
2-1 (3) if the proposed tax rate for the taxing unit
2-2 exceeds 103% of the unit's effective tax rate calculated as
2-3 provided by this chapter, a statement substantially identical to
2-4 the following: "The proposed tax rate would increase total taxes
2-5 in (name of taxing unit) by (percentage by which the proposed tax
2-6 rate exceeds the effective tax rate)."
2-7 SECTION 2. Section 26.04(d), Tax Code, is amended to read as
2-8 follows:
2-9 (e) By August 7 or as soon thereafter as practicable, the
2-10 designated officer or employee shall submit the rates to the
2-11 governing body. He shall deliver by mail to each property owner in
2-12 the unit or publish in a newspaper in the form prescribed by the
2-13 comptroller:
2-14 (1) the effective tax rate, the rollback tax rate, and
2-15 an explanation of how they were calculated;
2-16 (2) the estimated amount of interest and sinking fund
2-17 balances and the estimated amount of maintenance and operation or
2-18 general fund balances remaining at the end of the current fiscal
2-19 year that are not encumbered with or by corresponding existing debt
2-20 obligation, except that for a school district, estimated funds
2-21 necessary for the operation of the district prior to the receipt of
2-22 the first state education aid payment in the succeeding school year
2-23 shall be subtracted from the estimated fund balances;
2-24 (3) a schedule of the unit's debt obligations showing:
2-25 (A) the amount of principal and interest that
2-26 will be paid to service the unit's debts in the next year from
2-27 property tax revenue, including payments of lawfully incurred
2-28 contractual obligations providing security for the payment of the
2-29 principal of and interest on bonds and other evidences of
2-30 indebtedness issued on behalf of the unit by another political
2-31 subdivision;
2-32 (B) the amount by which taxes imposed for debt
2-33 are to be increased because of the unit's anticipated collection
2-34 rate; and
2-35 (C) the total of the amounts listed in
2-36 Paragraphs (A)-(B), less any amount collected in excess of the
2-37 previous year's anticipated collections certified as provided in
2-38 Subsection (b) of this section; and
2-39 (4) the amount of additional sales and use tax revenue
2-40 anticipated in calculations under Section 26.041 of this code.
2-41 SECTION 3. The importance of this legislation and the
2-42 crowded condition of the calendars in both houses create an
2-43 emergency and an imperative public necessity that the
2-44 constitutional rule requiring bills to be read on three several
2-45 days in each house be suspended, and this rule is hereby suspended,
2-46 and that this Act take effect and be in force from and after its
2-47 passage, and it is so enacted.
2-48 * * * * *
2-49 Austin,
2-50 Texas
2-51 April 19, 1993
2-52 Hon. Bob Bullock
2-53 President of the Senate
2-54 Sir:
2-55 We, your Committee on Finance to which was referred H.B. No. 155,
2-56 have had the same under consideration, and I am instructed to
2-57 report it back to the Senate with the recommendation that it do not
2-58 pass, but that the Committee Substitute adopted in lieu thereof do
2-59 pass and be printed.
2-60 Montford,
2-61 Chairman
2-62 * * * * *
2-63 WITNESSES
2-64 FOR AGAINST ON
2-65 ___________________________________________________________________
2-66 Name: Scott K. Joslove x
2-67 Representing: Texas Municipal League
2-68 City: Austin
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