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 2-69 -------------------------------------------------------------------