1-1 By: Whitmire S.B. No. 1614
1-2 (In the Senate - Filed March 22, 1995; March 23, 1995, read
1-3 first time and referred to Committee on Finance; April 7, 1995,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 9, Nays 0; April 7, 1995, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1614 By: Brown
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the repeal or the reduction of the amount of certain
1-10 residence homestead exemptions from ad valorem taxation.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (f), Section 11.13, Tax Code, is
1-13 amended to read as follows:
1-14 (f) Once authorized, an exemption adopted as provided by
1-15 Subsection (d) of this section may be <repealed or decreased or>
1-16 increased in amount by the governing body of the taxing unit or by
1-17 the procedure authorized by Subdivision (2) of Subsection (d) of
1-18 this section and may be repealed or reduced in amount only in the
1-19 manner prescribed by Section 11.135. In the case of a decrease,
1-20 the amount of the exemption may not be reduced to less than $3,000
1-21 of the market value.
1-22 SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by
1-23 adding Section 11.135 to read as follows:
1-24 Sec. 11.135. REPEAL OR REDUCTION OF AMOUNT OF CERTAIN
1-25 RESIDENCE HOMESTEAD EXEMPTIONS. (a) The governing body of a
1-26 taxing unit may not repeal or reduce the amount of an exemption
1-27 adopted under Section 11.13(d) or (n) without first receiving a
1-28 majority vote in favor of the repeal or reduction at an election
1-29 held in the taxing unit. Before calling the election, the
1-30 governing body must hold a public hearing on the repeal or
1-31 reduction. The governing body must give notice of the hearing not
1-32 later than the seventh day before the date the hearing is held.
1-33 (b) The notice of the hearing may not be smaller than
1-34 one-quarter page of a standard-size or a tabloid-size newspaper,
1-35 and the headline on the notice must be in 18-point or larger type.
1-36 The notice must be in the following form:
1-37 "NOTICE OF PUBLIC HEARING ON (REPEAL OR REDUCTION
1-38 OF AMOUNT) OF RESIDENCE HOMESTEAD EXEMPTION
1-39 The (name of taxing unit) will hold a public
1-40 hearing on a proposal to (repeal or reduce the amount
1-41 of) the residence homestead exemption authorized by
1-42 (Section 11.13(d) or (n), Tax Code). Homeowners
1-43 receiving this exemption will suffer a tax increase if
1-44 the exemption is repealed or reduced. Repeal or
1-45 reduction of the amount of the exemption will shift the
1-46 tax burden from other property owners to homeowners.
1-47 The public hearing will be held on (date and
1-48 time) at (meeting place).
1-49 (Name of each member of the governing body,
1-50 showing how the member voted on the motion to consider
1-51 the repeal or reduction of the amount of the exemption
1-52 or that the member was absent.)"
1-53 (c) The notice shall be:
1-54 (1) delivered by mail to each property owner in the
1-55 taxing unit receiving the exemption according to the current
1-56 appraisal roll; or
1-57 (2) published in a part of a newspaper other than the
1-58 part in which legal notices and classified advertisements appear.
1-59 (d) The hearing must be held:
1-60 (1) on a weekday that is not a holiday; and
1-61 (2) in the taxing unit in a publicly owned building
1-62 or, if a suitable publicly owned building is not available, in a
1-63 suitable building to which the public normally has access.
1-64 (e) At the hearing, the governing body shall:
1-65 (1) afford adequate opportunity for proponents and
1-66 opponents of the repeal or reduction to present their views; and
1-67 (2) announce the date, time, and place of the meeting
1-68 at which it will vote on the repeal or reduction.
2-1 (f) After the hearing, the governing body shall give notice
2-2 of the meeting at which it will vote to repeal or reduce the amount
2-3 of the exemption. The notice of the meeting may not be smaller
2-4 than one-quarter page of a standard-size or a tabloid-size
2-5 newspaper, and the headline on the notice must be in 18-point or
2-6 larger type. The notice must be in the following form:
2-7 "NOTICE OF VOTE TO (REPEAL OR REDUCE) RESIDENCE
2-8 HOMESTEAD EXEMPTION
2-9 The (name of taxing unit) held a public hearing
2-10 on a proposal to (repeal or reduce) the residence
2-11 homestead exemption authorized by (Section 11.13(d) or
2-12 (n), Tax Code). Homeowners receiving this exemption
2-13 will suffer a tax increase if the exemption is repealed
2-14 or reduced in amount. Repeal or reduction of the
2-15 amount of the exemption will shift the tax burden from
2-16 other property owners to homeowners.
2-17 The (governing body of the taxing unit) is
2-18 scheduled to vote to (repeal or reduce the amount of)
2-19 the homestead exemption on (date and time) at (meeting
2-20 place).
2-21 (Name of each member of the governing body,
2-22 showing how the member voted on the motion to repeal or
2-23 reduce the amount of the exemption or that the member
2-24 was absent.)"
2-25 (g) The meeting to vote to repeal or reduce the amount of
2-26 the exemption may not be held earlier than the third day or later
2-27 than the 14th day after the date of the public hearing. The
2-28 meeting must be held in the taxing unit in a publicly owned
2-29 building or, if a suitable publicly owned building is not
2-30 available, in a suitable building to which the public normally has
2-31 access. If the governing body does not vote to repeal or reduce
2-32 the amount of the exemption before the 15th day after the date of
2-33 the public hearing, it must give a new notice under Subsection
2-34 (e)(2) before it may vote on the repeal or reduction.
2-35 (h) If the governing body votes to repeal or reduce the
2-36 amount of the exemption, the governing body shall order the
2-37 election to be held in the taxing unit on a date not less than 30
2-38 or more than 90 days after the date on which it voted to repeal or
2-39 reduce the amount of the exemption. At the election, the ballots
2-40 shall be prepared to permit voting for or against the proposition:
2-41 "(Repealing or reducing to $____ or ____ percent) the residence
2-42 homestead exemption authorized by (Section 11.13(d) or (n), Tax
2-43 Code) and increasing taxes on homeowners."
2-44 (i) If a majority of the votes cast in the election favor
2-45 the proposition, the repeal or reduction in the amount of the
2-46 residence homestead exemption takes effect on January 1 of the
2-47 succeeding year.
2-48 SECTION 3. This Act takes effect September 1, 1995.
2-49 SECTION 4. The importance of this legislation and the
2-50 crowded condition of the calendars in both houses create an
2-51 emergency and an imperative public necessity that the
2-52 constitutional rule requiring bills to be read on three several
2-53 days in each house be suspended, and this rule is hereby suspended.
2-54 * * * * *