By Nixon H.B. No. 173
75R1689 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the procedures for adoption of an annual ad valorem tax
1-3 rate by the governing body of a taxing unit.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 26.05(d), Tax Code, is amended to read as
1-6 follows:
1-7 (d) The governing body may not adopt a tax rate that exceeds
1-8 the lower of the rollback tax rate or [103 percent of] the
1-9 effective tax rate calculated as provided by Section 26.04 or any
1-10 other applicable section of this chapter [code] until it has held a
1-11 public hearing on the proposed increase and has otherwise complied
1-12 with Section 26.06 of this code. The governing body of a taxing
1-13 unit shall reduce a tax rate set by law or by vote of the
1-14 electorate to the lower of the rollback tax rate or [103 percent
1-15 of] the effective tax rate and may not adopt a higher rate unless
1-16 it first complies with Section 26.06 of this code.
1-17 SECTION 2. Section 26.052, Tax Code, is repealed.
1-18 SECTION 3. This Act takes effect January 1, 1998, and
1-19 applies only to the adoption by the governing body of a taxing unit
1-20 of an ad valorem tax rate for a tax year that begins on or after
1-21 that date. The adoption of an ad valorem tax rate for a tax year
1-22 that began before January 1, 1998, is governed by the law in effect
1-23 when the governing body of the taxing unit adopted the tax rate for
1-24 that tax year and the former law is continued in effect for that
2-1 purpose.
2-2 SECTION 4. The importance of this legislation and the
2-3 crowded condition of the calendars in both houses create an
2-4 emergency and an imperative public necessity that the
2-5 constitutional rule requiring bills to be read on three several
2-6 days in each house be suspended, and this rule is hereby suspended.