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  Section 26.052, Tax Code, is repealed.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.