By Holzheauser H.B. No. 3482
75R7618 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the requirement that a taxing unit proposing to
1-3 increase total ad valorem tax revenues hold a public hearing on the
1-4 increase.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 26.05(d), Tax Code, is amended to read as
1-7 follows:
1-8 (d) The governing body may not adopt a tax rate that if
1-9 applied to the total taxable value would impose an amount of taxes
1-10 that exceeds last year's levy [exceeds the lower of the rollback
1-11 tax rate or 103 percent of the effective tax rate calculated as
1-12 provided by Section 26.04 of this code] until it has held a public
1-13 hearing [on the proposed increase] and has otherwise complied with
1-14 Section 26.06 [of this code]. [The governing body of a taxing unit
1-15 shall reduce a tax rate set by law or by vote of the electorate to
1-16 the lower of the rollback tax rate or 103 percent of the effective
1-17 tax rate and may not adopt a higher rate unless it first complies
1-18 with Section 26.06 of this code.]
1-19 SECTION 2. Section 26.052, Tax Code, is repealed.
1-20 SECTION 3. Section 26.06(b), as amended by Chapters 456 and
1-21 947, Acts of the 70th Legislature, Regular Session, 1987, is
1-22 amended to read as follows:
1-23 (b) The notice of a public hearing may not be smaller than
1-24 one-quarter page of a standard-size or a tabloid-size newspaper,
2-1 and the headline on the notice must be in 18-point or larger type.
2-2 The notice must:
2-3 (1) contain a statement in the following form:
2-4 "NOTICE OF PUBLIC HEARING ON TAX [RATE] INCREASE
2-5 "The (name of the taxing unit) will hold a public hearing on
2-6 a proposal to increase total tax revenues from properties on the
2-7 tax roll [in (the preceding year)] by (percentage by which taxes to
2-8 be imposed under proposed tax rate exceed last year's levy [of
2-9 increase over the lower of the effective or rollback tax rates])
2-10 percent. Your individual taxes may increase [at a greater or
2-11 lesser rate,] or [even] decrease, depending on the change in the
2-12 taxable value of your property in relation to the change in taxable
2-13 value of all other property and the tax rate that is adopted.
2-14 "The public hearing will be held on (date and time) at
2-15 (meeting place).
2-16 "(Names of all members of the governing body, showing how
2-17 each voted on the proposal to consider the [tax] increase in total
2-18 tax revenues or, if one or more were absent, [or] indicating the
2-19 absences.)"; and
2-20 (2) contain the following information:
2-21 (A) the unit's adopted tax rate for the
2-22 preceding year and the proposed tax rate, expressed as an amount
2-23 per $100;
2-24 (B) the difference, expressed as an amount per
2-25 $100 and as a percent increase or decrease, as applicable, in the
2-26 proposed tax rate compared to the adopted tax rate for the
2-27 preceding year;
3-1 (C) the average appraised value of a residence
3-2 homestead in the taxing unit in the preceding year and in the
3-3 current year; the unit's homestead exemption, other than an
3-4 exemption available only to disabled persons or persons 65 years of
3-5 age or older, applicable to that appraised value in each of those
3-6 years; and the average taxable value of a residence homestead in
3-7 the unit in each of those years, disregarding any homestead
3-8 exemption available only to disabled persons or persons 65 years of
3-9 age or older;
3-10 (D) the amount of tax that would have been
3-11 imposed by the unit in the preceding year on a residence homestead
3-12 appraised at the average appraised value of a residence homestead
3-13 in that year, disregarding any homestead exemption available only
3-14 to disabled persons or persons 65 years of age or older;
3-15 (E) the amount of tax that would be imposed by
3-16 the unit in the current year on a residence homestead appraised at
3-17 the average appraised value of a residence homestead in the current
3-18 year, disregarding any homestead exemption available only to
3-19 disabled persons or persons 65 years of age or older, if the
3-20 proposed tax rate is adopted; and
3-21 (F) the difference between the amounts of tax
3-22 calculated under Paragraphs (D) and (E) of this subdivision,
3-23 expressed in dollars and cents and described as the annual increase
3-24 or decrease, as applicable, in the tax to be imposed by the unit on
3-25 the average residence homestead in the unit in the current year if
3-26 the proposed tax rate is adopted.
3-27 SECTION 4. Sections 26.06(d), (e), and (g), Tax Code, are
4-1 amended to read as follows:
4-2 (d) At the public hearing the governing body shall announce
4-3 the date, time, and place of the meeting at which it will vote on
4-4 the proposed increase in total tax revenues [rate increase]. After
4-5 the hearing it shall give notice of the meeting at which it will
4-6 vote on the proposed increase in total tax revenues [rate] and the
4-7 notice shall be in the same form as prescribed by Subsections (b)
4-8 and (c) [of this section], except that it must state the following:
4-9 "NOTICE OF VOTE ON TAX RATE
4-10 "The (name of the taxing unit) conducted a public hearing on
4-11 a proposal to increase the total tax revenues of the (name of the
4-12 taxing unit) [your property taxes] by (percentage by which taxes to
4-13 be imposed under proposed tax rate exceed last year's levy [of
4-14 increase over the lower of the effective tax rate or rollback tax
4-15 rate]) percent on (date and time public hearing was conducted).
4-16 "The (governing body of the taxing unit) is scheduled to vote
4-17 on the tax rate that will result in that tax increase at a public
4-18 meeting to be held on (date and time) at (meeting place)."
4-19 (e) The meeting to vote on the increase may not be earlier
4-20 than the third day or later than the 14th day after the date of the
4-21 public hearing. The meeting must be held inside the boundaries of
4-22 the unit in a publicly owned building or, if a suitable publicly
4-23 owned building is not available, in a suitable building to which
4-24 the public normally has access. If the governing body does not
4-25 adopt a [an increased] rate that would impose an amount of taxes
4-26 that exceeds last year's levy by the 14th day, it must give a new
4-27 notice under Subsection (d) [of this section] before it may adopt a
5-1 rate that would impose an amount of taxes that exceeds last year's
5-2 levy [exceeds the tax rate calculated as provided by Section 26.04
5-3 of this code].
5-4 (f) [(g)] The comptroller by rule shall prescribe the
5-5 language and format to be used in the part of the notice required
5-6 by Subsection (b)(2) [of this section]. A notice under Subsection
5-7 (b) is not valid if it does not substantially conform to the
5-8 language and format prescribed by the comptroller under this
5-9 subsection.
5-10 SECTION 5. This Act takes effect January 1, 1998.
5-11 SECTION 6. The importance of this legislation and the
5-12 crowded condition of the calendars in both houses create an
5-13 emergency and an imperative public necessity that the
5-14 constitutional rule requiring bills to be read on three several
5-15 days in each house be suspended, and this rule is hereby suspended.