SRC-AXB S.B. 693 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 693
76R2597  SMH-DBy: Cain
State Affairs
3/23/1999
As Filed


DIGEST 

Currently, a taxing entity is required to hold a public hearing before the
adoption of a tax rate which exceeds the preceding year's rate.  However,
while the Texas Constitution allows taxing entities to exclude new or
annexed property from the calculation of the preceding year's levy, the Tax
Code prohibits the consideration of new or annexed property.  S.B. 693
would fix the conflict between sections in the law and clarify the
effective tax rate changes which require public hearings. 

PURPOSE

As proposed, S.B. 693 clarifies the effective tax rate changes which
require public hearings. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 26.05(d), Tax Code, to prohibit a governing body
from adopting a tax rate which exceeds the effective tax rate calculated as
provided by Section 26.04, rather than one which exceeds last year's levy,
until the governing body, rather than it, has completed certain actions. 

SECTION 2.  Amends Sections 26.06(a), (b), (d), and (e), Tax Code, to
prohibit a public hearing required by Section 26.05 on a proposed tax
increase before a certain deadline. Sets forth changes to required public
statement regarding a hearing on tax increase:  specifies that properties
on the tax roll in the preceding year are the subject of the hearing's
proposal; provides that property owners' individual taxes are subject to
increase at a greater or lesser rate, or even decrease, depending on
changes in the taxable value of property; and provides that the public
statement show how each member of the governing body voted on the proposal
to consider the tax increase, rather than the increase in total tax
revenues.  Requires the governing body to give notice of a certain meeting.
Deletes text regarding increasing total tax revenues.  Makes conforming
changes. 

SECTION 3.  Amends Section 25.19(b), Tax Code, to require the chief
appraiser to include a statement prohibiting the governing body from
adopting a tax revenue rate increase for operating purposes from properties
taxed in, rather than above tax revenues for, the proceeding year without
previous public notification. 

SECTION 4.  (a)  Effective date:  September 1, 1999.

(b)  Provides that this Act applies only to an ad valorem tax rate
beginning on or after January 1, 2000, except as provided by Subsection
(c). 

(c)  Provides that this Act applies to an ad valorem tax rate adopted by a
taxing unit for the 1999 tax year, unless the taxing unit takes certain
actions before this Act's effective date. 

SECTION 5.  Emergency clause.