By Uher, Bonnen H.B. No. 954
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the notice and public hearing requirements for a taxing
1-3 unit to increase the unit's tax rate.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 26.04(e), Tax Code, is amended to read as
1-6 follows:
1-7 (e) By August 7 or as soon thereafter as practicable, the
1-8 designated officer or employee shall submit the rates to the
1-9 governing body. He shall deliver by mail to each property owner in
1-10 the unit or publish in a newspaper in the form prescribed by the
1-11 comptroller:
1-12 (1) the effective tax rate, the rollback tax rate, and
1-13 an explanation of how they were calculated;
1-14 (2) the estimated amount of interest and sinking fund
1-15 balances and the estimated amount of maintenance and operation or
1-16 general fund balances remaining at the end of the current fiscal
1-17 year that are not encumbered with or by corresponding existing debt
1-18 obligation, except that for a school district, estimated funds
1-19 necessary for the operation of the district prior to the receipt of
1-20 the first state education aid payment in the succeeding school year
1-21 shall be subtracted from the estimated fund balances;
1-22 (3) a schedule of the unit's debt obligations showing:
1-23 (A) the amount of principal and interest that
1-24 will be paid to service the unit's debts in the next year from
2-1 property tax revenue, including payments of lawfully incurred
2-2 contractual obligations providing security for the payment of the
2-3 principal of and interest on bonds and other evidences of
2-4 indebtedness issued on behalf of the unit by another political
2-5 subdivision and, if the unit is created under Section 52, Article
2-6 III, or Section 59, Article XVI, Texas Constitution, payments on
2-7 debts that the unit anticipates to incur in the next calendar year;
2-8 (B) the amount by which taxes imposed for debt
2-9 are to be increased because of the unit's anticipated collection
2-10 rate; and
2-11 (C) the total of the amounts listed in
2-12 Paragraphs (A)-(B), less any amount collected in excess of the
2-13 previous year's anticipated collections certified as provided in
2-14 Subsection (b);
2-15 (4) the amount of additional sales and use tax revenue
2-16 anticipated in calculations under Section 26.041;
2-17 (5) a statement that the adoption of a tax rate equal
2-18 to the effective tax rate would result in an increase or decrease,
2-19 as applicable, in the amount of taxes imposed by the unit as
2-20 compared to last year's levy, and the amount of the increase or
2-21 decrease;
2-22 (6) in the year that a taxing unit calculates an
2-23 adjustment under Subsection (i) or (j), [the unit shall publish] a
2-24 schedule that includes the following elements:
2-25 (A) the name of the unit discontinuing the
2-26 department, function, or activity;
2-27 (B) the amount of property tax revenue spent by
3-1 the unit listed under Paragraph (A) to operate the discontinued
3-2 department, function, or activity in the 12 months preceding the
3-3 month in which the calculations required by this chapter are made;
3-4 and
3-5 (C) the name of the unit that operates a
3-6 distinct department, function, or activity in all or a majority of
3-7 the territory of a taxing unit that has discontinued operating the
3-8 distinct department, function, or activity; and
3-9 (7) [(6)] in the year following the year in which a
3-10 taxing unit raised its rollback rate as required by Subsection (j),
3-11 [the taxing unit shall publish] a schedule that includes the
3-12 following elements:
3-13 (A) the amount of property tax revenue spent by
3-14 the unit to operate the department, function, or activity for which
3-15 the taxing unit raised the rollback rate as required by Subsection
3-16 (j) for the 12 months preceding the month in which the calculations
3-17 required by this chapter are made; and
3-18 (B) the amount published by the unit in the
3-19 preceding tax year under Subdivision (6)(B) [(5)(B)].
3-20 SECTION 2. Section 26.05(d), Tax Code, is amended to read as
3-21 follows:
3-22 (d) The governing body may not adopt a tax rate that exceeds
3-23 the lower of the rollback tax rate or 103 percent of the effective
3-24 tax rate calculated as provided by this chapter [if applied to the
3-25 total taxable value would impose an amount of taxes that exceeds
3-26 last year's levy] until the governing body [it] has held a public
3-27 hearing on the proposed tax rate and has otherwise complied with
4-1 Section 26.06 and Section 26.065. The governing body of a taxing
4-2 unit shall reduce a tax rate set by law or by vote of the
4-3 electorate to the lower of the rollback tax rate or 103 percent of
4-4 the effective tax rate and may not adopt a higher rate unless it
4-5 first complies with Section 26.06.
4-6 SECTION 3. Sections 26.06(a), (b), (d), and (e), Tax Code,
4-7 are amended to read as follows:
4-8 (a) A public hearing required by Section 26.05 [of this
4-9 code] may not be held before the seventh day after the date the
4-10 notice of the public hearing on the proposed tax increase is given.
4-11 The hearing must be on a weekday that is not a public holiday. The
4-12 hearing must be held inside the boundaries of the unit in a
4-13 publicly owned building or, if a suitable publicly owned building
4-14 is not available, in a suitable building to which the public
4-15 normally has access. At the hearing, the governing body must
4-16 afford adequate opportunity for proponents and opponents of the tax
4-17 increase to present their views.
4-18 (b) The notice of a public hearing may not be smaller than
4-19 one-quarter page of a standard-size or a tabloid-size newspaper,
4-20 and the headline on the notice must be in 18-point or larger type.
4-21 The notice must:
4-22 (1) contain a statement in the following form:
4-23 "NOTICE OF PUBLIC HEARING ON TAX INCREASE
4-24 "The (name of the taxing unit) will hold a public hearing on
4-25 a proposal to increase total tax revenues from properties on the
4-26 tax roll in the preceding year by (percentage by which [taxes to be
4-27 imposed under] proposed tax rate exceeds lower of rollback tax rate
5-1 or effective tax rate calculated under this chapter [exceed last
5-2 year's levy]) percent. Your individual taxes may increase at a
5-3 greater or lesser rate, or even decrease, depending on the change
5-4 in the taxable value of your property in relation to the change in
5-5 taxable value of all other property and the tax rate that is
5-6 adopted.
5-7 "The public hearing will be held on (date and time) at
5-8 (meeting place).
5-9 "(Names of all members of the governing body, showing how
5-10 each voted on the proposal to consider the tax increase [in total
5-11 tax revenues] or, if one or more were absent, indicating the
5-12 absences.)"; and
5-13 (2) contain the following information:
5-14 (A) the unit's adopted tax rate for the
5-15 preceding year and the proposed tax rate, expressed as an amount
5-16 per $100;
5-17 (B) the difference, expressed as an amount per
5-18 $100 and as a percent increase or decrease, as applicable, in the
5-19 proposed tax rate compared to the adopted tax rate for the
5-20 preceding year;
5-21 (C) the average appraised value of a residence
5-22 homestead in the taxing unit in the preceding year and in the
5-23 current year; the unit's homestead exemption, other than an
5-24 exemption available only to disabled persons or persons 65 years of
5-25 age or older, applicable to that appraised value in each of those
5-26 years; and the average taxable value of a residence homestead in
5-27 the unit in each of those years, disregarding any homestead
6-1 exemption available only to disabled persons or persons 65 years of
6-2 age or older;
6-3 (D) the amount of tax that would have been
6-4 imposed by the unit in the preceding year on a residence homestead
6-5 appraised at the average appraised value of a residence homestead
6-6 in that year, disregarding any homestead exemption available only
6-7 to disabled persons or persons 65 years of age or older;
6-8 (E) the amount of tax that would be imposed by
6-9 the unit in the current year on a residence homestead appraised at
6-10 the average appraised value of a residence homestead in the current
6-11 year, disregarding any homestead exemption available only to
6-12 disabled persons or persons 65 years of age or older, if the
6-13 proposed tax rate is adopted; and
6-14 (F) the difference between the amounts of tax
6-15 calculated under Paragraphs (D) and (E), expressed in dollars and
6-16 cents and described as the annual increase or decrease, as
6-17 applicable, in the tax to be imposed by the unit on the average
6-18 residence homestead in the unit in the current year if the proposed
6-19 tax rate is adopted.
6-20 (d) At the public hearing the governing body shall announce
6-21 the date, time, and place of the meeting at which it will vote on
6-22 the proposed tax rate [to increase total tax revenues]. After the
6-23 hearing the governing body [it] shall give notice of the meeting at
6-24 which it will vote on the proposed tax rate [to increase total tax
6-25 revenues] and the notice shall be in the same form as prescribed by
6-26 Subsections (b) and (c), except that it must state the following:
6-27 "NOTICE OF VOTE ON TAX RATE
7-1 "The (name of the taxing unit) conducted a public hearing on
7-2 a proposal to increase the total tax revenues of the (name of the
7-3 taxing unit) from properties on the tax roll in the preceding year
7-4 by (percentage by which [taxes to be imposed under] proposed tax
7-5 rate exceeds lower of rollback tax rate or effective tax rate
7-6 calculated under this chapter [exceed last year's levy]) percent on
7-7 (date and time public hearing was conducted).
7-8 "The (governing body of the taxing unit) is scheduled to vote
7-9 on the tax rate that will result in that tax increase at a public
7-10 meeting to be held on (date and time) at (meeting place)."
7-11 (e) The meeting to vote on the tax increase may not be
7-12 earlier than the third day or later than the 14th day after the
7-13 date of the public hearing. The meeting must be held inside the
7-14 boundaries of the taxing unit in a publicly owned building or, if a
7-15 suitable publicly owned building is not available, in a suitable
7-16 building to which the public normally has access. If the governing
7-17 body does not adopt a tax rate that exceeds the lower of the
7-18 rollback tax rate or 103 percent of the effective tax rate [would
7-19 impose an amount of taxes that exceeds last year's levy] by the
7-20 14th day, it must give a new notice under Subsection (d) before it
7-21 may adopt a rate that exceeds the lower of the rollback tax rate or
7-22 103 percent of the effective tax rate [would impose an amount of
7-23 taxes that exceeds last year's levy].
7-24 SECTION 4. Section 25.19(b), Tax Code, is amended to read as
7-25 follows:
7-26 (b) The chief appraiser shall separate real from personal
7-27 property and include in the notice for each:
8-1 (1) a list of the taxing units in which the property
8-2 is taxable;
8-3 (2) the appraised value of the property in the
8-4 preceding year;
8-5 (3) the taxable value of the property in the preceding
8-6 year for each taxing unit taxing the property;
8-7 (4) the appraised value of the property for the
8-8 current year and the kind and amount of each partial exemption, if
8-9 any, approved for the current year;
8-10 (5) if the appraised value is greater than it was in
8-11 the preceding year:
8-12 (A) the effective tax rate that would be
8-13 announced pursuant to Chapter 26 if the total values being
8-14 submitted to the appraisal review board were to be approved by the
8-15 board with an explanation that that rate would raise the same
8-16 amount of revenue from property taxed in the preceding year as the
8-17 unit raised for those purposes in the preceding year;
8-18 (B) the amount of tax that would be imposed on
8-19 the property on the basis of the rate described by Paragraph (A);
8-20 and
8-21 (C) a statement that the governing body of the
8-22 unit may not adopt a rate that will increase tax revenues for
8-23 operating purposes from properties taxed in [above tax revenues
8-24 for] the preceding year without publishing notice in a newspaper
8-25 that it is considering a tax increase and holding a hearing for
8-26 taxpayers to discuss the tax increase;
8-27 (6) in italic typeface, the following statement: "The
9-1 Texas Legislature does not set the amount of your local taxes.
9-2 Your property tax burden is decided by your locally elected
9-3 officials, and all inquiries concerning your taxes should be
9-4 directed to those officials";
9-5 (7) a detailed explanation of the time and procedure
9-6 for protesting the value;
9-7 (8) the date and place the appraisal review board will
9-8 begin hearing protests; and
9-9 (9) a brief explanation that:
9-10 (A) the governing body of each taxing unit
9-11 decides whether or not taxes on the property will increase and the
9-12 appraisal district only determines the value of the property; and
9-13 (B) a taxpayer who objects to increasing taxes
9-14 and government expenditures should complain to the governing bodies
9-15 of the taxing units and only complaints about value should be
9-16 presented to the appraisal office and the appraisal review board.
9-17 SECTION 5. Chapter 26, Tax Code, is amended by adding
9-18 Section 26.065 to read as follows:
9-19 Sec. 26.065. SUPPLEMENTAL NOTICE OF HEARING ON TAX RATE
9-20 INCREASE. (a) In addition to the notice required under Section
9-21 26.06, the governing body of a taxing unit required to hold a
9-22 public hearing by Section 26.05(d) shall give notice of the hearing
9-23 in the manner provided by this section.
9-24 (b) If the taxing unit owns, operates, or controls an
9-25 Internet website, the unit shall post notice of the public hearing
9-26 on the website continuously for at least seven days immediately
9-27 before the public hearing on the proposed tax rate increase and at
10-1 least seven days immediately before the date of the vote proposing
10-2 the increase in the tax rate.
10-3 (c) If the taxing unit has free access to a television
10-4 channel, the taxing unit shall request that the station carry a
10-5 60-second notice of the public hearing at least five times a day
10-6 between the hours of 7 a.m. and 9 p.m. for at least seven days
10-7 immediately before the public hearing on the proposed tax rate
10-8 increase and at least seven days immediately before the date of the
10-9 vote proposing the increase in the tax rate.
10-10 (d) The notice of the public hearing required by Subsection
10-11 (b) must contain a statement that is substantially the same as the
10-12 statement required by Section 26.06(b)(1) and must contain
10-13 information that is substantially the same as the information
10-14 required by Section 26.06(b)(2).
10-15 (e) This section does not apply to a taxing unit if the
10-16 taxing unit:
10-17 (1) is unable to comply with the requirements of this
10-18 section because of the failure of an electronic or mechanical
10-19 device, including a computer or server; or
10-20 (2) is unable to comply with the requirements of this
10-21 section due to other circumstances beyond its control.
10-22 (f) A person who owns taxable property is not entitled to an
10-23 injunction restraining the collection of taxes by a taxing unit in
10-24 which the property is taxable if the taxing unit has, in good
10-25 faith, attempted to comply with the requirements of this section.
10-26 SECTION 6. (a) This Act takes effect January 1, 2000,
10-27 except as provided by Subsection (b) of this section.
11-1 (b) Section 26.065, Tax Code, as added by this Act, takes
11-2 effect January 1, 2001.
11-3 (c) The change in law made by this Act applies only to an ad
11-4 valorem tax rate adopted on or after the effective date applicable
11-5 to that provision of law.
11-6 SECTION 7. The importance of this legislation and the
11-7 crowded condition of the calendars in both houses create an
11-8 emergency and an imperative public necessity that the
11-9 constitutional rule requiring bills to be read on three several
11-10 days in each house be suspended, and this rule is hereby suspended.