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.