By Uher H.B. No. 954
76R1130 SMH-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 the unit's tax rate hold a public hearing on the proposal.
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 [if
1-8 applied to the total taxable value would impose an amount of taxes
1-9 that] exceeds the unit's tax rate for the preceding tax year [last
1-10 year's levy] until it has held a public hearing on the proposed
1-11 tax rate and has otherwise complied with Section 26.06.
1-12 SECTION 2. The heading to Section 26.06, Tax Code, is
1-13 amended to read as follows:
1-14 Sec. 26.06. NOTICE, HEARING, AND VOTE ON TAX RATE INCREASE.
1-15 SECTION 3. Sections 26.06(a), (b), (d), and (e), Tax Code,
1-16 are amended to read as follows:
1-17 (a) A public hearing required by Section 26.05 [of this
1-18 code] may not be held before the seventh day after the date the
1-19 notice of the public hearing on the proposed tax rate increase is
1-20 given. The hearing must be on a weekday that is not a public
1-21 holiday. The hearing must be held inside the boundaries of the
1-22 unit in a publicly owned building or, if a suitable publicly owned
1-23 building is not available, in a suitable building to which the
1-24 public normally has access. At the hearing, the governing body
2-1 must afford adequate opportunity for proponents and opponents of
2-2 the tax rate increase to present their views.
2-3 (b) The notice of a public hearing may not be smaller than
2-4 one-quarter page of a standard-size or a tabloid-size newspaper,
2-5 and the headline on the notice must be in 18-point or larger type.
2-6 The notice must:
2-7 (1) contain a statement in the following form:
2-8 "NOTICE OF PUBLIC HEARING ON TAX RATE INCREASE
2-9 "The (name of the taxing unit) will hold a public hearing on
2-10 a proposal to increase the tax rate [total tax revenues from
2-11 properties on the tax roll] by (percentage by which [taxes to be
2-12 imposed under] proposed tax rate exceeds the tax rate of the (name
2-13 of the taxing unit) for the preceding tax year [exceed last year's
2-14 levy]) percent. Your individual taxes may increase or decrease,
2-15 depending on the change in the taxable value of your property in
2-16 relation to the change in taxable value of all other property and
2-17 the tax rate that is adopted.
2-18 "The public hearing will be held on (date and time) at
2-19 (meeting place).
2-20 "(Names of all members of the governing body, showing how
2-21 each voted on the proposal to consider the increase in the tax rate
2-22 [total tax revenues] or, if one or more were absent, indicating the
2-23 absences.)"; and
2-24 (2) contain the following information:
2-25 (A) the unit's [adopted] tax rate for the
2-26 preceding year and the proposed tax rate, expressed as an amount
2-27 per $100;
3-1 (B) the difference, expressed as an amount per
3-2 $100 and as a percent increase or decrease, as applicable, in the
3-3 proposed tax rate compared to the [adopted] tax rate for the
3-4 preceding year;
3-5 (C) the average appraised value of a residence
3-6 homestead in the taxing unit in the preceding year and in the
3-7 current year; the unit's homestead exemption, other than an
3-8 exemption available only to disabled persons or persons 65 years of
3-9 age or older, applicable to that appraised value in each of those
3-10 years; and the average taxable value of a residence homestead in
3-11 the unit in each of those years, disregarding any homestead
3-12 exemption available only to disabled persons or persons 65 years of
3-13 age or older;
3-14 (D) the amount of tax that would have been
3-15 imposed by the unit in the preceding year on a residence homestead
3-16 appraised at the average appraised value of a residence homestead
3-17 in that year, disregarding any homestead exemption available only
3-18 to disabled persons or persons 65 years of age or older;
3-19 (E) the amount of tax that would be imposed by
3-20 the unit in the current year on a residence homestead appraised at
3-21 the average appraised value of a residence homestead in the current
3-22 year, disregarding any homestead exemption available only to
3-23 disabled persons or persons 65 years of age or older, if the
3-24 proposed tax rate is adopted; and
3-25 (F) the difference between the amounts of tax
3-26 calculated under Paragraphs (D) and (E), expressed in dollars and
3-27 cents and described as the annual increase or decrease, as
4-1 applicable, in the tax to be imposed by the unit on the average
4-2 residence homestead in the unit in the current year if the proposed
4-3 tax rate is adopted.
4-4 (d) At the public hearing the governing body shall announce
4-5 the date, time, and place of the meeting at which it will vote on
4-6 the proposed tax rate [to increase total tax revenues]. After the
4-7 hearing it shall give notice of the meeting at which it will vote
4-8 on the proposed tax rate [to increase total tax revenues and the
4-9 notice shall be] in the same form as prescribed by Subsections (b)
4-10 and (c), except that the notice [it] must state the following:
4-11 "NOTICE OF VOTE ON TAX RATE
4-12 "The (name of the taxing unit) conducted a public hearing on
4-13 a proposal to increase the tax rate [total tax revenues] of the
4-14 (name of the taxing unit) by (percentage by which [taxes to be
4-15 imposed under] proposed tax rate exceeds the tax rate of the (name
4-16 of the taxing unit) for the preceding tax year [exceed last year's
4-17 levy]) percent on (date and time public hearing was conducted).
4-18 "The (governing body of the taxing unit) is scheduled to vote
4-19 on the tax rate [that will result in that tax increase] at a public
4-20 meeting to be held on (date and time) at (meeting place)."
4-21 (e) The meeting to vote on the tax rate increase may not be
4-22 earlier than the third day or later than the 14th day after the
4-23 date of the public hearing. The meeting must be held inside the
4-24 boundaries of the taxing unit in a publicly owned building or, if a
4-25 suitable publicly owned building is not available, in a suitable
4-26 building to which the public normally has access. If the governing
4-27 body does not adopt a tax rate that exceeds the tax rate of the
5-1 taxing unit for the preceding tax year [would impose an amount of
5-2 taxes that exceeds last year's levy] by the 14th day, it must give
5-3 a new notice under Subsection (d) before it may adopt a rate that
5-4 exceeds the tax rate of the taxing unit for the preceding tax year
5-5 [would impose an amount of taxes that exceeds last year's levy].
5-6 SECTION 4. (a) This Act takes effect January 1, 2000.
5-7 (b) The change in law made by this Act applies only to an ad
5-8 valorem tax rate adopted on or after the effective date of this
5-9 Act.
5-10 SECTION 5. The importance of this legislation and the
5-11 crowded condition of the calendars in both houses create an
5-12 emergency and an imperative public necessity that the
5-13 constitutional rule requiring bills to be read on three several
5-14 days in each house be suspended, and this rule is hereby suspended.