1-1 By: Uher, Bonnen (Senate Sponsor - Armbrister) H.B. No. 954
1-2 (In the Senate - Received from the House May 10, 1999;
1-3 May 10, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 14, 1999, reported favorably by
1-5 the following vote: Yeas 4, Nays 0; May 14, 1999, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the notice and public hearing requirements for a taxing
1-10 unit to increase the unit's tax rate.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 26.04(e), Tax Code, is amended to read as
1-13 follows:
1-14 (e) By August 7 or as soon thereafter as practicable, the
1-15 designated officer or employee shall submit the rates to the
1-16 governing body. He shall deliver by mail to each property owner in
1-17 the unit or publish in a newspaper in the form prescribed by the
1-18 comptroller:
1-19 (1) the effective tax rate, the rollback tax rate, and
1-20 an explanation of how they were calculated;
1-21 (2) the estimated amount of interest and sinking fund
1-22 balances and the estimated amount of maintenance and operation or
1-23 general fund balances remaining at the end of the current fiscal
1-24 year that are not encumbered with or by corresponding existing debt
1-25 obligation, except that for a school district, estimated funds
1-26 necessary for the operation of the district prior to the receipt of
1-27 the first state education aid payment in the succeeding school year
1-28 shall be subtracted from the estimated fund balances;
1-29 (3) a schedule of the unit's debt obligations showing:
1-30 (A) the amount of principal and interest that
1-31 will be paid to service the unit's debts in the next year from
1-32 property tax revenue, including payments of lawfully incurred
1-33 contractual obligations providing security for the payment of the
1-34 principal of and interest on bonds and other evidences of
1-35 indebtedness issued on behalf of the unit by another political
1-36 subdivision and, if the unit is created under Section 52, Article
1-37 III, or Section 59, Article XVI, Texas Constitution, payments on
1-38 debts that the unit anticipates to incur in the next calendar year;
1-39 (B) the amount by which taxes imposed for debt
1-40 are to be increased because of the unit's anticipated collection
1-41 rate; and
1-42 (C) the total of the amounts listed in
1-43 Paragraphs (A)-(B), less any amount collected in excess of the
1-44 previous year's anticipated collections certified as provided in
1-45 Subsection (b);
1-46 (4) the amount of additional sales and use tax revenue
1-47 anticipated in calculations under Section 26.041;
1-48 (5) a statement that the adoption of a tax rate equal
1-49 to the effective tax rate would result in an increase or decrease,
1-50 as applicable, in the amount of taxes imposed by the unit as
1-51 compared to last year's levy, and the amount of the increase or
1-52 decrease;
1-53 (6) in the year that a taxing unit calculates an
1-54 adjustment under Subsection (i) or (j), [the unit shall publish] a
1-55 schedule that includes the following elements:
1-56 (A) the name of the unit discontinuing the
1-57 department, function, or activity;
1-58 (B) the amount of property tax revenue spent by
1-59 the unit listed under Paragraph (A) to operate the discontinued
1-60 department, function, or activity in the 12 months preceding the
1-61 month in which the calculations required by this chapter are made;
1-62 and
1-63 (C) the name of the unit that operates a
1-64 distinct department, function, or activity in all or a majority of
2-1 the territory of a taxing unit that has discontinued operating the
2-2 distinct department, function, or activity; and
2-3 (7) [(6)] in the year following the year in which a
2-4 taxing unit raised its rollback rate as required by Subsection (j),
2-5 [the taxing unit shall publish] a schedule that includes the
2-6 following elements:
2-7 (A) the amount of property tax revenue spent by
2-8 the unit to operate the department, function, or activity for which
2-9 the taxing unit raised the rollback rate as required by Subsection
2-10 (j) for the 12 months preceding the month in which the calculations
2-11 required by this chapter are made; and
2-12 (B) the amount published by the unit in the
2-13 preceding tax year under Subdivision (6)(B) [(5)(B)].
2-14 SECTION 2. Section 26.05(d), Tax Code, is amended to read as
2-15 follows:
2-16 (d) The governing body may not adopt a tax rate that exceeds
2-17 the lower of the rollback tax rate or 103 percent of the effective
2-18 tax rate calculated as provided by this chapter [if applied to the
2-19 total taxable value would impose an amount of taxes that exceeds
2-20 last year's levy] until the governing body [it] has held a public
2-21 hearing on the proposed tax rate and has otherwise complied with
2-22 Section 26.06 and Section 26.065. The governing body of a taxing
2-23 unit shall reduce a tax rate set by law or by vote of the
2-24 electorate to the lower of the rollback tax rate or 103 percent of
2-25 the effective tax rate and may not adopt a higher rate unless it
2-26 first complies with Section 26.06.
2-27 SECTION 3. Sections 26.06(a), (b), (d), and (e), Tax Code,
2-28 are amended to read as follows:
2-29 (a) A public hearing required by Section 26.05 [of this
2-30 code] may not be held before the seventh day after the date the
2-31 notice of the public hearing on the proposed tax increase is given.
2-32 The hearing must be on a weekday that is not a public holiday. The
2-33 hearing must be held inside the boundaries of the unit in a
2-34 publicly owned building or, if a suitable publicly owned building
2-35 is not available, in a suitable building to which the public
2-36 normally has access. At the hearing, the governing body must
2-37 afford adequate opportunity for proponents and opponents of the tax
2-38 increase to present their views.
2-39 (b) The notice of a public hearing may not be smaller than
2-40 one-quarter page of a standard-size or a tabloid-size newspaper,
2-41 and the headline on the notice must be in 18-point or larger type.
2-42 The notice must:
2-43 (1) contain a statement in the following form:
2-44 "NOTICE OF PUBLIC HEARING ON TAX INCREASE
2-45 "The (name of the taxing unit) will hold a public hearing on
2-46 a proposal to increase total tax revenues from properties on the
2-47 tax roll in the preceding year by (percentage by which [taxes to be
2-48 imposed under] proposed tax rate exceeds lower of rollback tax rate
2-49 or effective tax rate calculated under this chapter [exceed last
2-50 year's levy]) percent. Your individual taxes may increase at a
2-51 greater or lesser rate, or even decrease, depending on the change
2-52 in the taxable value of your property in relation to the change in
2-53 taxable value of all other property and the tax rate that is
2-54 adopted.
2-55 "The public hearing will be held on (date and time) at
2-56 (meeting place).
2-57 "(Names of all members of the governing body, showing how
2-58 each voted on the proposal to consider the tax increase [in total
2-59 tax revenues] or, if one or more were absent, indicating the
2-60 absences.)"; and
2-61 (2) contain the following information:
2-62 (A) the unit's adopted tax rate for the
2-63 preceding year and the proposed tax rate, expressed as an amount
2-64 per $100;
2-65 (B) the difference, expressed as an amount per
2-66 $100 and as a percent increase or decrease, as applicable, in the
2-67 proposed tax rate compared to the adopted tax rate for the
2-68 preceding year;
2-69 (C) the average appraised value of a residence
3-1 homestead in the taxing unit in the preceding year and in the
3-2 current year; the unit's homestead exemption, other than an
3-3 exemption available only to disabled persons or persons 65 years of
3-4 age or older, applicable to that appraised value in each of those
3-5 years; and the average taxable value of a residence homestead in
3-6 the unit in each of those years, disregarding any homestead
3-7 exemption available only to disabled persons or persons 65 years of
3-8 age or older;
3-9 (D) the amount of tax that would have been
3-10 imposed by the unit in the preceding year on a residence homestead
3-11 appraised at the average appraised value of a residence homestead
3-12 in that year, disregarding any homestead exemption available only
3-13 to disabled persons or persons 65 years of age or older;
3-14 (E) the amount of tax that would be imposed by
3-15 the unit in the current year on a residence homestead appraised at
3-16 the average appraised value of a residence homestead in the current
3-17 year, disregarding any homestead exemption available only to
3-18 disabled persons or persons 65 years of age or older, if the
3-19 proposed tax rate is adopted; and
3-20 (F) the difference between the amounts of tax
3-21 calculated under Paragraphs (D) and (E), expressed in dollars and
3-22 cents and described as the annual increase or decrease, as
3-23 applicable, in the tax to be imposed by the unit on the average
3-24 residence homestead in the unit in the current year if the proposed
3-25 tax rate is adopted.
3-26 (d) At the public hearing the governing body shall announce
3-27 the date, time, and place of the meeting at which it will vote on
3-28 the proposed tax rate [to increase total tax revenues]. After the
3-29 hearing the governing body [it] shall give notice of the meeting at
3-30 which it will vote on the proposed tax rate [to increase total tax
3-31 revenues] and the notice shall be in the same form as prescribed by
3-32 Subsections (b) and (c), except that it must state the following:
3-33 "NOTICE OF VOTE ON TAX RATE
3-34 "The (name of the taxing unit) conducted a public hearing on
3-35 a proposal to increase the total tax revenues of the (name of the
3-36 taxing unit) from properties on the tax roll in the preceding year
3-37 by (percentage by which [taxes to be imposed under] proposed tax
3-38 rate exceeds lower of rollback tax rate or effective tax rate
3-39 calculated under this chapter [exceed last year's levy]) percent on
3-40 (date and time public hearing was conducted).
3-41 "The (governing body of the taxing unit) is scheduled to vote
3-42 on the tax rate that will result in that tax increase at a public
3-43 meeting to be held on (date and time) at (meeting place)."
3-44 (e) The meeting to vote on the tax increase may not be
3-45 earlier than the third day or later than the 14th day after the
3-46 date of the public hearing. The meeting must be held inside the
3-47 boundaries of the taxing unit in a publicly owned building or, if a
3-48 suitable publicly owned building is not available, in a suitable
3-49 building to which the public normally has access. If the governing
3-50 body does not adopt a tax rate that exceeds the lower of the
3-51 rollback tax rate or 103 percent of the effective tax rate [would
3-52 impose an amount of taxes that exceeds last year's levy] by the
3-53 14th day, it must give a new notice under Subsection (d) before it
3-54 may adopt a rate that exceeds the lower of the rollback tax rate or
3-55 103 percent of the effective tax rate [would impose an amount of
3-56 taxes that exceeds last year's levy].
3-57 SECTION 4. Section 25.19(b), Tax Code, is amended to read as
3-58 follows:
3-59 (b) The chief appraiser shall separate real from personal
3-60 property and include in the notice for each:
3-61 (1) a list of the taxing units in which the property
3-62 is taxable;
3-63 (2) the appraised value of the property in the
3-64 preceding year;
3-65 (3) the taxable value of the property in the preceding
3-66 year for each taxing unit taxing the property;
3-67 (4) the appraised value of the property for the
3-68 current year and the kind and amount of each partial exemption, if
3-69 any, approved for the current year;
4-1 (5) if the appraised value is greater than it was in
4-2 the preceding year:
4-3 (A) the effective tax rate that would be
4-4 announced pursuant to Chapter 26 if the total values being
4-5 submitted to the appraisal review board were to be approved by the
4-6 board with an explanation that that rate would raise the same
4-7 amount of revenue from property taxed in the preceding year as the
4-8 unit raised for those purposes in the preceding year;
4-9 (B) the amount of tax that would be imposed on
4-10 the property on the basis of the rate described by Paragraph (A);
4-11 and
4-12 (C) a statement that the governing body of the
4-13 unit may not adopt a rate that will increase tax revenues for
4-14 operating purposes from properties taxed in [above tax revenues
4-15 for] the preceding year without publishing notice in a newspaper
4-16 that it is considering a tax increase and holding a hearing for
4-17 taxpayers to discuss the tax increase;
4-18 (6) in italic typeface, the following statement: "The
4-19 Texas Legislature does not set the amount of your local taxes.
4-20 Your property tax burden is decided by your locally elected
4-21 officials, and all inquiries concerning your taxes should be
4-22 directed to those officials";
4-23 (7) a detailed explanation of the time and procedure
4-24 for protesting the value;
4-25 (8) the date and place the appraisal review board will
4-26 begin hearing protests; and
4-27 (9) a brief explanation that:
4-28 (A) the governing body of each taxing unit
4-29 decides whether or not taxes on the property will increase and the
4-30 appraisal district only determines the value of the property; and
4-31 (B) a taxpayer who objects to increasing taxes
4-32 and government expenditures should complain to the governing bodies
4-33 of the taxing units and only complaints about value should be
4-34 presented to the appraisal office and the appraisal review board.
4-35 SECTION 5. Chapter 26, Tax Code, is amended by adding
4-36 Section 26.065 to read as follows:
4-37 Sec. 26.065. SUPPLEMENTAL NOTICE OF HEARING ON TAX RATE
4-38 INCREASE. (a) In addition to the notice required under Section
4-39 26.06, the governing body of a taxing unit required to hold a
4-40 public hearing by Section 26.05(d) shall give notice of the hearing
4-41 in the manner provided by this section.
4-42 (b) If the taxing unit owns, operates, or controls an
4-43 Internet website, the unit shall post notice of the public hearing
4-44 on the website continuously for at least seven days immediately
4-45 before the public hearing on the proposed tax rate increase and at
4-46 least seven days immediately before the date of the vote proposing
4-47 the increase in the tax rate.
4-48 (c) If the taxing unit has free access to a television
4-49 channel, the taxing unit shall request that the station carry a
4-50 60-second notice of the public hearing at least five times a day
4-51 between the hours of 7 a.m. and 9 p.m. for at least seven days
4-52 immediately before the public hearing on the proposed tax rate
4-53 increase and at least seven days immediately before the date of the
4-54 vote proposing the increase in the tax rate.
4-55 (d) The notice of the public hearing required by Subsection
4-56 (b) must contain a statement that is substantially the same as the
4-57 statement required by Section 26.06(b)(1) and must contain
4-58 information that is substantially the same as the information
4-59 required by Section 26.06(b)(2).
4-60 (e) This section does not apply to a taxing unit if the
4-61 taxing unit:
4-62 (1) is unable to comply with the requirements of this
4-63 section because of the failure of an electronic or mechanical
4-64 device, including a computer or server; or
4-65 (2) is unable to comply with the requirements of this
4-66 section due to other circumstances beyond its control.
4-67 (f) A person who owns taxable property is not entitled to an
4-68 injunction restraining the collection of taxes by a taxing unit in
4-69 which the property is taxable if the taxing unit has, in good
5-1 faith, attempted to comply with the requirements of this section.
5-2 SECTION 6. (a) This Act takes effect January 1, 2000,
5-3 except as provided by Subsection (b) of this section.
5-4 (b) Section 26.065, Tax Code, as added by this Act, takes
5-5 effect January 1, 2001.
5-6 (c) The change in law made by this Act applies only to an ad
5-7 valorem tax rate adopted on or after the effective date applicable
5-8 to that provision of law.
5-9 SECTION 7. The importance of this legislation and the
5-10 crowded condition of the calendars in both houses create an
5-11 emergency and an imperative public necessity that the
5-12 constitutional rule requiring bills to be read on three several
5-13 days in each house be suspended, and this rule is hereby suspended.
5-14 * * * * *