By Smith H.B. No. 3147
76R4397 GJH-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 provide notice of and hold a public
1-4 hearing on the proposal.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 26.05(d), Tax Code, is amended to read as
1-7 follows:
1-8 (d) The governing body may not adopt a tax rate that [if
1-9 applied to the total taxable value would impose an amount of taxes
1-10 that] exceeds the unit's tax rate for the preceding tax year [last
1-11 year's levy] until it has held a public hearing on the proposed tax
1-12 rate and has otherwise complied with Sections [Section] 26.06 and
1-13 26.065.
1-14 SECTION 2. The heading to Section 26.06, Tax Code, is
1-15 amended to read as follows:
1-16 Sec. 26.06. NOTICE, HEARING, AND VOTE ON TAX RATE INCREASE
1-17 SECTION 3. Sections 26.06(a), (b), (d), and (e), Tax Code,
1-18 are amended to read as follows:
1-19 (a) A public hearing required by Section 26.05 [of this
1-20 code] may not be held before the seventh day after the date the
1-21 notice of the public hearing on the proposed tax rate increase is
1-22 given. The hearing must be on a weekday that is not a public
1-23 holiday. The hearing must be held inside the boundaries of the
1-24 taxing unit in a publicly owned building or, if a suitable publicly
2-1 owned building is not available, in a suitable building to which
2-2 the public normally has access. At the hearing, the governing body
2-3 must afford adequate opportunity for proponents and opponents of
2-4 the tax rate increase to present their views.
2-5 (b) The notice of a public hearing may not be smaller than
2-6 one-quarter page of a standard-size or a tabloid-size newspaper,
2-7 and the headline on the notice must be in 18-point or larger type.
2-8 The notice must:
2-9 (1) contain a statement in the following form:
2-10 "NOTICE OF PUBLIC HEARING ON TAX RATE INCREASE
2-11 "The (name of the taxing unit) will hold a public hearing on
2-12 a proposal to increase the tax rate [total tax revenues from
2-13 properties on the tax roll] by (percentage by which [taxes to be
2-14 imposed under] proposed tax rate exceeds the tax rate of the (name
2-15 of the taxing unit) for the preceding tax year [exceed last year's
2-16 levy]) percent. Your individual taxes may increase or decrease,
2-17 depending on the change in the taxable value of your property in
2-18 relation to the change in taxable value of all other property and
2-19 the tax rate that is adopted.
2-20 "The public hearing will be held on (date and time) at
2-21 (meeting place).
2-22 "(Names of all members of the governing body, showing how
2-23 each voted on the proposal to consider the increase in the tax rate
2-24 [total tax revenues] or, if one or more were absent, indicating the
2-25 absences.)"; and
2-26 (2) contain the following information:
2-27 (A) the unit's [adopted] tax rate for the
3-1 preceding year and the proposed tax rate, expressed as an amount
3-2 per $100;
3-3 (B) the difference, expressed as an amount per
3-4 $100 and as a percent increase or decrease, as applicable, in the
3-5 proposed tax rate compared to the [adopted] tax rate for the
3-6 preceding year;
3-7 (C) the average appraised value of a residence
3-8 homestead in the taxing unit in the preceding year and in the
3-9 current year; the unit's homestead exemption, other than an
3-10 exemption available only to disabled persons or persons 65 years of
3-11 age or older, applicable to that appraised value in each of those
3-12 years; and the average taxable value of a residence homestead in
3-13 the unit in each of those years, disregarding any homestead
3-14 exemption available only to disabled persons or persons 65 years of
3-15 age or older;
3-16 (D) the amount of tax that would have been
3-17 imposed by the unit in the preceding year on a residence homestead
3-18 appraised at the average appraised value of a residence homestead
3-19 in that year, disregarding any homestead exemption available only
3-20 to disabled persons or persons 65 years of age or older;
3-21 (E) the amount of tax that would be imposed by
3-22 the unit in the current year on a residence homestead appraised at
3-23 the average appraised value of a residence homestead in the current
3-24 year, disregarding any homestead exemption available only to
3-25 disabled persons or persons 65 years of age or older, if the
3-26 proposed tax rate is adopted; and
3-27 (F) the difference between the amounts of tax
4-1 calculated under Paragraphs (D) and (E), expressed in dollars and
4-2 cents and described as the annual increase or decrease, as
4-3 applicable, in the tax to be imposed by the unit on the average
4-4 residence homestead in the unit in the current year if the proposed
4-5 tax rate is adopted.
4-6 (d) At the public hearing the governing body shall announce
4-7 the date, time, and place of the meeting at which it will vote on
4-8 the proposed tax rate [to increase total tax revenues]. After the
4-9 hearing it shall give notice of the meeting at which it will vote
4-10 on the proposed tax rate [to increase total tax revenues and the
4-11 notice shall be] in the same form as prescribed by Subsections (b)
4-12 and (c), except that the notice [it] must state the following:
4-13 "NOTICE OF VOTE ON TAX RATE
4-14 "The (name of the taxing unit) conducted a public hearing on
4-15 a proposal to increase the tax rate [total tax revenues] of the
4-16 (name of the taxing unit) by (percentage by which [taxes to be
4-17 imposed under] proposed tax rate exceeds the tax rate of the (name
4-18 of the taxing unit) for the preceding tax year [exceed last year's
4-19 levy]) percent on (date and time public hearing was conducted).
4-20 "The (governing body of the taxing unit) is scheduled to vote
4-21 on the tax rate [that will result in that tax increase] at a public
4-22 meeting to be held on (date and time) at (meeting place)."
4-23 (e) The meeting to vote on the tax rate increase may not be
4-24 earlier than the third day or later than the 14th day after the
4-25 date of the public hearing. The meeting must be held inside the
4-26 boundaries of the taxing unit in a publicly owned building or, if a
4-27 suitable publicly owned building is not available, in a suitable
5-1 building to which the public normally has access. If the governing
5-2 body does not adopt a tax rate that exceeds the tax rate of the
5-3 taxing unit for the preceding tax year [would impose an amount of
5-4 taxes that exceeds last year's levy] by the 14th day, it must give
5-5 a new notice under Subsection (d) before it may adopt a rate that
5-6 exceeds the tax rate of the taxing unit for the preceding tax year
5-7 [would impose an amount of taxes that exceeds last year's levy].
5-8 SECTION 4. Chapter 26, Tax Code, is amended by adding
5-9 Section 26.065 to read as follows:
5-10 Sec. 26.065. SUPPLEMENTAL NOTICE OF HEARING ON TAX RATE
5-11 INCREASE. (a) In addition to the notice required under Section
5-12 26.06, the governing body of a taxing unit required to hold a
5-13 public hearing by Section 26.05(d) shall give notice of the hearing
5-14 in the manner provided by this section.
5-15 (b) If the taxing unit has an Internet website, the unit
5-16 shall post notice of the public hearing on the website for at least
5-17 the first seven days after the date of the vote proposing the
5-18 increase in the tax rate.
5-19 (c) If the taxing unit has free access to a television
5-20 channel, the taxing unit shall request that the station carry a
5-21 60-second notice of the public hearing at least five times a day
5-22 for at least the first seven days after the date of the vote
5-23 proposing the increase in the tax rate.
5-24 (d) If the taxing unit does not have an Internet website or
5-25 free access to a television channel, the taxing unit, not later
5-26 than the seventh day before the date of the public hearing, shall:
5-27 (1) include a notice of the public hearing in a
6-1 governmental mailer that is sent to a significant percentage of the
6-2 people residing in the taxing unit before the public hearing; or
6-3 (2) electronically mail a copy of the notice to each
6-4 person who has requested that the person be notified of a public
6-5 hearing and has supplied the taxing unit with the person's
6-6 electronic mail address.
6-7 (e) A printed notice required or provided under this section
6-8 must be in large type.
6-9 (f) The notice must contain a statement in the following
6-10 form:
6-11 "NOTICE OF PUBLIC HEARING ON TAX RATE INCREASE
6-12 "The governing body of (name of the taxing unit) will hold a
6-13 public hearing on a proposal to increase the tax rate by
6-14 (percentage by which proposed tax rate exceeds the tax rate of the
6-15 taxing unit for the preceding tax year) percent. Your individual
6-16 taxes may increase or decrease, depending on the change in the
6-17 taxable value of your property in relation to the change in taxable
6-18 value of all other property subject to taxation by (name of the
6-19 taxing unit) and the tax rate adopted.
6-20 "The governing body of (name of taxing unit) will hold the
6-21 public hearing on (date and time) at (meeting place)."
6-22 (g) A taxing unit may provide notice under Subsection (d)(2)
6-23 only if in a previous tax year the taxing unit provided with each
6-24 tax bill mailed a form by which a person may furnish the person's
6-25 electronic mail address to the taxing unit for purposes of
6-26 Subsection (d)(2).
6-27 SECTION 5. (a) This Act takes effect January 1, 2000.
7-1 (b) The change in law made by this Act applies only to an ad
7-2 valorem tax rate adopted on or after the effective date of this
7-3 Act.
7-4 SECTION 6. The importance of this legislation and the
7-5 crowded condition of the calendars in both houses create an
7-6 emergency and an imperative public necessity that the
7-7 constitutional rule requiring bills to be read on three several
7-8 days in each house be suspended, and this rule is hereby suspended.