By: Cain S.B. No. 693
A BILL TO BE ENTITLED
AN ACT
1-1 relating to public notice of and public hearings on proposed ad
1-2 valorem tax rates.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (e), Section 26.04, Tax Code, is
1-5 amended to read as follows:
1-6 (e) By August 7 or as soon thereafter as practicable, the
1-7 designated officer or employee shall submit the rates to the
1-8 governing body. He shall deliver by mail to each property owner in
1-9 the unit or publish in a newspaper in the form prescribed by the
1-10 comptroller:
1-11 (1) the effective tax rate, the rollback tax rate, and
1-12 an explanation of how they were calculated;
1-13 (2) the estimated amount of interest and sinking fund
1-14 balances and the estimated amount of maintenance and operation or
1-15 general fund balances remaining at the end of the current fiscal
1-16 year that are not encumbered with or by corresponding existing debt
1-17 obligation, except that for a school district, estimated funds
1-18 necessary for the operation of the district prior to the receipt of
1-19 the first state education aid payment in the succeeding school year
1-20 shall be subtracted from the estimated fund balances;
1-21 (3) a schedule of the unit's debt obligations showing:
1-22 (A) the amount of principal and interest that
1-23 will be paid to service the unit's debts in the next year from
1-24 property tax revenue, including payments of lawfully incurred
2-1 contractual obligations providing security for the payment of the
2-2 principal of and interest on bonds and other evidences of
2-3 indebtedness issued on behalf of the unit by another political
2-4 subdivision and, if the unit is created under Section 52, Article
2-5 III, or Section 59, Article XVI, Texas Constitution, payments on
2-6 debts that the unit anticipates to incur in the next calendar year;
2-7 (B) the amount by which taxes imposed for debt
2-8 are to be increased because of the unit's anticipated collection
2-9 rate; and
2-10 (C) the total of the amounts listed in
2-11 Paragraphs (A)-(B), less any amount collected in excess of the
2-12 previous year's anticipated collections certified as provided in
2-13 Subsection (b);
2-14 (4) the amount of additional sales and use tax revenue
2-15 anticipated in calculations under Section 26.041;
2-16 (5) a statement that the adoption of the effective tax
2-17 rate would result in an increase or decrease, as applicable, of
2-18 total property taxes levied in the unit as compared to last year's
2-19 levy, and the amount of such increase or decrease;
2-20 (6) in the year that a taxing unit calculates an
2-21 adjustment under Subsection (i) or (j), the unit shall publish a
2-22 schedule that includes the following elements:
2-23 (A) the name of the unit discontinuing the
2-24 department, function, or activity;
2-25 (B) the amount of property tax revenue spent by
2-26 the unit listed under Paragraph (A) to operate the discontinued
3-1 department, function, or activity in the 12 months preceding the
3-2 month in which the calculations required by this chapter are made;
3-3 and
3-4 (C) the name of the unit that operates a
3-5 distinct department, function, or activity in all or a majority of
3-6 the territory of a taxing unit that has discontinued operating the
3-7 distinct department, function, or activity; and
3-8 (7) [(6)] in the year following the year in which a
3-9 taxing unit raised its rollback rate as required by Subsection (j),
3-10 the taxing unit shall publish a schedule that includes the
3-11 following elements:
3-12 (A) the amount of property tax revenue spent by
3-13 the unit to operate the department, function, or activity for which
3-14 the taxing unit raised the rollback rate as required by Subsection
3-15 (j) for the 12 months preceding the month in which the calculations
3-16 required by this chapter are made; and
3-17 (B) the amount published by the unit in the
3-18 preceding tax year under Subdivision (6)(B) [(5)(B)].
3-19 SECTION 2. Subsection (d), Section 26.05, Tax Code, is
3-20 amended to read as follows:
3-21 (d) The governing body may not adopt a tax rate that exceeds
3-22 the effective tax rate calculated as provided by Section 26.04 [if
3-23 applied to the total taxable value would impose an amount of taxes
3-24 that exceeds last year's levy] until the governing body [it] has
3-25 held a public hearing on the proposed tax rate and has otherwise
3-26 complied with Section 26.06.
4-1 SECTION 3. Subsections (a), (b), (d), and (e), Section
4-2 26.06, Tax Code, are amended to read as follows:
4-3 (a) A public hearing required by Section 26.05 [of this
4-4 code] may not be held before the seventh day after the date the
4-5 notice of the public hearing on the proposed tax increase is given.
4-6 The hearing must be on a weekday that is not a public holiday. The
4-7 hearing must be held inside the boundaries of the unit in a
4-8 publicly owned building or, if a suitable publicly owned building
4-9 is not available, in a suitable building to which the public
4-10 normally has access. At the hearing, the governing body must
4-11 afford adequate opportunity for proponents and opponents of the tax
4-12 increase to present their views.
4-13 (b) The notice of a public hearing may not be smaller than
4-14 one-quarter page of a standard-size or a tabloid-size newspaper,
4-15 and the headline on the notice must be in 18-point or larger type.
4-16 The notice must:
4-17 (1) contain a statement in the following form:
4-18 "NOTICE OF PUBLIC HEARING ON TAX INCREASE
4-19 "The (name of the taxing unit) will hold a public hearing on
4-20 a proposal to increase total tax revenues from properties on the
4-21 tax roll in the preceding year by (percentage by which [taxes to be
4-22 imposed under] proposed tax rate exceeds effective tax rate
4-23 calculated under Section 26.04 [exceed last year's levy]) percent.
4-24 Your individual taxes may increase at a greater or lesser rate, or
4-25 even decrease, depending on the change in the taxable value of your
4-26 property in relation to the change in taxable value of all other
5-1 property and the tax rate that is adopted.
5-2 "The public hearing will be held on (date and time) at
5-3 (meeting place).
5-4 "(Names of all members of the governing body, showing how
5-5 each voted on the proposal to consider the tax increase [in total
5-6 tax revenues] or, if one or more were absent, indicating the
5-7 absences.)"; and
5-8 (2) contain the following information:
5-9 (A) the unit's adopted tax rate for the
5-10 preceding year and the proposed tax rate, expressed as an amount
5-11 per $100;
5-12 (B) the difference, expressed as an amount per
5-13 $100 and as a percent increase or decrease, as applicable, in the
5-14 proposed tax rate compared to the adopted tax rate for the
5-15 preceding year;
5-16 (C) the average appraised value of a residence
5-17 homestead in the taxing unit in the preceding year and in the
5-18 current year; the unit's homestead exemption, other than an
5-19 exemption available only to disabled persons or persons 65 years of
5-20 age or older, applicable to that appraised value in each of those
5-21 years; and the average taxable value of a residence homestead in
5-22 the unit in each of those years, disregarding any homestead
5-23 exemption available only to disabled persons or persons 65 years of
5-24 age or older;
5-25 (D) the amount of tax that would have been
5-26 imposed by the unit in the preceding year on a residence homestead
6-1 appraised at the average appraised value of a residence homestead
6-2 in that year, disregarding any homestead exemption available only
6-3 to disabled persons or persons 65 years of age or older;
6-4 (E) the amount of tax that would be imposed by
6-5 the unit in the current year on a residence homestead appraised at
6-6 the average appraised value of a residence homestead in the current
6-7 year, disregarding any homestead exemption available only to
6-8 disabled persons or persons 65 years of age or older, if the
6-9 proposed tax rate is adopted; and
6-10 (F) the difference between the amounts of tax
6-11 calculated under Paragraphs (D) and (E), expressed in dollars and
6-12 cents and described as the annual increase or decrease, as
6-13 applicable, in the tax to be imposed by the unit on the average
6-14 residence homestead in the unit in the current year if the proposed
6-15 tax rate is adopted.
6-16 (d) At the public hearing the governing body shall announce
6-17 the date, time, and place of the meeting at which it will vote on
6-18 the proposed tax rate [to increase total tax revenues]. After the
6-19 hearing the governing body [it] shall give notice of the meeting at
6-20 which it will vote on the proposed tax rate [to increase total tax
6-21 revenues] and the notice shall be in the same form as prescribed by
6-22 Subsections (b) and (c), except that it must state the following:
6-23 "NOTICE OF VOTE ON TAX RATE
6-24 "The (name of the taxing unit) conducted a public hearing on
6-25 a proposal to increase the total tax revenues of the (name of the
6-26 taxing unit) from properties on the tax roll in the preceding year
7-1 by (percentage by which [taxes to be imposed under] proposed tax
7-2 rate exceeds effective tax rate calculated under Section 26.04
7-3 [exceed last year's levy]) percent on (date and time public hearing
7-4 was conducted).
7-5 "The (governing body of the taxing unit) is scheduled to vote
7-6 on the tax rate that will result in that tax increase at a public
7-7 meeting to be held on (date and time) at (meeting place)."
7-8 (e) The meeting to vote on the tax increase may not be
7-9 earlier than the third day or later than the 14th day after the
7-10 date of the public hearing. The meeting must be held inside the
7-11 boundaries of the unit in a publicly owned building or, if a
7-12 suitable publicly owned building is not available, in a suitable
7-13 building to which the public normally has access. If the governing
7-14 body does not adopt a tax rate that exceeds the effective tax rate
7-15 [would impose an amount of taxes that exceeds last year's levy] by
7-16 the 14th day, it must give a new notice under Subsection (d) before
7-17 it may adopt a rate that exceeds the effective tax rate [would
7-18 impose an amount of taxes that exceeds last year's levy].
7-19 SECTION 4. Subsection (b), Section 25.19, Tax Code, is
7-20 amended to read as follows:
7-21 (b) The chief appraiser shall separate real from personal
7-22 property and include in the notice for each:
7-23 (1) a list of the taxing units in which the property
7-24 is taxable;
7-25 (2) the appraised value of the property in the
7-26 preceding year;
8-1 (3) the taxable value of the property in the preceding
8-2 year for each taxing unit taxing the property;
8-3 (4) the appraised value of the property for the
8-4 current year and the kind and amount of each partial exemption, if
8-5 any, approved for the current year;
8-6 (5) if the appraised value is greater than it was in
8-7 the preceding year:
8-8 (A) the effective tax rate that would be
8-9 announced pursuant to Chapter 26 if the total values being
8-10 submitted to the appraisal review board were to be approved by the
8-11 board with an explanation that that rate would raise the same
8-12 amount of revenue from property taxed in the preceding year as the
8-13 unit raised for those purposes in the preceding year;
8-14 (B) the amount of tax that would be imposed on
8-15 the property on the basis of the rate described by Paragraph (A);
8-16 and
8-17 (C) a statement that the governing body of the
8-18 unit may not adopt a rate that will increase tax revenues for
8-19 operating purposes from properties taxed in [above tax revenues
8-20 for] the preceding year without publishing notice in a newspaper
8-21 that it is considering a tax increase and holding a hearing for
8-22 taxpayers to discuss the tax increase;
8-23 (6) in italic typeface, the following statement: "The
8-24 Texas Legislature does not set the amount of your local taxes.
8-25 Your property tax burden is decided by your locally elected
8-26 officials, and all inquiries concerning your taxes should be
9-1 directed to those officials";
9-2 (7) a detailed explanation of the time and procedure
9-3 for protesting the value;
9-4 (8) the date and place the appraisal review board will
9-5 begin hearing protests; and
9-6 (9) a brief explanation that:
9-7 (A) the governing body of each taxing unit
9-8 decides whether or not taxes on the property will increase and the
9-9 appraisal district only determines the value of the property; and
9-10 (B) a taxpayer who objects to increasing taxes
9-11 and government expenditures should complain to the governing bodies
9-12 of the taxing units and only complaints about value should be
9-13 presented to the appraisal office and the appraisal review board.
9-14 SECTION 5. (a) This Act takes effect September 1, 1999.
9-15 (b) Except as provided by Subsection (c) of this section,
9-16 this Act applies only to the adoption of an ad valorem tax rate for
9-17 a tax year that begins on or after January 1, 2000.
9-18 (c) This Act applies to the adoption of an ad valorem tax
9-19 rate by a taxing unit for the 1999 tax year unless before the
9-20 effective date of this Act the taxing unit:
9-21 (1) has given notice under Subsection (a), Section
9-22 26.06, Tax Code, as that subsection existed when the notice was
9-23 given, of the taxing unit's proposed tax rate as required by
9-24 Subsection (d), Section 26.05, Tax Code, as that subsection existed
9-25 when the notice was given; or
9-26 (2) has adopted its ad valorem tax rate for the 1999
10-1 tax year under Subsection (a), Section 26.05, Tax Code.
10-2 SECTION 6. The importance of this legislation and the
10-3 crowded condition of the calendars in both houses create an
10-4 emergency and an imperative public necessity that the
10-5 constitutional rule requiring bills to be read on three several
10-6 days in each house be suspended, and this rule is hereby suspended.