76R15795 SMH-F
By Cain S.B. No. 693
Substitute the following for S.B. No. 693:
By Oliveira C.S.S.B. No. 693
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to public notice of ad valorem tax information and to
1-3 public hearings on proposed ad valorem tax rates.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 26.04, Tax Code, is amended by amending
1-6 Subsection (e) and adding Subsection (e-1) to read as 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
2-1 will be paid to service the unit's debts in the next year from
2-2 property tax revenue, including payments of lawfully incurred
2-3 contractual obligations providing security for the payment of the
2-4 principal of and interest on bonds and other evidences of
2-5 indebtedness issued on behalf of the unit by another political
2-6 subdivision and, if the unit is created under Section 52, Article
2-7 III, or Section 59, Article XVI, Texas Constitution, payments on
2-8 debts that the unit anticipates to incur in the next calendar year;
2-9 (B) the amount by which taxes imposed for debt
2-10 are to be increased because of the unit's anticipated collection
2-11 rate; and
2-12 (C) the total of the amounts listed in
2-13 Paragraphs (A)-(B), less any amount collected in excess of the
2-14 previous year's anticipated collections certified as provided in
2-15 Subsection (b);
2-16 (4) the amount of additional sales and use tax revenue
2-17 anticipated in calculations under Section 26.041;
2-18 (5) a statement that the adoption of a tax rate equal
2-19 to the effective tax rate would result in an increase or decrease,
2-20 as applicable, in the amount of taxes imposed by the unit as
2-21 compared to last year's levy, and the amount of the increase or
2-22 decrease;
2-23 (6) in the year that a taxing unit calculates an
2-24 adjustment under Subsection (i) or (j), [the unit shall publish] a
2-25 schedule that includes the following elements:
2-26 (A) the name of the unit discontinuing the
2-27 department, function, or activity;
3-1 (B) the amount of property tax revenue spent by
3-2 the unit listed under Paragraph (A) to operate the discontinued
3-3 department, function, or activity in the 12 months preceding the
3-4 month in which the calculations required by this chapter are made;
3-5 and
3-6 (C) the name of the unit that operates a
3-7 distinct department, function, or activity in all or a majority of
3-8 the territory of a taxing unit that has discontinued operating the
3-9 distinct department, function, or activity; and
3-10 (7) [(6)] in the year following the year in which a
3-11 taxing unit raised its rollback rate as required by Subsection (j),
3-12 [the taxing unit shall publish] a schedule that includes the
3-13 following elements:
3-14 (A) the amount of property tax revenue spent by
3-15 the unit to operate the department, function, or activity for which
3-16 the taxing unit raised the rollback rate as required by Subsection
3-17 (j) for the 12 months preceding the month in which the calculations
3-18 required by this chapter are made; and
3-19 (B) the amount published by the unit in the
3-20 preceding tax year under Subdivision (6)(B) [(5)(B)].
3-21 (e-1) The notice requirements imposed by Subsections
3-22 (e)(1)-(7) do not apply to a school district.
3-23 SECTION 2. Subsection (d), Section 26.05, Tax Code, is
3-24 amended to read as follows:
3-25 (d) The governing body of a taxing unit other than a school
3-26 district may not adopt a tax rate that exceeds the lower of the
3-27 rollback tax rate or 103 percent of the effective tax rate
4-1 calculated as provided by this chapter [if applied to the total
4-2 taxable value would impose an amount of taxes that exceeds last
4-3 year's levy] until the governing body [it] has held a public
4-4 hearing on the proposed tax rate and has otherwise complied with
4-5 Section 26.06. The governing body of a taxing unit other than a
4-6 school district shall reduce a tax rate set by law or by vote of
4-7 the electorate to the lower of the rollback tax rate or 103 percent
4-8 of the effective tax rate and may not adopt a higher rate unless it
4-9 first complies with Section 26.06.
4-10 SECTION 3. Section 26.06, Tax Code, is amended by amending
4-11 Subsections (a), (b), (d), and (e) and adding Subsection (g) to
4-12 read as follows:
4-13 (a) A public hearing required by Section 26.05 [of this
4-14 code] may not be held before the seventh day after the date the
4-15 notice of the public hearing on the proposed tax increase is given.
4-16 The hearing must be on a weekday that is not a public holiday. The
4-17 hearing must be held inside the boundaries of the unit in a
4-18 publicly owned building or, if a suitable publicly owned building
4-19 is not available, in a suitable building to which the public
4-20 normally has access. At the hearing, the governing body must
4-21 afford adequate opportunity for proponents and opponents of the tax
4-22 increase to present their views.
4-23 (b) The notice of a public hearing may not be smaller than
4-24 one-quarter page of a standard-size or a tabloid-size newspaper,
4-25 and the headline on the notice must be in 18-point or larger type.
4-26 The notice must:
4-27 (1) contain a statement in the following form:
5-1 "NOTICE OF PUBLIC HEARING ON TAX INCREASE
5-2 "The (name of the taxing unit) will hold a public hearing on
5-3 a proposal to increase total tax revenues from properties on the
5-4 tax roll in the preceding year by (percentage by which [taxes to be
5-5 imposed under] proposed tax rate exceeds lower of rollback tax rate
5-6 or effective tax rate calculated under this chapter [exceed last
5-7 year's levy]) percent. Your individual taxes may increase at a
5-8 greater or lesser rate, or even decrease, depending on the change
5-9 in the taxable value of your property in relation to the change in
5-10 taxable value of all other property and the tax rate that is
5-11 adopted.
5-12 "The public hearing will be held on (date and time) at
5-13 (meeting place).
5-14 "(Names of all members of the governing body, showing how
5-15 each voted on the proposal to consider the tax increase [in total
5-16 tax revenues] or, if one or more were absent, indicating the
5-17 absences.)"; and
5-18 (2) contain the following information:
5-19 (A) the unit's adopted tax rate for the
5-20 preceding year and the proposed tax rate, expressed as an amount
5-21 per $100;
5-22 (B) the difference, expressed as an amount per
5-23 $100 and as a percent increase or decrease, as applicable, in the
5-24 proposed tax rate compared to the adopted tax rate for the
5-25 preceding year;
5-26 (C) the average appraised value of a residence
5-27 homestead in the taxing unit in the preceding year and in the
6-1 current year; the unit's homestead exemption, other than an
6-2 exemption available only to disabled persons or persons 65 years of
6-3 age or older, applicable to that appraised value in each of those
6-4 years; and the average taxable value of a residence homestead in
6-5 the unit in each of those years, disregarding any homestead
6-6 exemption available only to disabled persons or persons 65 years of
6-7 age or older;
6-8 (D) the amount of tax that would have been
6-9 imposed by the unit in the preceding year on a residence homestead
6-10 appraised at the average appraised value of a residence homestead
6-11 in that year, disregarding any homestead exemption available only
6-12 to disabled persons or persons 65 years of age or older;
6-13 (E) the amount of tax that would be imposed by
6-14 the unit in the current year on a residence homestead appraised at
6-15 the average appraised value of a residence homestead in the current
6-16 year, disregarding any homestead exemption available only to
6-17 disabled persons or persons 65 years of age or older, if the
6-18 proposed tax rate is adopted; and
6-19 (F) the difference between the amounts of tax
6-20 calculated under Paragraphs (D) and (E), expressed in dollars and
6-21 cents and described as the annual increase or decrease, as
6-22 applicable, in the tax to be imposed by the unit on the average
6-23 residence homestead in the unit in the current year if the proposed
6-24 tax rate is adopted.
6-25 (d) At the public hearing the governing body shall announce
6-26 the date, time, and place of the meeting at which it will vote on
6-27 the proposed tax rate [to increase total tax revenues]. After the
7-1 hearing the governing body [it] shall give notice of the meeting at
7-2 which it will vote on the proposed tax rate [to increase total tax
7-3 revenues] and the notice shall be in the same form as prescribed by
7-4 Subsections (b) and (c), except that it must state the following:
7-5 "NOTICE OF VOTE ON TAX RATE
7-6 "The (name of the taxing unit) conducted a public hearing on
7-7 a proposal to increase the total tax revenues of the (name of the
7-8 taxing unit) from properties on the tax roll in the preceding year
7-9 by (percentage by which [taxes to be imposed under] proposed tax
7-10 rate exceeds lower of rollback tax rate or effective tax rate
7-11 calculated under this chapter [exceed last year's levy]) percent on
7-12 (date and time public hearing was conducted).
7-13 "The (governing body of the taxing unit) is scheduled to vote
7-14 on the tax rate that will result in that tax increase at a public
7-15 meeting to be held on (date and time) at (meeting place)."
7-16 (e) The meeting to vote on the tax increase may not be
7-17 earlier than the third day or later than the 14th day after the
7-18 date of the public hearing. The meeting must be held inside the
7-19 boundaries of the taxing unit in a publicly owned building or, if a
7-20 suitable publicly owned building is not available, in a suitable
7-21 building to which the public normally has access. If the governing
7-22 body does not adopt a tax rate that exceeds the lower of the
7-23 rollback tax rate or 103 percent of the effective tax rate [would
7-24 impose an amount of taxes that exceeds last year's levy] by the
7-25 14th day, it must give a new notice under Subsection (d) before it
7-26 may adopt a rate that exceeds the lower of the rollback tax rate or
7-27 103 percent of the effective tax rate [would impose an amount of
8-1 taxes that exceeds last year's levy].
8-2 (g) This section does not apply to a school district. A
8-3 school district shall provide notice of a public hearing on a tax
8-4 increase as required by Section 44.004, Education Code.
8-5 SECTION 4. Subsection (b), Section 25.19, Tax Code, is
8-6 amended to read as follows:
8-7 (b) The chief appraiser shall separate real from personal
8-8 property and include in the notice for each:
8-9 (1) a list of the taxing units in which the property
8-10 is taxable;
8-11 (2) the appraised value of the property in the
8-12 preceding year;
8-13 (3) the taxable value of the property in the preceding
8-14 year for each taxing unit taxing the property;
8-15 (4) the appraised value of the property for the
8-16 current year and the kind and amount of each partial exemption, if
8-17 any, approved for the current year;
8-18 (5) if the appraised value is greater than it was in
8-19 the preceding year:
8-20 (A) the effective tax rate that would be
8-21 announced pursuant to Chapter 26 if the total values being
8-22 submitted to the appraisal review board were to be approved by the
8-23 board with an explanation that that rate would raise the same
8-24 amount of revenue from property taxed in the preceding year as the
8-25 unit raised for those purposes in the preceding year;
8-26 (B) the amount of tax that would be imposed on
8-27 the property on the basis of the rate described by Paragraph (A);
9-1 and
9-2 (C) a statement that the governing body of the
9-3 unit may not adopt a rate that will increase tax revenues for
9-4 operating purposes from properties taxed in [above tax revenues
9-5 for] the preceding year without publishing notice in a newspaper
9-6 that it is considering a tax increase and holding a hearing for
9-7 taxpayers to discuss the tax increase;
9-8 (6) in italic typeface, the following statement: "The
9-9 Texas Legislature does not set the amount of your local taxes.
9-10 Your property tax burden is decided by your locally elected
9-11 officials, and all inquiries concerning your taxes should be
9-12 directed to those officials";
9-13 (7) a detailed explanation of the time and procedure
9-14 for protesting the value;
9-15 (8) the date and place the appraisal review board will
9-16 begin hearing protests; and
9-17 (9) a brief explanation that:
9-18 (A) the governing body of each taxing unit
9-19 decides whether or not taxes on the property will increase and the
9-20 appraisal district only determines the value of the property; and
9-21 (B) a taxpayer who objects to increasing taxes
9-22 and government expenditures should complain to the governing bodies
9-23 of the taxing units and only complaints about value should be
9-24 presented to the appraisal office and the appraisal review board.
9-25 SECTION 5. Section 44.004, Education Code, is amended to
9-26 read as follows:
9-27 Sec. 44.004. NOTICE OF BUDGET AND TAX RATE MEETING; BUDGET
10-1 ADOPTION. (a) When the budget has been prepared under Section
10-2 44.002, the president shall call a meeting of the board of trustees
10-3 for[, stating that] the purpose of adopting [the meeting is the
10-4 adoption of] a budget for the succeeding fiscal year.
10-5 (b) The president shall provide for the publication of
10-6 notice of the budget and proposed tax rate meeting in a daily,
10-7 weekly, or biweekly newspaper published in the district. If no
10-8 daily, weekly, or biweekly newspaper is published in the district,
10-9 the president shall provide for the publication of notice in at
10-10 least one newspaper of general circulation in the county in which
10-11 the district's central administrative office is located. [Notice
10-12 published under this subsection is in addition to notice required
10-13 by other law.] Notice under this subsection shall be published not
10-14 earlier than the 30th day or later than the 10th day before the
10-15 date of the hearing. [A district may include the notice required
10-16 under this subsection in a notice required under Section 26.06, Tax
10-17 Code.]
10-18 (c) The notice of public meeting to discuss and adopt the
10-19 budget and the proposed tax rate may not be smaller than
10-20 one-quarter page of a standard-size or a tabloid-size newspaper,
10-21 and the headline on the notice must be in 18-point or larger type.
10-22 Subject to Subsection (d), the notice must:
10-23 (1) contain a statement in the following form:
10-24 "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET
10-25 AND PROPOSED TAX RATE
10-26 "The (name of school district) will hold a public meeting at
10-27 (time, date, year) in (name of room, building, physical location,
11-1 city, state). The purpose of this meeting is to discuss the school
11-2 district's budget that will determine the tax rate that will be
11-3 adopted. Public participation in the discussion is invited." The
11-4 statement of the purpose of the meeting must be in bold type. In
11-5 reduced type, the notice must state: "The tax rate that is
11-6 ultimately adopted at this meeting or at a separate meeting at a
11-7 later date may not exceed the proposed rate shown below unless the
11-8 district publishes a revised notice containing the same information
11-9 and comparisons set out below and holds another public meeting to
11-10 discuss the revised notice.";
11-11 (2) contain a section entitled "Comparison of Proposed
11-12 Rates with Last Year's Rates," which must:
11-13 (A) show in rows the tax rates described by
11-14 Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
11-15 property, for columns entitled "Maintenance & Operations,"
11-16 "Interest & Sinking Fund," and "Total," which is the sum of
11-17 "Maintenance & Operations" and "Interest & Sinking Fund":
11-18 (i) the school district's "Last Year's
11-19 Rate";
11-20 (ii) the "Rate to Maintain Same Level of
11-21 Maintenance & Operations Revenue & Pay Debt Service," which:
11-22 (a) in the case of
11-23 "Maintenance & Operations," is the tax rate that, when applied to
11-24 the current taxable value for the district, as certified by the
11-25 chief appraiser under Section 26.01, Tax Code, and as adjusted to
11-26 reflect changes made by the chief appraiser as of the time the
11-27 notice is prepared, would impose taxes in an amount that, when
12-1 added to state funds to be distributed to the district under
12-2 Chapter 42, would provide the same amount of maintenance and
12-3 operations taxes and state funds distributed under Chapter 42 per
12-4 student in average daily attendance for the applicable school year
12-5 that was available to the district in the preceding school year;
12-6 and
12-7 (b) in the case of
12-8 "Interest & Sinking Fund," is the tax rate that, when applied to
12-9 the current taxable value for the district, as certified by the
12-10 chief appraiser under Section 26.01, Tax Code, and as adjusted to
12-11 reflect changes made by the chief appraiser as of the time the
12-12 notice is prepared, and when multiplied by the district's
12-13 anticipated collection rate, would impose taxes in an amount that,
12-14 when added to state funds to be distributed to the district under
12-15 Chapter 46 and any excess taxes collected to service the district's
12-16 debt during the preceding year but not used for that purpose during
12-17 that year, would provide the amount required to service the
12-18 district's debt; and
12-19 (iii) the "Proposed Rate";
12-20 (B) contain fourth and fifth columns aligned
12-21 with the columns required by Paragraph (A) that show, for each row
12-22 required by Paragraph (A):
12-23 (i) the "Local Revenue per Student," which
12-24 is computed by multiplying the district's total taxable value of
12-25 property, as certified by the chief appraiser for the applicable
12-26 school year under Section 26.01, Tax Code, and as adjusted to
12-27 reflect changes made by the chief appraiser as of the time the
13-1 notice is prepared, by the total tax rate, and dividing the product
13-2 by the number of students in average daily attendance in the
13-3 district for the applicable school year; and
13-4 (ii) the "State Revenue per Student,"
13-5 which is computed by determining the amount of state aid received
13-6 or to be received by the district under Chapters 42, 43, and 46 and
13-7 dividing that amount by the number of students in average daily
13-8 attendance in the district for the applicable school year; and
13-9 (C) contain an asterisk after each calculation
13-10 for "Interest & Sinking Fund" and a footnote to the section that,
13-11 in reduced type, states "The Interest & Sinking Fund tax revenue is
13-12 used to pay for bonded indebtedness on construction, equipment, or
13-13 both. The bonds, and the tax rate necessary to pay those bonds,
13-14 were approved by the voters of this district.";
13-15 (3) contain a section entitled "Comparison of
13-16 Proposed Levy with Last Year's Levy on Average Residence," which
13-17 must:
13-18 (A) show in rows the information described by
13-19 Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
13-20 entitled "Last Year" and "This Year":
13-21 (i) "Average Market Value of Residences,"
13-22 determined using the same group of residences for each year;
13-23 (ii) "Average Taxable Value of
13-24 Residences," determined after taking into account the limitation on
13-25 the appraised value of residences under Section 23.23, Tax Code,
13-26 and after subtracting all homestead exemptions applicable in each
13-27 year, other than exemptions available only to disabled persons or
14-1 persons 65 years of age or older or their surviving spouses, and
14-2 using the same group of residences for each year;
14-3 (iii) "Last Year's Rate Versus Proposed
14-4 Rate per $100 Value"; and
14-5 (iv) "Taxes Due on Average Residence,"
14-6 determined using the same group of residences for each year; and
14-7 (B) contain the following information:
14-8 "Increase (Decrease) in Taxes" expressed in dollars and cents,
14-9 which is computed by subtracting the "Taxes Due on Average
14-10 Residence" for the preceding tax year from the "Taxes Due on
14-11 Average Residence" for the current tax year;
14-12 (4) contain the following statement in bold print:
14-13 "Under state law, the dollar amount of school taxes imposed on the
14-14 residence of a person 65 years of age or older or of the surviving
14-15 spouse of such a person, if the surviving spouse was 55 years of
14-16 age or older when the person died, may not be increased above the
14-17 amount paid in the first year after the person turned 65,
14-18 regardless of changes in tax rate or property value.";
14-19 (5) contain the following statement in bold print:
14-20 "Notice of Rollback Rate: The highest tax rate the district can
14-21 adopt before requiring voter approval at an election is (the school
14-22 district rollback rate determined under Section 26.08, Tax Code).
14-23 This election will be automatically held if the district adopts a
14-24 rate in excess of the rollback rate of (the school district
14-25 rollback rate)."; and
14-26 (6) contain a section entitled "Fund Balances," which
14-27 must include the estimated amount of interest and sinking fund
15-1 balances and the estimated amount of maintenance and operation or
15-2 general fund balances remaining at the end of the current fiscal
15-3 year that are not encumbered with or by corresponding debt
15-4 obligation, less estimated funds necessary for the operation of the
15-5 district before the receipt of the first payment under Chapter 42
15-6 in the succeeding school year.
15-7 (d) The comptroller shall prescribe the language and format
15-8 to be used in the part of the notice required by Subsection (c). A
15-9 notice under Subsection (c) is not valid if it does not
15-10 substantially conform to the language and format prescribed by the
15-11 comptroller under this subsection.
15-12 (e) A person who owns taxable property in a school district
15-13 is entitled to an injunction restraining the collection of taxes by
15-14 the district if the district has not complied with the requirements
15-15 of Subsections (b), (c), and (d), and the failure to comply was not
15-16 in good faith. An action to enjoin the collection of taxes must be
15-17 filed before the date the school district delivers substantially
15-18 all of its tax bills.
15-19 (f) The board of trustees, at the meeting called for that
15-20 purpose, shall adopt a budget to cover all expenditures for the
15-21 school district for the next succeeding fiscal year. Any taxpayer
15-22 of the district may be present and participate in the meeting
15-23 [hearing].
15-24 (g) [(d)] The budget must be adopted before the adoption of
15-25 the tax rate for the tax year in which the fiscal year covered by
15-26 the budget begins.
15-27 SECTION 6. (a) This Act takes effect September 1, 1999.
16-1 (b) Except as provided by Subsection (c) of this section,
16-2 this Act applies only to the adoption of an ad valorem tax rate for
16-3 a tax year that begins on or after January 1, 2000.
16-4 (c) This Act applies to the adoption of an ad valorem tax
16-5 rate by a taxing unit for the 1999 tax year unless before the
16-6 effective date of this Act the taxing unit:
16-7 (1) has given notice under Subsection (a), Section
16-8 26.06, Tax Code, as that subsection existed when the notice was
16-9 given, of the taxing unit's proposed tax rate as required by
16-10 Subsection (d), Section 26.05, Tax Code, as that subsection existed
16-11 when the notice was given; or
16-12 (2) has adopted its ad valorem tax rate for the 1999
16-13 tax year under Subsection (a), Section 26.05, Tax Code.
16-14 SECTION 7. The importance of this legislation and the
16-15 crowded condition of the calendars in both houses create an
16-16 emergency and an imperative public necessity that the
16-17 constitutional rule requiring bills to be read on three several
16-18 days in each house be suspended, and this rule is hereby suspended.