By Cain                                                S.B. No. 693
         76R2597 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to public notice of and public hearings on proposed ad
 1-3     valorem tax rates.
 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 exceeds
 1-8     the effective tax rate calculated as provided by Section 26.04 [if
 1-9     applied to the total taxable value would impose an amount of taxes
1-10     that exceeds last year's levy] until the governing body [it] has
1-11     held a public hearing on the proposed tax rate and has otherwise
1-12     complied with Section 26.06.
1-13           SECTION 2.  Sections 26.06(a), (b), (d), and (e), Tax Code,
1-14     are amended to read as follows:
1-15           (a)  A public hearing required by Section 26.05 [of this
1-16     code] may not be held before the seventh day after the date the
1-17     notice of the public hearing on the proposed tax increase is given.
1-18     The hearing must be on a weekday that is not a public holiday.  The
1-19     hearing must be held inside the boundaries of the unit in a
1-20     publicly owned building or, if a suitable publicly owned building
1-21     is not available, in a suitable building to which the public
1-22     normally has access.  At the hearing, the governing body must
1-23     afford adequate opportunity for proponents and opponents of the
1-24     tax increase to present their views.
 2-1           (b)  The notice of a public hearing may not be smaller than
 2-2     one-quarter page of a standard-size or a tabloid-size newspaper,
 2-3     and the headline on the notice must be in 18-point or larger type.
 2-4     The notice must:
 2-5                 (1)  contain a statement in the following form:
 2-6                  "NOTICE OF PUBLIC HEARING ON TAX INCREASE
 2-7                 "The (name of the taxing unit) will hold a public
 2-8           hearing on a proposal to increase total tax revenues
 2-9           from properties on the tax roll in the preceding year
2-10           by (percentage by which [taxes to be imposed under]
2-11           proposed tax rate exceeds effective tax rate calculated
2-12           under Section 26.04 [exceed last year's levy]) percent.
2-13           Your individual taxes may increase at a greater or
2-14           lesser rate, or even decrease, depending on the change
2-15           in the taxable value of your property in relation to
2-16           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
2-19           time) at (meeting place).
2-20                 "(Names of all members of the governing body,
2-21           showing how each voted on the proposal to consider the
2-22           tax increase [in total tax revenues] or, if one or more
2-23           were absent, indicating the 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 the governing body [it] shall give notice of the meeting at
 4-8     which it will vote on the proposed tax rate [to increase total tax
 4-9     revenues] and the notice shall be in the same form as prescribed by
4-10     Subsections (b) and (c), except that it must state the following:
4-11                         "NOTICE OF VOTE ON TAX RATE
4-12                 "The (name of the taxing unit) conducted a public
4-13           hearing on a proposal to increase the total tax
4-14           revenues of the (name of the taxing unit) from
4-15           properties on the tax roll in the preceding year by
4-16           (percentage by which [taxes to be imposed under]
4-17           proposed tax rate exceeds effective tax rate calculated
4-18           under Section 26.04 [exceed last year's levy]) percent
4-19           on (date and time public hearing was conducted).
4-20                 "The (governing body of the taxing unit) is
4-21           scheduled to vote on the tax rate that will result in
4-22           that tax increase at a public meeting to be held on
4-23           (date and time) at (meeting place)."
4-24           (e)  The meeting to vote on the tax increase may not be
4-25     earlier than the third day or later than the 14th day after the
4-26     date of the public hearing.  The meeting must be held inside the
4-27     boundaries of the unit in a publicly owned building or, if a
 5-1     suitable publicly owned building is not available, in a suitable
 5-2     building to which the public normally has access.  If the governing
 5-3     body does not adopt a tax rate that exceeds the effective tax rate
 5-4     [would impose an amount of taxes that exceeds last year's levy] by
 5-5     the 14th day, it must give a new notice under Subsection (d) before
 5-6     it may adopt a rate that exceeds the effective tax rate [would
 5-7     impose an amount of taxes that exceeds last year's levy].
 5-8           SECTION 3.  Section 25.19(b), Tax Code, is amended to read as
 5-9     follows:
5-10           (b)  The chief appraiser shall separate real from personal
5-11     property and include in the notice for each:
5-12                 (1)  a list of the taxing units in which the property
5-13     is taxable;
5-14                 (2)  the appraised value of the property in the
5-15     preceding year;
5-16                 (3)  the taxable value of the property in the preceding
5-17     year for each taxing unit taxing the property;
5-18                 (4)  the appraised value of the property for the
5-19     current year and the kind and amount of each partial exemption, if
5-20     any, approved for the current year;
5-21                 (5)  if the appraised value is greater than it was in
5-22     the preceding year:
5-23                       (A)  the effective tax rate that would be
5-24     announced pursuant to Chapter 26 if the total values being
5-25     submitted to the appraisal review board were to be approved by the
5-26     board with an explanation that that rate would raise the same
5-27     amount of revenue from property taxed in the preceding year as the
 6-1     unit raised for those purposes in the preceding year;
 6-2                       (B)  the amount of tax that would be imposed on
 6-3     the property on the basis of the rate described by Paragraph (A);
 6-4     and
 6-5                       (C)  a statement that the governing body of the
 6-6     unit may not adopt a rate that will increase tax revenues for
 6-7     operating purposes from properties taxed in [above tax revenues
 6-8     for] the preceding year without publishing notice in a newspaper
 6-9     that it is considering a tax increase and holding a hearing for
6-10     taxpayers to discuss the tax increase;
6-11                 (6)  in italic typeface, the following statement:  "The
6-12     Texas Legislature does not set the amount of your local taxes.
6-13     Your property tax burden is decided by your locally elected
6-14     officials, and all inquiries concerning your taxes should be
6-15     directed to those officials";
6-16                 (7)  a detailed explanation of the time and procedure
6-17     for protesting the value;
6-18                 (8)  the date and place the appraisal review board will
6-19     begin hearing protests; and
6-20                 (9)  a brief explanation that:
6-21                       (A)  the governing body of each taxing unit
6-22     decides whether or not taxes on the property will increase and the
6-23     appraisal district only determines the value of the property; and
6-24                       (B)  a taxpayer who objects to increasing taxes
6-25     and government expenditures should complain to the governing bodies
6-26     of the taxing units and only complaints about value should be
6-27     presented to the appraisal office and the appraisal review board.
 7-1           SECTION 4.  (a)  This Act takes effect September 1, 1999.
 7-2           (b)  Except as provided by Subsection (c) of this section,
 7-3     this Act applies only to the adoption of an ad valorem tax rate for
 7-4     a tax year that begins on or after January 1, 2000.
 7-5           (c)  This Act applies to the adoption of an ad valorem tax
 7-6     rate by a taxing unit for the 1999 tax year unless before the
 7-7     effective date of this Act the taxing unit:
 7-8                 (1)  has given notice under Section 26.06(a), Tax Code,
 7-9     as that section existed when the notice was given, of the taxing
7-10     unit's proposed tax rate as required by Section 26.05(d), Tax Code,
7-11     as that section existed when the notice was given; or
7-12                 (2)  has adopted its ad valorem tax rate for the 1999
7-13     tax year under Section 26.05(a), Tax Code.
7-14           SECTION 5.  The importance of this legislation and the
7-15     crowded condition of the calendars in both houses create an
7-16     emergency and an imperative public necessity that the
7-17     constitutional rule requiring bills to be read on three several
7-18     days in each house be suspended, and this rule is hereby suspended.