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.