1-1 By: Cain S.B. No. 693
1-2 (In the Senate - Filed February 24, 1999; March 1, 1999, read
1-3 first time and referred to Committee on State Affairs;
1-4 March 29, 1999, reported favorably, as amended, by the following
1-5 vote: Yeas 8, Nays 0; March 29, 1999, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Cain
1-7 Amend S.B. No. 693 as follows:
1-8 (1) Add a new SECTION 1 to read as follows:
1-9 SECTION 1. Subsection (e), Section 26.04, Tax Code, is
1-10 amended to read as follows:
1-11 (e) By August 7 or as soon thereafter as practicable, the
1-12 designated officer or employee shall submit the rates to the
1-13 governing body. He shall deliver by mail to each property owner in
1-14 the unit or publish in a newspaper in the form prescribed by the
1-15 comptroller:
1-16 (1) the effective tax rate, the rollback tax rate, and
1-17 an explanation of how they were calculated;
1-18 (2) the estimated amount of interest and sinking fund
1-19 balances and the estimated amount of maintenance and operation or
1-20 general fund balances remaining at the end of the current fiscal
1-21 year that are not encumbered with or by corresponding existing debt
1-22 obligation, except that for a school district, estimated funds
1-23 necessary for the operation of the district prior to the receipt of
1-24 the first state education aid payment in the succeeding school year
1-25 shall be subtracted from the estimated fund balances;
1-26 (3) a schedule of the unit's debt obligations showing:
1-27 (A) the amount of principal and interest that
1-28 will be paid to service the unit's debts in the next year from
1-29 property tax revenue, including payments of lawfully incurred
1-30 contractual obligations providing security for the payment of the
1-31 principal of and interest on bonds and other evidences of
1-32 indebtedness issued on behalf of the unit by another political
1-33 subdivision and, if the unit is created under Section 52, Article
1-34 III, or Section 59, Article XVI, Texas Constitution, payments on
1-35 debts that the unit anticipates to incur in the next calendar year;
1-36 (B) the amount by which taxes imposed for debt
1-37 are to be increased because of the unit's anticipated collection
1-38 rate; and
1-39 (C) the total of the amounts listed in
1-40 Paragraphs (A)-(B), less any amount collected in excess of the
1-41 previous year's anticipated collections certified as provided in
1-42 Subsection (b); and
1-43 (4) the amount of additional sales and use tax revenue
1-44 anticipated in calculations under Section 26.041;
1-45 (5) a statement that the adoption of the effective tax
1-46 rate would result in an increase or decrease, as applicable, of
1-47 total property taxes levied in the unit as compared to last year's
1-48 levy, and the amount of such increase or decrease;
1-49 (6) in the year that a taxing unit calculates an
1-50 adjustment under Subsection (i) or (j), the unit shall publish a
1-51 schedule that includes the following elements:
1-52 (A) the name of the unit discontinuing the
1-53 department, function, or activity;
1-54 (B) the amount of property tax revenue spent by
1-55 the unit listed under Paragraph (A) to operate the discontinued
1-56 department, function, or activity in the 12 months preceding the
1-57 month in which the calculations required by this chapter are made;
1-58 and
1-59 (C) the name of the unit that operates a
1-60 distinct department, function, or activity in all or a majority of
1-61 the territory of a taxing unit that has discontinued operating the
1-62 distinct department, function, or activity; and
1-63 (7) [(6)] in the year following the year in which a
1-64 taxing unit raised its rollback rate as required by Subsection (j),
1-65 the taxing unit shall publish a schedule that includes the
2-1 following elements:
2-2 (A) the amount of property tax revenue spent by
2-3 the unit to operate the department, function, or activity for which
2-4 the taxing unit raised the rollback rate as required by Subsection
2-5 (j) for the 12 months preceding the month in which the calculations
2-6 required by this chapter are made; and
2-7 (B) the amount published by the unit in the
2-8 preceding tax year under Subdivision (6)(B) [(5)(B)].
2-9 (2) Renumber subsequent sections of the bill accordingly.
2-10 A BILL TO BE ENTITLED
2-11 AN ACT
2-12 relating to public notice of and public hearings on proposed ad
2-13 valorem tax rates.
2-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
2-15 SECTION 1. Subsection (d), Section 26.05, Tax Code, is
2-16 amended to read as follows:
2-17 (d) The governing body may not adopt a tax rate that exceeds
2-18 the effective tax rate calculated as provided by Section 26.04 [if
2-19 applied to the total taxable value would impose an amount of taxes
2-20 that exceeds last year's levy] until the governing body [it] has
2-21 held a public hearing on the proposed tax rate and has otherwise
2-22 complied with Section 26.06.
2-23 SECTION 2. Subsections (a), (b), (d), and (e), Section
2-24 26.06, Tax Code, are amended to read as follows:
2-25 (a) A public hearing required by Section 26.05 [of this
2-26 code] may not be held before the seventh day after the date the
2-27 notice of the public hearing on the proposed tax increase is given.
2-28 The hearing must be on a weekday that is not a public holiday. The
2-29 hearing must be held inside the boundaries of the unit in a
2-30 publicly owned building or, if a suitable publicly owned building
2-31 is not available, in a suitable building to which the public
2-32 normally has access. At the hearing, the governing body must
2-33 afford adequate opportunity for proponents and opponents of the tax
2-34 increase to present their views.
2-35 (b) The notice of a public hearing may not be smaller than
2-36 one-quarter page of a standard-size or a tabloid-size newspaper,
2-37 and the headline on the notice must be in 18-point or larger type.
2-38 The notice must:
2-39 (1) contain a statement in the following form:
2-40 "NOTICE OF PUBLIC HEARING ON TAX INCREASE
2-41 "The (name of the taxing unit) will hold a public hearing on
2-42 a proposal to increase total tax revenues from properties on the
2-43 tax roll in the preceding year by (percentage by which [taxes to be
2-44 imposed under] proposed tax rate exceeds effective tax rate
2-45 calculated under Section 26.04 [exceed last year's levy]) percent.
2-46 Your individual taxes may increase at a greater or lesser rate, or
2-47 even decrease, depending on the change in the taxable value of your
2-48 property in relation to the change in taxable value of all other
2-49 property and the tax rate that is adopted.
2-50 "The public hearing will be held on (date and time) at
2-51 (meeting place).
2-52 "(Names of all members of the governing body, showing how
2-53 each voted on the proposal to consider the tax increase [in total
2-54 tax revenues] or, if one or more were absent, indicating the
2-55 absences.)"; and
2-56 (2) contain the following information:
2-57 (A) the unit's adopted tax rate for the
2-58 preceding year and the proposed tax rate, expressed as an amount
2-59 per $100;
2-60 (B) the difference, expressed as an amount per
2-61 $100 and as a percent increase or decrease, as applicable, in the
2-62 proposed tax rate compared to the adopted tax rate for the
2-63 preceding year;
2-64 (C) the average appraised value of a residence
2-65 homestead in the taxing unit in the preceding year and in the
2-66 current year; the unit's homestead exemption, other than an
2-67 exemption available only to disabled persons or persons 65 years of
3-1 age or older, applicable to that appraised value in each of those
3-2 years; and the average taxable value of a residence homestead in
3-3 the unit in each of those years, disregarding any homestead
3-4 exemption available only to disabled persons or persons 65 years of
3-5 age or older;
3-6 (D) the amount of tax that would have been
3-7 imposed by the unit in the preceding year on a residence homestead
3-8 appraised at the average appraised value of a residence homestead
3-9 in that year, disregarding any homestead exemption available only
3-10 to disabled persons or persons 65 years of age or older;
3-11 (E) the amount of tax that would be imposed by
3-12 the unit in the current year on a residence homestead appraised at
3-13 the average appraised value of a residence homestead in the current
3-14 year, disregarding any homestead exemption available only to
3-15 disabled persons or persons 65 years of age or older, if the
3-16 proposed tax rate is adopted; and
3-17 (F) the difference between the amounts of tax
3-18 calculated under Paragraphs (D) and (E), expressed in dollars and
3-19 cents and described as the annual increase or decrease, as
3-20 applicable, in the tax to be imposed by the unit on the average
3-21 residence homestead in the unit in the current year if the proposed
3-22 tax rate is adopted.
3-23 (d) At the public hearing the governing body shall announce
3-24 the date, time, and place of the meeting at which it will vote on
3-25 the proposed tax rate [to increase total tax revenues]. After the
3-26 hearing the governing body [it] shall give notice of the meeting at
3-27 which it will vote on the proposed tax rate [to increase total tax
3-28 revenues] and the notice shall be in the same form as prescribed by
3-29 Subsections (b) and (c), except that it must state the following:
3-30 "NOTICE OF VOTE ON TAX RATE
3-31 "The (name of the taxing unit) conducted a public hearing on
3-32 a proposal to increase the total tax revenues of the (name of the
3-33 taxing unit) from properties on the tax roll in the preceding year
3-34 by (percentage by which [taxes to be imposed under] proposed tax
3-35 rate exceeds effective tax rate calculated under Section 26.04
3-36 [exceed last year's levy]) percent on (date and time public hearing
3-37 was conducted).
3-38 "The (governing body of the taxing unit) is scheduled to vote
3-39 on the tax rate that will result in that tax increase at a public
3-40 meeting to be held on (date and time) at (meeting place)."
3-41 (e) The meeting to vote on the tax increase may not be
3-42 earlier than the third day or later than the 14th day after the
3-43 date of the public hearing. The meeting must be held inside the
3-44 boundaries of the unit in a publicly owned building or, if a
3-45 suitable publicly owned building is not available, in a suitable
3-46 building to which the public normally has access. If the governing
3-47 body does not adopt a tax rate that exceeds the effective tax rate
3-48 [would impose an amount of taxes that exceeds last year's levy] by
3-49 the 14th day, it must give a new notice under Subsection (d) before
3-50 it may adopt a rate that exceeds the effective tax rate [would
3-51 impose an amount of taxes that exceeds last year's levy].
3-52 SECTION 3. Subsection (b), Section 25.19, Tax Code, is
3-53 amended to read as follows:
3-54 (b) The chief appraiser shall separate real from personal
3-55 property and include in the notice for each:
3-56 (1) a list of the taxing units in which the property
3-57 is taxable;
3-58 (2) the appraised value of the property in the
3-59 preceding year;
3-60 (3) the taxable value of the property in the preceding
3-61 year for each taxing unit taxing the property;
3-62 (4) the appraised value of the property for the
3-63 current year and the kind and amount of each partial exemption, if
3-64 any, approved for the current year;
3-65 (5) if the appraised value is greater than it was in
3-66 the preceding year:
3-67 (A) the effective tax rate that would be
3-68 announced pursuant to Chapter 26 if the total values being
3-69 submitted to the appraisal review board were to be approved by the
4-1 board with an explanation that that rate would raise the same
4-2 amount of revenue from property taxed in the preceding year as the
4-3 unit raised for those purposes in the preceding year;
4-4 (B) the amount of tax that would be imposed on
4-5 the property on the basis of the rate described by Paragraph (A);
4-6 and
4-7 (C) a statement that the governing body of the
4-8 unit may not adopt a rate that will increase tax revenues for
4-9 operating purposes from properties taxed in [above tax revenues
4-10 for] the preceding year without publishing notice in a newspaper
4-11 that it is considering a tax increase and holding a hearing for
4-12 taxpayers to discuss the tax increase;
4-13 (6) in italic typeface, the following statement: "The
4-14 Texas Legislature does not set the amount of your local taxes.
4-15 Your property tax burden is decided by your locally elected
4-16 officials, and all inquiries concerning your taxes should be
4-17 directed to those officials";
4-18 (7) a detailed explanation of the time and procedure
4-19 for protesting the value;
4-20 (8) the date and place the appraisal review board will
4-21 begin hearing protests; and
4-22 (9) a brief explanation that:
4-23 (A) the governing body of each taxing unit
4-24 decides whether or not taxes on the property will increase and the
4-25 appraisal district only determines the value of the property; and
4-26 (B) a taxpayer who objects to increasing taxes
4-27 and government expenditures should complain to the governing bodies
4-28 of the taxing units and only complaints about value should be
4-29 presented to the appraisal office and the appraisal review board.
4-30 SECTION 4. (a) This Act takes effect September 1, 1999.
4-31 (b) Except as provided by Subsection (c) of this section,
4-32 this Act applies only to the adoption of an ad valorem tax rate for
4-33 a tax year that begins on or after January 1, 2000.
4-34 (c) This Act applies to the adoption of an ad valorem tax
4-35 rate by a taxing unit for the 1999 tax year unless before the
4-36 effective date of this Act the taxing unit:
4-37 (1) has given notice under Subsection (a), Section
4-38 26.06, Tax Code, as that subsection existed when the notice was
4-39 given, of the taxing unit's proposed tax rate as required by
4-40 Subsection (d), Section 26.05, Tax Code, as that subsection existed
4-41 when the notice was given; or
4-42 (2) has adopted its ad valorem tax rate for the 1999
4-43 tax year under Subsection (a), Section 26.05, Tax Code.
4-44 SECTION 5. The importance of this legislation and the
4-45 crowded condition of the calendars in both houses create an
4-46 emergency and an imperative public necessity that the
4-47 constitutional rule requiring bills to be read on three several
4-48 days in each house be suspended, and this rule is hereby suspended.
4-49 * * * * *