By Hilderbran H.B. No. 3579
77R7446 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the imposition by a taxing unit of ad valorem taxes on
1-3 personal property not producing income that is otherwise exempt
1-4 from taxation.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 11.14, Tax Code, is amended by amending
1-7 Subsection (e) and adding Subsections (f)-(k) to read as follows:
1-8 (e) In any tax year, a taxing unit that elects [A political
1-9 subdivision choosing] to tax property otherwise made exempt by this
1-10 section, pursuant to Section 1(e), Article VIII, [Section 1(e), of
1-11 the] Texas Constitution, may not do so until the governing body of
1-12 the taxing unit [political subdivision] has held a public hearing
1-13 on the matter, after having given notice of the hearing at the
1-14 times and in the manner required by this section [subsection], and
1-15 has found that the action will be in the public interest of all the
1-16 residents of that taxing unit [political subdivision. At the
1-17 hearing, all interested persons are entitled to speak and present
1-18 evidence for or against taxing the property. Not later than the
1-19 30th day prior to the date of a hearing held under this subsection,
1-20 notice of the hearing must be:]
1-21 [(1) published in a newspaper having general
1-22 circulation in the political subdivision and in a section of the
1-23 newspaper other than the advertisement section;]
1-24 [(2) not less than one-half of one page in size; and]
2-1 [(3) republished on not less than three separate days
2-2 during the period beginning with the 10th day prior to the hearing
2-3 and ending with the actual date of the hearing].
2-4 (f) A public hearing required by Subsection (e) may not be
2-5 held before the 30th day after the date the notice of the public
2-6 hearing on the proposal to tax the personal property is given. The
2-7 hearing must be on a weekday that is not a public holiday. The
2-8 hearing must be held inside the boundaries of the taxing unit in a
2-9 publicly owned building or, if a suitable publicly owned building
2-10 is not available, in a suitable building to which the public
2-11 normally has access. At the hearing, the governing body must
2-12 afford adequate opportunity for proponents and opponents of the
2-13 proposal to tax the property to present their views.
2-14 (g) The notice of a public hearing may not be smaller than
2-15 one-half page of a standard-size or a tabloid-size newspaper, and
2-16 the headline on the notice must be in 18-point or larger type. The
2-17 notice must:
2-18 (1) contain a statement in the following form:
2-19 "NOTICE OF PUBLIC HEARING ON PROPOSAL TO TAX OTHERWISE
2-20 EXEMPT PERSONAL PROPERTY
2-21 "The (name of the taxing unit) will hold a public hearing on
2-22 a proposal to tax personal property located in the (name of the
2-23 taxing unit) that is otherwise exempt from taxation.
2-24 "The public hearing will be held on (date and time) at
2-25 (meeting place).
2-26 "(Names of all members of the governing body, showing how
2-27 each voted on the proposal to consider taxing the personal property
3-1 or, if one or more were absent, indicating the absences.)"; and
3-2 (2) contain the following information:
3-3 (A) the unit's adopted tax rate for the
3-4 preceding year, expressed as an amount per $100;
3-5 (B) the total amount of taxes imposed on the
3-6 personal property in the preceding year, if the taxing unit taxed
3-7 that property in the preceding year;
3-8 (C) the unit's proposed tax rate for the current
3-9 tax year, expressed as an amount per $100; and
3-10 (D) the total amount of taxes that would be
3-11 imposed on the personal property in the current tax year, if the
3-12 taxing unit elects to tax the personal property in the current tax
3-13 year.
3-14 (h) The notice may be delivered by mail to each property
3-15 owner in the taxing unit, or the notice may be published in a
3-16 newspaper. If the notice is published in a newspaper, the notice
3-17 may not be in the part of the paper in which legal notices and
3-18 classified advertisements appear.
3-19 (i) At the public hearing the governing body shall announce
3-20 the date, time, and place of the meeting at which the governing
3-21 body will vote on the proposal to tax the personal property. After
3-22 the hearing the governing body shall give notice of the meeting at
3-23 which the governing body will vote on the proposal to tax the
3-24 personal property and the notice shall be in the same form as
3-25 prescribed by Subsections (g) and (h), except that the notice must
3-26 state the following:
3-27 "NOTICE OF VOTE ON PROPOSAL TO TAX EXEMPT PERSONAL PROPERTY
4-1 "The (name of the taxing unit) conducted a public hearing on
4-2 a proposal to tax personal property that is otherwise exempt from
4-3 taxation on (date and time public hearing was conducted).
4-4 "The (governing body of the taxing unit) is scheduled to vote
4-5 on the proposal to tax personal property that is otherwise exempt
4-6 from taxation at a public meeting to be held on (date and time) at
4-7 (meeting place)."
4-8 (j) The meeting to vote on the proposal to tax the personal
4-9 property may not be earlier than the third day or later than the
4-10 14th day after the date of the public hearing. The meeting must be
4-11 held inside the boundaries of the taxing unit in a publicly owned
4-12 building or, if a suitable publicly owned building is not
4-13 available, in a suitable building to which the public normally has
4-14 access. If the governing body does not take action to tax the
4-15 personal property by the 14th day, the governing body must give a
4-16 new notice under Subsection (i) before the governing body may adopt
4-17 the proposal to tax the property.
4-18 (k) The comptroller by rule shall prescribe the language and
4-19 format to be used in the part of the notice required by Subsection
4-20 (g)(2). A notice under Subsection (g) is not valid if the notice
4-21 does not substantially conform to the language and format
4-22 prescribed by the comptroller under this subsection.
4-23 SECTION 2. This Act takes effect January 1, 2002, and applies
4-24 only to an ad valorem tax year that begins on or after that date.