H.B. 939 78(R)    BILL ANALYSIS


H.B. 939
By: Isett
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Chapter 26 of the Property Tax Code requires taxing units to comply with
truth-in-taxation laws in adopting their tax rate.  These laws serve two
purposes:  1)  to make taxpayers aware of tax rate proposals, and 2) to
allow taxpayers, in certain cases, to roll back or limit a tax increase.
The goal of HB 939 is to further empower and better inform local taxpayers
and change the process by which higher appraisals automatically provide
new tax revenue to taxing entities.   

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution.  

ANALYSIS

HB 939 moves the maintenance and operation rollback rate for all taxing
units except school districts from 108% to 104%.  Cities and counties that
collect more than $5 million in annual property tax revenue would be
required to publish special notices and hold a public hearing before
adopting a tax rate that exceeds the lower of the rollback rate or 100% of
the effective rate. 
   
EFFECTIVE DATE

September 1, 2003.  The change in law made applies to the ad valorem tax
rate of a taxing unit beginning with the 2003 tax year, or if the
governing body of a taxing unit has adopted an ad valorem tax rate for the
taxing unit for the 2003 tax year before September 1, 2003, the change in
law shall begin with the 2004 tax year.