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79S10018 JD-D
By: Isett H.B. No. 4
A BILL TO BE ENTITLED
AN ACT
relating to certain limitations on the ad valorem tax rates of
certain taxing units.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 25.19, Tax Code, is amended by adding
Subsection (b-1) to read as follows:
(b-1) For real property, in addition to the information
required by Subsection (b), the chief appraiser shall state in a
notice required to be delivered under Subsection (a) the
difference, expressed as a percent increase or decrease, as
applicable, in the appraised value of the property for the current
tax year as compared to the fifth tax year before the current tax
year.
SECTION 2. Section 26.04(c), Tax Code, is amended to read as
follows:
(c) An officer or employee designated by the governing body
shall calculate the effective tax rate and the rollback tax rate for
the unit, where:
(1) "Effective tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
; and
(2) "Rollback tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
1.05 [1.08]) + CURRENT DEBT RATE
SECTION 3. Sections 26.041(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) In the first year in which an additional sales and use
tax is required to be collected, the effective tax rate and rollback
tax rate for the unit are calculated according to the following
formulas:
EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN RATE
and
ROLLBACK RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x 1.05
[1.08]) + CURRENT DEBT RATE - SALES TAX GAIN RATE
where "sales tax gain rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that will
be generated by the additional sales and use tax in the following
year as calculated under Subsection (d) [of this section] by the
current total value.
(b) Except as provided by Subsections (a) and (c) [of this
section], in a year in which a taxing unit imposes an additional
sales and use tax, the rollback tax rate for the unit is calculated
according to the following formula, regardless of whether the unit
levied a property tax in the preceding year:
ROLLBACK RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE X
1.05 [1.08]) / ([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
(CURRENT DEBT RATE - SALES TAX REVENUE RATE)
where "last year's maintenance and operations expense" means the
amount spent for maintenance and operations from property tax and
additional sales and use tax revenues in the preceding year, and
"sales tax revenue rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that will
be generated by the additional sales and use tax in the current year
as calculated under Subsection (d) [of this section] by the current
total value.
(c) In a year in which a taxing unit that has been imposing
an additional sales and use tax ceases to impose an additional sales
and use tax the effective tax rate and rollback tax rate for the
unit are calculated according to the following formulas:
EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS RATE
and
ROLLBACK TAX RATE = [[](LAST YEAR'S MAINTENANCE AND OPERATIONS
EXPENSE X 1.05 [1.08]) / ([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY
VALUE)[]] + CURRENT DEBT RATE
where "sales tax loss rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the amount of sales
and use tax revenue generated in the last four quarters for which
the information is available by the current total value and "last
year's maintenance and operations expense" means the amount spent
for maintenance and operations from property tax and additional
sales and use tax revenues in the preceding year.
SECTION 4. Chapter 26, Tax Code, is amended by adding
Section 26.046 to read as follows:
Sec. 26.046. ROLLBACK RELIEF FOR UNFUNDED STATE MANDATE.
(a) In this section, "state mandate" means a statutory provision
that is enacted by the legislature, or a rule or order implementing
a state statute that is prescribed or issued by a state officer or
state agency in the executive branch of state government, and that
requires a taxing unit to establish, expand, or change an activity
in a way that requires an expenditure of revenue that would not have
been required in the absence of the statutory provision, rule, or
order.
(b) For purposes of this section, a state mandate is
considered to be unfunded during any period for which the state has
not provided, by legislative appropriation or otherwise, for the
affected taxing unit to receive state or federal funds in an amount
estimated to be sufficient to meet the cost of complying with or
implementing the mandate. If the legislature provides for funds by
authorizing or requiring an affected taxing unit to collect a
regulatory or user fee that the state will impose or that a taxing
unit is authorized to impose on persons who engage in an activity
that is the subject of or is directly connected to the subject of
the state mandate, the anticipated revenue from the fee is
considered for purposes of this section to be funds provided by the
state to pay for the costs of the state mandate.
(c) This section does not apply to:
(1) a state mandate the existence of which is
necessary for compliance with a requirement of the Texas
Constitution, a court order, or federal law, including a state
mandate that is necessary for continued participation in a federal
program;
(2) a state statute that creates a criminal offense or
changes the elements of a criminal offense; or
(3) a decision or order by a state officer or state
agency that requires a taxing unit to comply with, or that sanctions
the taxing unit for failure to comply with, a law, rule, or order
that is not an unfunded state mandate to which this section applies.
(d) For a county or municipality, the rollback tax rate
calculated under any other provision of this chapter is increased
by the rate that, if applied to current total value, would impose an
amount of taxes equal to the amount the county or municipality is
required to spend to comply with or implement an unfunded state
mandate in the budget year for which the taxes will be imposed. In
the formula for calculating the rollback tax rate under any other
provision of this chapter, the governing body of the county or
municipality may, at its option, substitute the sum of 1 plus the
consumer price index percentage change, if any, not to exceed eight
percent, for 1.05. For a county or municipality that elects to make
the substitution in the calculation of its rollback tax rate as
authorized by this subsection, notwithstanding Section
26.07(b)(2), a petition authorized by Section 26.07(a) is valid
only if it is signed by a number of registered voters of the county
or municipality equal to at least 10 percent of the number of
registered voters of the taxing unit according to the most recent
official list of registered voters. Not later than July 1 of each
year the state auditor shall determine the consumer price index
percentage change and publish that change in the Texas Register. In
this subsection:
(1) "Consumer price index" means the consumer price
index, as published by the Bureau of Labor Statistics of the United
States Department of Labor, that measures the average changes in
prices of goods and services purchased by urban wage earners and
clerical workers' families and single workers living alone (CPI-W:
Seasonally Adjusted U.S. City Average--All Items).
(2) "Consumer price index percentage change" means the
percentage increase or decrease in the consumer price index for the
most recent state fiscal year for which the information is
available, from the consumer price index for the state fiscal year
preceding that state fiscal year, as calculated by the state
auditor.
(e) In each subsequent year that a county or municipality
adopts a tax rate, if the amount the county or municipality is
required to spend to comply with or implement the unfunded state
mandate is greater than the amount required to be spent for the
mandate in the preceding year, the effective tax rate and the
rollback tax rate for the county or municipality are increased by
the rate that, if applied to current total value, would impose an
amount of taxes equal to the increase in the amount required to be
spent to comply with or implement the mandate in that year.
(f) A county or municipality shall include a notice of an
increase in the effective tax rate and the rollback tax rate made as
provided by this section, including a description of and the
estimated amount of the unfunded state mandate, in the information
published under Sections 26.04 and 26.06.
(g) On or before the September 1 following a regular session
of the legislature and on or before the 90th day after the last day
of a special session of the legislature, the Legislative Budget
Board shall publish a list of legislative mandates for which the
legislature has not provided reimbursement as provided by
Subsection (b) and that were enacted by the legislature during that
legislative session. By that same date the Legislative Budget
Board shall:
(1) remove from the list of legislative mandates from
a previous legislative session a legislative mandate:
(A) for which the legislature has provided
reimbursement as provided by Subsection (b); or
(B) that is no longer in effect; and
(2) add to the list a legislative mandate from a
previous legislative session for which reimbursement was provided
as provided by Subsection (b) in the previous session but for which
reimbursement was not provided in the most recent regular session
or in any subsequent special session.
(h) The Legislative Budget Board shall deliver the list
prepared under Subsection (g) to the secretary of state for
publication in the Texas Register.
(i) A county or municipality that believes it is subject to
an unfunded state mandate that is not listed by the Legislative
Budget Board under Subsection (g) must apply in writing to the
Legislative Budget Board for a determination as to whether the
county or municipality is subject to an unfunded state mandate. The
Legislative Budget Board shall make the determination as soon as
practicable and send a copy of the determination to the chief
executive officer of the county or municipality. If the
Legislative Budget Board determines that an unfunded mandate
exists, the Legislative Budget Board shall add the unfunded mandate
to the list published under Subsection (g) as soon as practicable
and deliver a notice of the addition to the secretary of state for
publication in the Texas Register.
SECTION 5. Sections 26.05(b) and (d), Tax Code, are amended
to read as follows:
(b) A taxing unit may not impose property taxes in any year
until the governing body has adopted a tax rate for that year, and
the annual tax rate must be set by ordinance, resolution, or order,
depending on the method prescribed by law for adoption of a law by
the governing body. The vote on the ordinance, resolution, or order
setting the tax rate must be separate from the vote adopting the
budget. The vote on the ordinance, resolution, or order setting a
tax rate that exceeds the effective tax rate must be a record vote.
A motion to adopt an ordinance, resolution, or order setting a tax
rate that exceeds the effective tax rate must be made in the
following form: "I move that property taxes be increased by the
adoption of a tax rate of (specify tax rate)." If the ordinance,
resolution, or order sets a tax rate that, if applied to the total
taxable value, will impose an amount of taxes to fund maintenance
and operation expenditures of the taxing unit that exceeds the
amount of taxes imposed for that purpose in the preceding year, the
taxing unit must:
(1) include in the ordinance, resolution, or order in
type larger than the type used in any other portion of the document:
(A) the following statement: "THIS TAX RATE WILL
RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
TAX RATE BY ___ (Insert appropriate percentage) PERCENT."; and
(B) if the tax rate exceeds the effective
maintenance and operations rate, the following statement: "THE TAX
RATE WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000
HOME BY APPROXIMATELY $(Insert amount)."; and
(2) include on the home page of any Internet website
operated by the unit:
(A) the following statement: "(Insert name of
unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE
AND OPERATIONS THAN LAST YEAR'S TAX RATE BY ___ (Insert appropriate
percentage) PERCENT."; and
(B) if the tax rate exceeds the effective
maintenance and operations rate, the following statement: "THE TAX
RATE WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000
HOME BY APPROXIMATELY $(Insert amount)."
(d) The governing body of a taxing unit other than a school
district may not adopt a tax rate that exceeds the lower of the
rollback tax rate or [103 percent of] the effective tax rate
calculated as provided by this chapter until the governing body has
held two [a] public hearings [hearing] on the proposed tax rate and
has otherwise complied with Section 26.06 and Section 26.065. The
governing body of a taxing unit shall reduce a tax rate set by law or
by vote of the electorate to the lower of the rollback tax rate or
[103 percent of] the effective tax rate and may not adopt a higher
rate unless it first complies with Section 26.06.
SECTION 6. Sections 26.06(a), (b) as amended by S.B. No.
567, Acts of the 79th Legislature, Regular Session, 2005, (c), (d),
and (e), Tax Code, are amended to read as follows:
(a) A public hearing required by Section 26.05 may not be
held before the seventh day after the date the notice of the public
hearing [on the proposed tax increase] is given. The second hearing
may not be held earlier than the third day after the date of the
first hearing. Each [The] hearing must be on a weekday that is not a
public holiday. Each [The] hearing must be held inside the
boundaries of the unit in a publicly owned building or, if a
suitable publicly owned building is not available, in a suitable
building to which the public normally has access. At the hearings
[hearing], the governing body must afford adequate opportunity for
proponents and opponents of the tax increase to present their
views.
(b) The notice of each of the [a] public hearings [hearing]
may not be smaller than one-quarter page of a standard-size or a
tabloid-size newspaper, and the headline on the notice must be in
24-point or larger type. The notice must[:
[(1)] contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"The (name of the taxing unit) will hold a public hearing on a
proposal to increase total tax revenues from properties on the tax
roll in the preceding tax year by (percentage by which proposed tax
rate exceeds lower of rollback tax rate or effective tax rate
calculated under this chapter) percent.
"Last year, the (name of taxing unit) property tax rate was
$(insert tax rate adopted in preceding tax year). That rate raised
$(insert total amount of taxes imposed in the preceding tax year), a
portion of which was used to fund operations such as (insert sample
descriptions of unit's operations).
"This year, (name of taxing unit) is proposing a property tax
rate of $(insert proposed tax rate). That rate would raise $(insert
total amount of taxes that would be imposed), which is $(insert
appropriate amount) more than the taxes imposed last year.
"There will be two public hearings to consider that increase.
The first public hearing will be held on (date and time) at (meeting
place). The second hearing will be held on (date and time) at
(meeting place).
"You have a right to attend the hearings and make comments.
You are encouraged to attend and make comments if you wish." [Your
individual taxes may increase at a greater or lesser rate, or even
decrease, depending on the change in the taxable value of your
property in relation to the change in taxable value of all other
property and the tax rate that is adopted.
["The public hearing will be held on (date and time) at
(meeting place).
["(Names of all members of the governing body, showing how
each voted on the proposal to consider the tax increase or, if one
or more were absent, indicating the absences.)"; and
[(2) contain the following information:
[(A) a section entitled "Comparison of Proposed
Budget with Last Year's Budget," which must show the difference,
expressed as a percent increase or decrease, as applicable, in the
amount budgeted in the preceding fiscal year and the amount
budgeted for the fiscal year that begins in the current tax year for
each of the following:
[(i) maintenance and operations;
[(ii) debt service; and
[(iii) total expenditures;
[(B) a section entitled "Total Appraised Value
and Total Taxable Value," which must show the total appraised value
and the total taxable value of all property and the total appraised
value and the total taxable value of new property taxable by the
unit in the preceding tax year and the current tax year as
calculated under Section 26.04;
[(C) the total amount of the outstanding and
unpaid bonded indebtedness of the taxing unit;
[(D) the unit's adopted tax rate for the
preceding tax year and the proposed tax rate, expressed as an amount
per $100;
[(E) the difference, expressed as an amount per
$100 and as a percent increase or decrease, as applicable, in the
proposed tax rate compared to the adopted tax rate for the preceding
tax year;
[(F) the average appraised value of a residence
homestead in the taxing unit in the preceding tax year and in the
current tax year; the unit's homestead exemption, other than an
exemption available only to disabled persons or persons 65 years of
age or older, applicable to that appraised value in each of those
years; and the average taxable value of a residence homestead in the
unit in each of those years, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older;
[(G) the amount of tax that would have been
imposed by the unit in the preceding tax year on a residence
homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older;
[(H) the amount of tax that would be imposed by
the unit in the current tax year on a residence homestead appraised
at the average appraised value of a residence homestead in the
current tax year, disregarding any homestead exemption available
only to disabled persons or persons 65 years of age or older, if the
proposed tax rate is adopted; and
[(I) the difference between the amounts of tax
calculated under Paragraphs (G) and (H), expressed in dollars and
cents and described as the annual increase or decrease, as
applicable, in the tax to be imposed by the unit on the average
residence homestead in the unit in the current tax year if the
proposed tax rate is adopted.]
(c) The notice of a public hearing under this section may be
delivered by mail to each property owner in the unit, or [it] may be
published in a newspaper. If the notice is published in a
newspaper, it may not be in the part of the paper in which legal
notices and classified advertisements appear. If the taxing unit
operates an Internet website, the notice must be posted on the
website from the date the notice is first published until the second
public hearing is concluded.
(d) At the public hearings [hearing] the governing body
shall announce the date, time, and place of the meeting at which it
will vote on the proposed tax rate. After each [the] hearing the
governing body shall give notice of the meeting at which it will
vote on the proposed tax rate and the notice shall be in the same
form as prescribed by Subsections (b) and (c), except that it must
state the following:
"NOTICE OF VOTE ON TAX RATE
"The (name of the taxing unit) conducted [a] public hearings
[hearing] on a proposal to increase the total tax revenues of the
(name of the taxing unit) from properties on the tax roll in the
preceding year by (percentage by which proposed tax rate exceeds
lower of rollback tax rate or effective tax rate calculated under
this chapter) percent on (dates [date] and times [time] public
hearings were [hearing was] conducted).
"The (governing body of the taxing unit) is scheduled to vote
on the tax rate that will result in that tax increase at a public
meeting to be held on (date and time) at (meeting place)."
(e) The meeting to vote on the tax increase may not be
earlier than the third day or later than the 14th day after the date
of the second public hearing. The meeting must be held inside the
boundaries of the taxing unit in a publicly owned building or, if a
suitable publicly owned building is not available, in a suitable
building to which the public normally has access. If the governing
body does not adopt a tax rate that exceeds the lower of the
rollback tax rate or [103 percent of] the effective tax rate by the
14th day, it must give a new notice under Subsection (d) before it
may adopt a rate that exceeds the lower of the rollback tax rate or
[103 percent of] the effective tax rate.
SECTION 7. Section 26.065(d), Tax Code, is amended to read
as follows:
(d) The notice of the public hearing required by Subsection
(b) must contain a statement that is substantially the same as the
statement required by Section 26.06(b) [26.06(b)(1) and must
contain information that is substantially the same as the
information required by Section 26.06(b)(2)].
SECTION 8. The heading to Section 26.07, Tax Code, is
amended to read as follows:
Sec. 26.07. ELECTION TO REPEAL INCREASE OF TAXING UNIT
OTHER THAN SCHOOL DISTRICT.
SECTION 9. Section 26.07(b), Tax Code, is amended to read as
follows:
(b) A petition is valid only if:
(1) it states that it is intended to require an
election in the taxing unit on the question of reducing the tax rate
for the current year;
(2) it is signed by a number of registered voters of
the taxing unit equal to at least 10 percent of the number of
registered voters of the taxing unit who voted in the most recent
gubernatorial election according to the most recent official list
of registered voters; and
(3) it is submitted to the governing body on or before
the 90th day after the date on which the governing body adopted the
tax rate for the current year.
SECTION 10. Chapter 26, Tax Code, is amended by adding
Section 26.071 to read as follows:
Sec. 26.071. ELECTION TO REPEAL INCREASE OF TAX RATE IN
CERTAIN TAXING UNITS. (a) This section applies only to:
(1) a junior college district; or
(2) a county or municipality for which the proposed
tax rate to impose taxes for maintenance and operations
expenditures for the current tax year would impose taxes in an
amount that does not exceed $5 million when applied to the current
total value for the county or municipality.
(b) Sections 26.07 and 26.08 do not apply to a taxing unit to
which this section applies.
(c) In a formula provided by this chapter for the
calculation of the rollback tax rate of a county or municipality to
which this section applies, 1.08 shall be substituted for 1.05.
(d) If the governing body of a taxing unit adopts a tax rate
that exceeds the rollback tax rate calculated as provided by this
chapter, the qualified voters of the taxing unit by petition may
require that an election be held to determine whether to reduce the
tax rate adopted for the current year to the rollback tax rate
calculated as provided by this chapter.
(e) A petition is valid only if:
(1) it states that it is intended to require an
election in the taxing unit on the question of reducing the tax rate
for the current year;
(2) it is signed by a number of registered voters of
the district equal to at least 10 percent of the number of
registered voters of the taxing unit according to the most recent
official list of registered voters; and
(3) it is submitted to the governing body on or before
the 90th day after the date on which the governing body adopted the
tax rate for the current year.
(f) Not later than the 20th day after the day a petition is
submitted, the governing body shall determine whether the petition
is valid and pass a resolution stating its finding. If the
governing body fails to act within the time allowed, the petition is
treated as if it had been found valid.
(g) If the governing body finds that the petition is valid
(or fails to act within the time allowed), it shall order that an
election be held in the taxing unit on a date not less than 30 or
more than 90 days after the last day on which it could have acted to
approve or disapprove the petition. A state law requiring local
elections to be held on a specified date does not apply to the
election unless a specified date falls within the time permitted by
this section. At the election, the ballots shall be prepared to
permit voting for or against the proposition: "Reducing the tax
rate in (name of taxing unit) for the current year from (the rate
adopted) to (the rollback tax rate calculated as provided by this
chapter)."
(h) If a majority of the qualified voters voting on the
question in the election favor the proposition, the tax rate for the
taxing unit for the current year is the rollback tax rate calculated
as provided by this chapter; otherwise, the tax rate for the current
year is the one adopted by the governing body.
(i) If the tax rate is reduced by an election called under
this section after tax bills for the unit are mailed, the assessor
for the taxing unit shall prepare and mail corrected tax bills. The
collector shall include with the bill a brief explanation of the
reason for and effect of the corrected bill. The date on which the
taxes become delinquent for the year is extended by a number of days
equal to the number of days between the date the first tax bills
were sent and the date the corrected tax bills were sent.
(j) If a property owner pays taxes calculated using the
higher tax rate when the rate is reduced by an election called under
this section, the taxing unit shall refund the difference between
the amount of taxes paid and the amount due under the reduced rate
if the difference between the amount of taxes paid and the amount
due under the reduced rate is $1 or more. If the difference between
the amount of taxes paid and the amount due under the reduced rate
is less than $1, the taxing unit shall refund the difference on
request of the taxpayer. An application for a refund of less than
$1 must be made within 90 days after the date the refund becomes due
or the taxpayer forfeits the right to the refund.
(k) Section 33.08(b) applies to a tax bill sent under
Subsection (i).
(l) Sections 31.12(a) and (b) apply to a refund due under
Subsection (j). Liability for the refund arises on the date the
election is canvassed.
SECTION 11. Section 31.01, Tax Code, is amended by amending
Subsection (c) and adding Subsection (c-1) to read as follows:
(c) The tax bill or a separate statement accompanying the
tax bill shall:
(1) identify the property subject to the tax;
(2) state the appraised value, assessed value, and
taxable value of the property;
(3) if the property is land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, state the market value and the
taxable value for purposes of deferred or additional taxation as
provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
(4) state the assessment ratio for the unit;
(5) state the type and amount of any partial exemption
applicable to the property, indicating whether it applies to
appraised or assessed value;
(6) state the total tax rate for the unit;
(7) state the amount of tax due, the due date, and the
delinquency date;
(8) explain the payment option and discounts provided
by Sections 31.03 and 31.05, if available to the unit's taxpayers,
and state the date on which each of the discount periods provided by
Section 31.05 concludes, if the discounts are available;
(9) state the rates of penalty and interest imposed
for delinquent payment of the tax;
(10) include the name and telephone number of the
assessor for the unit and, if different, of the collector for the
unit; [and]
(11) for real property, state the differences,
expressed as a percent increase or decrease, as applicable, in the
following for the current tax year as compared to the fifth tax year
before that tax year:
(A) the appraised value of the property; and
(B) the amount of taxes imposed on the property
by the unit; and
(12) include any other information required by the
comptroller.
(c-1) If any information required by Subsection (c)(11) to
be included in a tax bill or separate statement is unavailable, the
tax bill or statement must state that the information is not
available for that year. This subsection expires December 31,
2011.
SECTION 12. Section 49.236, Water Code, as added by
Chapters 248 and 335, Acts of the 78th Legislature, Regular
Session, 2003, is reenacted and amended to read as follows:
Sec. 49.236. NOTICE OF TAX HEARING. (a) Before the board
adopts an ad valorem tax rate for the district for debt service,
operation and maintenance purposes, or contract purposes, the board
shall give notice of each meeting of the board at which the adoption
of a tax rate will be considered. The notice must:
(1) contain a statement in substantially the following
form:
"NOTICE OF PUBLIC HEARING ON TAX RATE
"The (name of the district) will hold a public hearing on a
proposed tax rate for the tax year (year of tax levy) on (date and
time) at (meeting place). Your individual taxes may increase or
decrease, depending on the change in the taxable value of your
property in relation to the change in taxable value of all other
property and the tax rate that is adopted.
"(Names of all board members and, if a vote was taken, an
indication of how each voted on the proposed tax rate and an
indication of any absences.)";
(2) contain the following information:
(A) the district's total adopted tax rate for the
preceding year and the proposed tax rate, expressed as an amount per
$100;
(B) the difference, expressed as an amount per
$100 and as a percent increase or decrease, as applicable, in the
proposed tax rate compared to the adopted tax rate for the preceding
year;
(C) the average appraised value of a residence
homestead in the district in the preceding year and in the current
year; the district's total homestead exemption, other than an
exemption available only to disabled persons or persons 65 years of
age or older, applicable to that appraised value in each of those
years; and the average taxable value of a residence homestead in the
district in each of those years, disregarding any homestead
exemption available only to disabled persons or persons 65 years of
age or older;
(D) the amount of tax that would have been
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older;
(E) the amount of tax that would be imposed by the
district in the current year on a residence homestead appraised at
the average appraised value of a residence homestead in that year,
disregarding any homestead exemption available only to disabled
persons or persons 65 years of age or older, if the proposed tax
rate is adopted; and
(F) the difference between the amounts of tax
calculated under Paragraphs (D) and (E), expressed in dollars and
cents and described as the annual percentage increase or decrease,
as applicable, in the tax to be imposed by the district on the
average residence homestead in the district in the current year if
the proposed tax rate is adopted; and
(3) contain a statement in substantially the following
form:
"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
"If taxes on the average residence homestead increase by more
than five [eight] percent, the qualified voters of the district by
petition may require that an election be held to determine whether
to reduce the operation and maintenance tax rate to the rollback tax
rate under Section 49.236(d), Water Code."
(b) Notice of the hearing shall be:
(1) published at least once in a newspaper having
general circulation in the district at least seven days before the
date of the hearing; or
(2) mailed to each owner of taxable property in the
district, at the address for notice shown on the most recently
certified tax roll of the district, at least 10 days before the date
of the hearing.
(c) The notice provided under this section may not be
smaller than one-quarter page of a standard-size or tabloid-size
newspaper of general circulation, and the headline on the notice
must be in 18-point or larger type.
(d) If the governing body of a district adopts a combined
debt service, operation and maintenance, and contract tax rate that
would impose more than 1.05 [1.08] times the amount of tax imposed
by the district in the preceding year on a residence homestead
appraised at the average appraised value of a residence homestead
in the district in that year, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older, the qualified voters of the district by petition may require
that an election be held to determine whether [or not] to reduce the
tax rate adopted for the current year to the rollback tax rate in
accordance with the procedures provided by Section 26.07 [Sections
26.07(b)-(g) and 26.081], Tax Code. For purposes of Section 26.07,
Tax Code, [Sections 26.07(b)-(g)] and this subsection, the rollback
tax rate is the current year's debt service and contract tax rates
plus the operation and maintenance tax rate that would impose 1.05
[1.08] times the amount of the operation and maintenance tax
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in the district in that year, disregarding any homestead
exemption available only to disabled persons or persons 65 years of
age or older.
SECTION 13. Section 26.06(f), Tax Code, is repealed.
SECTION 14. House Bill No. 1984, Acts of the 79th
Legislature, Regular Session, 2005, is repealed and does not take
effect.
SECTION 15. (a) If this Act takes effect before September
1, 2005, Sections 1, 2, 3, 4, and 5, Senate Bill No. 18, Acts of the
79th Legislature, Regular Session, 2005, do not take effect.
(b) If this Act takes effect after September 1, 2005, a
statute amended by this Act supersedes that statute as amended by
Senate Bill No. 18, Acts of the 79th Legislature, Regular Session,
2005.
SECTION 16. (a) The change in law made by this Act applies
to the ad valorem tax rate of a taxing unit beginning with the 2005
tax year, except as provided by Subsection (b) of this section.
(b) If the governing body of a taxing unit adopted an ad
valorem tax rate for the taxing unit for the 2005 tax year before
the effective date of this Act, the change in law made by this Act
applies to the ad valorem tax rate of that taxing unit beginning
with the 2006 tax year, and the law in effect when the tax rate was
adopted applies to the 2005 tax year with respect to that taxing
unit.
SECTION 17. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect on the 91st day after the last day of
the legislative session.