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Amend CSHB 1006 by striking all below the enacting clause and
substituting the following:
SECTION 1. 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
1.04 [1.08]) + CURRENT DEBT RATE
SECTION 2. 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 1.04
[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
1.04 [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 1.04 [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 3. Section 26.05(d), Tax Code, is amended to read as
follows:
(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 a public hearing on the proposed tax rate and has otherwise
complied with Sections [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 4. Sections 26.06(b), (d), and (e), Tax Code, are
amended to read as follows:
(b) The notice of a public 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 18-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 year by (percentage by which proposed tax rate
exceeds [lower of rollback tax rate or] effective tax rate
calculated under this chapter) percent. 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) the unit's adopted tax rate for the preceding
year, the unit's effective tax rate for the current 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 effective [adopted] tax rate [for
the preceding year];
(C) the average appraised value of a residence
homestead in the taxing unit in the preceding year and in the
current 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;
(D) the amount of tax that would have been
imposed by the unit 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
unit in the current year on a residence homestead appraised at the
average appraised value of a residence homestead in the current
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 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 year if the proposed
tax rate is adopted.
(d) At the public 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 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 INCREASE [RATE]
"The (name of the taxing unit) conducted a public 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 (date and time public 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 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 5. Section 26.07, Tax Code, is amended by amending
Subsections (b) and (d) and adding Subsection (b-1) 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) except as provided by Subsection (b-1), 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 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.
(b-1) For a county or municipality for which the total tax
rate adopted for the current tax year would impose taxes in an
amount of more than $5 million when applied to the current total
value for the county or municipality, a petition 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 registered voters
of the county or municipality who voted in the most recent
gubernatorial election according to the most recent official list
of registered voters.
(d) If the governing body finds that the petition is valid
(or fails to act within the time allowed), it shall order that the
[an] election be held in the taxing unit on the next uniform
election [a] date prescribed by Section 41.001, Election Code, that
is not less than 45 [30 or more than 90] days after the [last] day on
which the governing body adopted the proposed tax rate and that
affords enough time to hold the election in the manner provided by
law [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)."
SECTION 6. 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 INCREASE [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, the unit's effective tax rate for the current 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 effective [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 four [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 1.04 [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 Sections 26.07(b)-(g)
and 26.081, Tax Code. For purposes of 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 1.04 [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 7. (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 8. 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.