By: Isett, Bohac, Eissler, Gattis, Crabb, H.B. No. 1006
et al.
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 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 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 1.05
[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 3. 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) The effective tax rate and the rollback tax rate for a
taxing unit calculated under any other provision of this chapter
are increased by the rate that, if applied to current total value,
would impose an amount of taxes equal to the amount the taxing unit
is required to spend to comply with or implement an unfunded state
mandate in the budget year for which the taxes will be imposed. If
the taxing unit is a county or a municipality, in the formula for
calculating the rollback tax rate under any other provision of this
chapter, the governing body of the taxing unit 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 the taxing unit adopts a
tax rate, if the amount the taxing unit 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
taxing unit 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 taxing unit 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 of this code, Section 44.004, Education
Code, or Section 49.236, Water Code.
(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 comptroller 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 comptroller 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 comptroller shall deliver the list prepared under
Subsection (g) to the secretary of state for publication in the
Texas Register.
(i) A taxing unit that believes it is subject to an unfunded
state mandate that is not listed by the comptroller under
Subsection (g) must apply in writing to the comptroller for a
determination as to whether the taxing unit is subject to an
unfunded state mandate. The comptroller shall make the
determination as soon as practicable and send a copy of the
determination to the chief executive officer of the taxing unit. If
the comptroller determines that an unfunded mandate exists, the
comptroller 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 4. Section 26.05, Tax Code, is amended by amending
Subsection (d) and adding Subsection (g) to read as follows:
(d) The governing body of a taxing unit other than a school
district and other than a county or municipality to which
Subsection (g) applies 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 to which this
subsection applies 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.
(g) This subsection applies only to a county or municipality
for which the total tax rate proposed for the current tax year would
impose taxes for maintenance and operations in an amount of $5
million or more when applied to the current total value for the
county or municipality. The governing body of the county or
municipality may not adopt a tax rate that exceeds 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 26.06 and 26.065. The governing
body of a county or municipality to which this subsection applies
shall reduce a tax rate set by law or by vote of the electorate to
the effective tax rate and may not adopt a higher rate unless it
first complies with Section 26.06.
SECTION 5. Section 26.06, Tax Code, is amended by amending
Subsections (b), (d), and (e) and adding Subsection (h) to read as
follows:
(b) The notice of a public hearing to be conducted by the
governing body of a taxing unit other than a county or a
municipality to which Section 26.05(g) applies 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 and the proposed tax rate, expressed as an amount per $100;
(A-1) the unit's effective tax rate calculated
under this chapter;
(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 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;
(E-1) 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 if the
effective tax rate is adopted as the tax rate for the unit; [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 that would [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; and
(F-1) the difference between the amounts of tax
calculated under Paragraphs (D) and (E-1), expressed in dollars and
cents, and described as the increase or decrease, as applicable, in
the tax that would be imposed by the unit on the average residence
homestead in the current year if the effective tax rate is adopted
as the tax rate for the unit.
(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 of a taxing
unit other than a county or a municipality to which Section 26.05(g)
applies 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 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).
"(Names of all members of the governing body, showing how
each one voted on the proposal to consider the tax increase or, if
one or more were absent, indicating the absences.)
"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 of a taxing unit other than a county or a municipality to which
Section 26.05(g) applies 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. If the governing
body of a county or a municipality to which Section 26.05(g) applies
does not adopt a tax rate that exceeds 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 effective tax rate.
(h) This subsection applies only to a county or a
municipality to which Section 26.05(g) applies. Subsections (b)
and (d) govern the notice of the public hearing to be conducted by
the governing body of the county or municipality and the notice of
the meeting of the governing body to vote on the tax rate, except
that:
(1) the statement otherwise required by Subsection
(b)(1) must be in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"The (name of the county or municipality) 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 the effective tax rate calculated
under this chapter) percent.
"The public hearing will be held on (date and time) at
(meeting place).
"(Names of all members of county or municipal 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) the notice required by Subsection (d) must state
the following:
"NOTICE OF VOTE ON TAX RATE
"The (name of the county or municipality) conducted a public
hearing on a proposal to increase the total tax revenues of the
(county or municipality) from properties on the tax roll in the
preceding year by (percentage by which proposed tax rate exceeds
the effective tax rate calculated under this chapter) percent on
(date and time public hearing was conducted).
"The (governing body of the county or municipality) 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)."
SECTION 6. 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)(1) or (h)(1), as applicable,
and must contain information that is substantially the same as the
information required by Section 26.06(b)(2).
SECTION 7. 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 8. 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 9. 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 total tax
rate proposed for the current tax year would impose taxes in an
amount that does not exceed $5 million for maintenance and
operations when applied to the current total value for the county or
municipality.
(a-1) Sections 26.07 and 26.08 do not apply to a taxing unit
to which this section applies.
(a-2) 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.
(b) If the governing body of a junior college district
adopts a tax rate that exceeds the rollback tax rate calculated as
provided by this chapter, the qualified voters of the district 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.
(c) A petition is valid only if:
(1) it states that it is intended to require an
election in the junior college district 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 district 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.
(d) 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.
(e) 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 junior college district 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 junior college district) for the
current year from (the rate adopted) to (the rollback tax rate
calculated as provided by this chapter)."
(f) If a majority of the qualified voters voting on the
question in the election favor the proposition, the tax rate for the
junior college district 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.
(g) 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 junior college district 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.
(h) 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 junior college district 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 junior college district 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.
(i) Section 33.08(b) applies to a tax bill sent under
Subsection (g).
(j) Sections 31.12(a) and (b) apply to a refund due under
Subsection (h). Liability for the refund arises on the date the
election is canvassed.
SECTION 10. 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 11. (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 12. 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.