79R3926 SMH-D

By:  Baxter                                                       H.B. No. 1043



A BILL TO BE ENTITLED

AN ACT

relating to the procedures for adoption of an ad valorem tax rate by 
a taxing unit other than a school district.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  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 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.
	SECTION 2.  Section 26.06(e), Tax Code, is amended to read as 
follows:       
	(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 3.  (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 has 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 4.  If any provision of this Act or its application 
to any person or circumstance is held invalid, the invalidity does 
not affect other provisions or applications of this Act that can be 
given effect without the invalid provision or application, and to 
this end the provisions of this Act are severable.
	SECTION 5.  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 September 1, 2005.