79R6926 JD-D
By: Bohac H.B. No. 3298
A BILL TO BE ENTITLED
AN ACT
relating to providing tax relief and protection for ad valorem tax
payers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.12(d), Tax Code, is amended to read as
follows:
(d) For purposes of this section, the appraisal ratio of
real property [a homestead] to which Section 23.23 applies is the
ratio of the property's market value as determined by the appraisal
district or appraisal review board, as applicable, to the market
value of the property according to law. The appraisal ratio is not
calculated according to the appraised value of the property as
limited by Section 23.23.
SECTION 2. Section 23.23, Tax Code, is amended to read as
follows:
Sec. 23.23. LIMITATION ON APPRAISED VALUE OF CERTAIN
RESIDENTIAL REAL PROPERTY [RESIDENCE HOMESTEAD]. (a) The
appraised value of qualified residential real property [a residence
homestead] for a tax year may not exceed the lesser of:
(1) the market value of the property; or
(2) the sum of:
(A) three [10] percent of the appraised value of
the property for the last year in which the property was appraised
for taxation times the number of years since the property was last
appraised;
(B) the appraised value of the property for the
last year in which the property was appraised; and
(C) the market value of all new improvements to
the property.
(b) When appraising qualified residential real property [a
residence homestead], the chief appraiser shall:
(1) appraise the property at its market value; and
(2) include in the appraisal records both the market
value of the property and the amount computed under Subsection
(a)(2).
(c) The limitation provided by Subsection (a) takes effect
as to a parcel of qualified residential real property [residence
homestead] on January 1 of the tax year following the first tax year
in which the owner owns [qualifies] the property on January 1 and in
which the owner qualifies the property as a residence homestead,
uses the property primarily for the owner's residential purposes,
or, if the property is a single-family residence, leases or rents
the property to a tenant for the tenant's residential purposes,
except that if the property qualifies as the residence homestead of
the owner [for an exemption] under Section 11.13 in the tax year in
which the owner acquires the property, the limitation takes effect
on January 1 of the tax year following that tax year. Except as
provided by Subsections (d) and (e), the [. The] limitation expires
on January 1 of the [first] tax year following:
(1) the tax year in which [that neither] the owner of
the property ceases to own the property; or
(2) a tax year in which none of the following applies:
(A) the property owner qualifies the property as
a residence homestead;
(B) the owner uses the property primarily for the
owner's residential purposes; or
(C) the single-family residence ceases to be used
for residential purposes by a tenant of the property owner for more
than a temporary period [when the limitation took effect nor the
owner's spouse or surviving spouse qualifies for an exemption under
Section 11.13].
(d) If qualified residential real property subject to a
limitation under Subsection (a) qualifies for an exemption under
Section 11.13 when the ownership of the property is transferred to
the owner's spouse or surviving spouse, the limitation expires on
January 1 of the tax year following the year in which the owner's
spouse or surviving spouse ceases to own the property, unless the
limitation is further continued under this subsection on the
subsequent transfer to a spouse or surviving spouse.
(e) If qualified residential real property subject to a
limitation under Subsection (a), other than a residence homestead,
is owned by two or more persons, the limitation expires on January 1
of the tax year following the year in which the ownership of at
least a 50 percent interest in the property is sold or otherwise
transferred to a person other than those owners.
(f) This section does not apply to property appraised under
Subchapter C, D, E, F, [or] G, or H.
(g) [(e)] In this section:
(1) "New[, "new] improvement" means an improvement to
real property [a residence homestead] that is made after the most
recent appraisal of the property [for the preceding year] and that
increases the market value of the property. The term does not
include ordinary upkeep, repair, or maintenance of an existing
structure or the grounds or another feature of the property.
(2) "Qualified residential real property" means real
property that:
(A) qualifies for an exemption under Section
11.13;
(B) is designed or adapted for residential
purposes and used primarily for residential purposes by the owner
of the property, including the owner-occupied portion of a duplex,
triplex, or other multifamily structure and the residential
portion, not to exceed 20 acres, of farm or ranch property; or
(C) is a single-family residence used for
residential purposes by a tenant of the owner of the property.
(h) [(f)] Notwithstanding Subsections (a) and (g)(1) [(e)]
and except as provided by Subdivision (2), an improvement to
property that would otherwise constitute a new improvement is not
treated as a new improvement if the improvement is a replacement
structure for a structure that was rendered uninhabitable or
unusable by a casualty or by mold or water damage. For purposes of
appraising the property in the tax year in which the structure would
have constituted a new improvement:
(1) the last year in which the property was appraised
for taxation before the casualty or damage occurred is considered
to be the last year in which the property was appraised for taxation
for purposes of Subsection (a)(2)(A); and
(2) the replacement structure is considered to be a
new improvement only to the extent it is a significant improvement
over the replaced structure as that structure existed before the
casualty or damage occurred.
(i) For purposes of applying the limitation provided by
Subsection (a) in the first tax year after the 2005 tax year in
which the qualified residential real property is appraised for
taxation:
(1) the property is considered to have been appraised
for taxation in the 2005 tax year at a market value equal to the
appraised value of the property for that tax year;
(2) a person who acquired in a tax year before the 2005
tax year residential real property that the person owns in the 2005
tax year is considered to have acquired the property on January 1,
2005; and
(3) a person who qualified the property for an
exemption under Section 11.13 as the person's residence homestead
for any portion of the 2005 tax year is considered to have acquired
the property in the 2005 tax year.
(j) This subsection and Subsections (k)-(n) do not apply to
property that qualifies for a residence homestead exemption under
Section 11.13. To receive a limitation under Subsection (a), a
person claiming the limitation must apply for the limitation by
filing an application with the chief appraiser of the appraisal
district. The chief appraiser shall accept and approve or deny an
application. For property appraised by more than one appraisal
district, a separate application must be filed in each appraisal
district to receive the limitation in that district. A limitation
provided by Subsection (a), once allowed, need not be claimed in
subsequent years and applies to the property until the limitation
expires as provided by this section or until the person's
qualification for the limitation ends. However, the chief
appraiser may require a person allowed a limitation in a prior year
to file a new application to confirm the person's current
qualification for the limitation by delivering not later than April
1 a written notice that a new application is required, accompanied
by an appropriate application form, to the person previously
allowed the limitation.
(k) The comptroller, in prescribing the contents of the
application form for a limitation under Subsection (a), shall
ensure that the form requires an applicant to provide the
information necessary to determine the validity of the limitation
claim. The form must require an applicant to provide the
applicant's name and driver's license number, personal
identification certificate number, or social security number. The
comptroller shall include on the form a notice of the penalties
prescribed by Section 37.10, Penal Code, for making or filing an
application containing a false statement and shall include on the
form a statement explaining that the application need not be made
annually and that if the limitation is allowed, the applicant has a
duty to notify the chief appraiser when the applicant's
qualification for the limitation ends. In this subsection,
"driver's license" and "personal identification certificate" have
the meanings assigned by Section 11.43(f).
(l) A person who is required to apply for a limitation under
Subsection (a) to receive the limitation for a tax year must apply
for the limitation not later than May 1 of that year. Except as
provided by Subsection (m), if the person fails to timely file a
completed application, the person may not receive the limitation
for that year.
(m) The chief appraiser shall accept and approve or deny an
application for a limitation under Subsection (a) for a tax year
after the deadline for filing the application has passed if the
application is filed not later than one year after the delinquency
date for the taxes on the property for that tax year. If a late
application is approved after approval of the appraisal records by
the appraisal review board, the chief appraiser shall notify the
collector for each taxing unit in which the property is located. If
the tax has not been paid, the collector shall deduct from the
person's tax bill the difference between the taxes that would have
been due had the property not qualified for the limitation and the
taxes due after taking the limitation into account. If the tax has
been paid, the collector shall refund the difference.
(n) A person who receives a limitation under Subsection (a)
shall notify the appraisal office in writing before May 1 after the
person's qualification for the limitation ends.
SECTION 3. 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
1.03 [1.08]) + CURRENT DEBT RATE
SECTION 4. 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 1.03
[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
1.03 [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 1.03 [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 5. 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 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 6. 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;
(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; 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 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).
"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. 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 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 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)(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 8. Section 26.07, Tax Code, is amended to read as
follows:
Sec. 26.07. ELECTION TO RATIFY TAX [REPEAL] INCREASE OF
TAXING UNIT OTHER THAN SCHOOL DISTRICT. (a) The [If the] governing
body of a taxing unit other than a school district may not adopt
[adopts] a tax rate that exceeds the rollback tax rate calculated as
provided by this chapter without voter approval as provided by this
section. To adopt a tax rate that exceeds the rollback tax rate,
the governing body must adopt the rate as a proposed tax rate and
call an election to permit[,] the qualified voters of the taxing
unit [by petition may require that an election be held to determine
whether or not] to approve or disapprove [reduce] the proposed tax
rate [adopted for the current year to the rollback tax rate
calculated as provided by this chapter].
(b) The [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 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.
[(c) Not later than the 20th day after the day a petition is
submitted, the governing body shall determine whether or not 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.
[(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 a date not less
than 30 or more than 90 days after the [last] day on which the
governing body adopted the proposed tax rate. Section 41.001,
Election Code, [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 specified by that section falls within the time permitted by
this section. At the election, the ballots shall be prepared to
permit voting for or against the proposition: "Approving
["Reducing] the proposed ad valorem tax rate of $_____ per $100
valuation in (name of taxing unit) for the current year, a rate that
is $_____ higher per $100 valuation than the [from (the rate
adopted) to (the] rollback tax rate [calculated as provided by this
chapter)]." The ballot proposition must include the proposed tax
rate and the difference between that rate and the rollback tax rate
in the appropriate places.
(c) [(e)] If a majority of the votes cast [qualified voters
voting on the question] in the election favor the proposition, the
proposition is approved and the tax rate for the [taxing unit for
the] current year is the proposed [rollback] tax rate that was
[calculated as provided by this chapter; otherwise, the tax rate
for the current year is the one] adopted by the governing body.
(d) [(f)] If the proposition is not approved as provided by
Subsection (c), the governing body may not adopt a tax rate for the
taxing unit for the current year that exceeds the taxing unit's
rollback tax rate [is reduced by an election called under this
section after tax bills for the unit are mailed, the assessor for
the unit shall prepare and mail corrected tax bills. He 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].
[(g) 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.]
SECTION 9. 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 for the current tax year
and each of the preceding five tax years:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the unit;
(C) the amount of taxes imposed on the property
by the unit; and
(D) the difference, expressed as a percent
increase or decrease, as applicable, in the amount of taxes imposed
on the property by the unit compared to the amount imposed for the
preceding tax year;
(12) 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 and taxable value of the
property;
(B) the total tax rate for the unit; and
(C) the amount of taxes imposed on the property
by the unit; and
(13) include any other information required by the
comptroller.
(c-1) If for any of the preceding six tax years any
information required by Subsection (c)(11) or (12) 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 10. Sections 31.12(a) and (b), Tax Code, are
amended to read as follows:
(a) If a refund of a tax provided by Section 11.431(b),
[26.07(g),] 26.15(f), 31.11, or 31.111 is paid on or before the 60th
day after the date the liability for the refund arises, no interest
is due on the amount refunded. If not paid on or before that 60th
day, the amount of the tax to be refunded accrues interest at a rate
of one percent for each month or part of a month that the refund is
unpaid, beginning with the date on which the liability for the
refund arises.
(b) For purposes of this section, liability for a refund
arises:
(1) if the refund is required by Section 11.431(b), on
the date the chief appraiser notifies the collector for the unit of
the approval of the late homestead exemption;
(2) [if the refund is required by Section 26.07(g), on
the date the results of the election to reduce the tax rate are
certified;
[(3)] if the refund is required by Section 26.15(f):
(A) for a correction to the tax roll made under
Section 26.15(b), on the date the change in the tax roll is
certified to the assessor for the taxing unit under Section 25.25;
or
(B) for a correction to the tax roll made under
Section 26.15(c), on the date the change in the tax roll is ordered
by the governing body of the taxing unit;
(3) [(4)] if the refund is required by Section 31.11,
on the date the auditor for the taxing unit determines that the
payment was erroneous or excessive or, if the amount of the refund
exceeds the applicable amount specified by Section 31.11(a), on the
date the governing body of the unit approves the refund; or
(4) [(5)] if the refund is required by Section 31.111,
on the date the collector for the taxing unit determines that the
payment was erroneous.
SECTION 11. Section 33.08(b), Tax Code, is amended to read
as follows:
(b) The governing body of the taxing unit or appraisal
district, in the manner required by law for official action, may
provide that taxes that become delinquent on or after June 1 under
Section [26.07(f),] 26.15(e), 31.03, 31.031, 31.032, or 31.04 incur
an additional penalty to defray costs of collection. The amount of
the penalty may not exceed the amount of the compensation specified
in the applicable contract with an attorney under Section 6.30 to be
paid in connection with the collection of the delinquent taxes.
SECTION 12. Section 42.26(d), Tax Code, is amended to read
as follows:
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is [a
residence homestead] subject to the limitation on appraised value
imposed by Section 23.23.
SECTION 13. 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 VOTE ON TAX RATE [TAXPAYERS' RIGHT TO
ROLLBACK ELECTION]
"If taxes on the average residence homestead increase by more
than three [eight] percent, [the qualified voters of the district
by petition may require that] an election must be held to determine
whether to ratify [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 1.03 [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 must be held to determine whether [or not]
to ratify [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 1.03 [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 14. Sections 403.302(d) and (i), Government Code,
are amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any exemptions granted
under Section 11.251, Tax Code;
(6) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(7) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(8) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(9) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(10) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(11) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(12) the amount by which the market value of real
property [a residence homestead] to which Section 23.23, Tax Code,
applies exceeds the appraised value of that property as calculated
under that section.
(i) If the comptroller determines in the annual study that
the market value of property in a school district as determined by
the appraisal district that appraises property for the school
district, less the total of the amounts and values listed in
Subsection (d) as determined by that appraisal district, is valid,
the comptroller, in determining the taxable value of property in
the school district under Subsection (d), shall for purposes of
Subsection (d)(12) subtract from the market value as determined by
the appraisal district of real properties [residence homesteads] to
which Section 23.23, Tax Code, applies the amount by which that
amount exceeds the appraised value of those properties as
calculated by the appraisal district under Section 23.23, Tax Code.
If the comptroller determines in the annual study that the market
value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is not valid, the
comptroller, in determining the taxable value of property in the
school district under Subsection (d), shall for purposes of
Subsection (d)(12) subtract from the market value as estimated by
the comptroller of real properties [residence homesteads] to which
Section 23.23, Tax Code, applies the amount by which that amount
exceeds the appraised value of those properties as calculated by
the appraisal district under Section 23.23, Tax Code.
SECTION 15. This Act applies only to an ad valorem tax year
that begins on or after January 1, 2006.
SECTION 16. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2006.
(b) Sections 1, 2, 12, and 14 of this Act take effect as
provided by Subsection (a) of this section, but only if the
constitutional amendment proposed by the 79th Legislature, Regular
Session, 2005, authorizing a three percent limitation on annual
increases in the appraised value for ad valorem tax purposes of
residential real property is approved by the voters. If that
amendment is not approved by the voters, those sections of this Act
have no effect.