79R2276 JD-D
By: Deuell S.B. No. 567
A BILL TO BE ENTITLED
AN ACT
relating to requiring a taxing unit to include in the public notice
of a hearing on the adoption of an ad valorem tax rate certain
information relating to the taxing unit's budget and appraisal
roll.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.06(b), Tax Code, is 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 tax 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 difference, expressed as a percent
increase or decrease, as applicable, in the amount budgeted in the
preceding fiscal year and the amount budgeted for the fiscal year
that begins in the current tax year for each of the following:
(i) maintenance and operations;
(ii) debt service; and
(iii) total expenditures;
(B) the total appraised value and the total
taxable value of all property and the total appraised value and the
total taxable value of new property taxable by the unit in the
preceding tax year and the current tax year as calculated under
Section 26.04;
(C) the unit's adopted tax rate for the preceding
tax year and the proposed tax rate, expressed as an amount per $100;
(D) [(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 tax year;
(E) [(C)] the average appraised value of a
residence homestead in the taxing unit in the preceding tax year and
in the current tax year; the unit's homestead exemption, other than
an exemption available only to disabled persons or persons 65 years
of age or older, applicable to that appraised value in each of those
years; and the average taxable value of a residence homestead in the
unit in each of those years, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older;
(F) [(D)] the amount of tax that would have been
imposed by the unit in the preceding tax year on a residence
homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older;
(G) [(E)] the amount of tax that would be imposed
by the unit in the current tax year on a residence homestead
appraised at the average appraised value of a residence homestead
in the current tax year, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older, if the proposed tax rate is adopted; and
(H) [(F)] the difference between the amounts of
tax calculated under Paragraphs (F) [(D)] and (G) [(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 tax year if
the proposed tax rate is adopted.
SECTION 2. Section 44.004(c), Education Code, is amended to
read as follows:
(c) The notice of public meeting to discuss and adopt the
budget and the proposed tax rate 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. Subject
to Subsection (d), the notice must:
(1) contain a statement in the following form:
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
"The (name of school district) will hold a public meeting at
(time, date, year) in (name of room, building, physical location,
city, state). The purpose of this meeting is to discuss the school
district's budget that will determine the tax rate that will be
adopted. Public participation in the discussion is invited." The
statement of the purpose of the meeting must be in bold type. In
reduced type, the notice must state: "The tax rate that is
ultimately adopted at this meeting or at a separate meeting at a
later date may not exceed the proposed rate shown below unless the
district publishes a revised notice containing the same information
and comparisons set out below and holds another public meeting to
discuss the revised notice.";
(2) contain a section entitled "Comparison of Proposed
Budget with Last Year's Budget," which must show the difference,
expressed as a percent increase or decrease, as applicable, in the
amounts budgeted for the preceding fiscal year and the amount
budgeted for the fiscal year that begins in the current tax year for
each of the following:
(A) maintenance and operations;
(B) debt service; and
(C) total expenditures;
(3) contain a section entitled "Total Appraised Value
and Total Taxable Value," which must show the total appraised value
and the total taxable value of all property and the total appraised
value and the total taxable value of new property taxable by the
district in the preceding tax year and the current tax year as
calculated under Section 26.04, Tax Code;
(4) contain a section entitled "Comparison of Proposed
Rates with Last Year's Rates," which must:
(A) show in rows the tax rates described by
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
property, for columns entitled "Maintenance & Operations,"
"Interest & Sinking Fund," and "Total," which is the sum of
"Maintenance & Operations" and "Interest & Sinking Fund":
(i) the school district's "Last Year's
Rate";
(ii) the "Rate to Maintain Same Level of
Maintenance & Operations Revenue & Pay Debt Service," which:
(a) in the case of "Maintenance &
Operations," is the tax rate that, when applied to the current
taxable value for the district, as certified by the chief appraiser
under Section 26.01, Tax Code, and as adjusted to reflect changes
made by the chief appraiser as of the time the notice is prepared,
would impose taxes in an amount that, when added to state funds to
be distributed to the district under Chapter 42, would provide the
same amount of maintenance and operations taxes and state funds
distributed under Chapter 42 per student in average daily
attendance for the applicable school year that was available to the
district in the preceding school year; and
(b) in the case of "Interest & Sinking
Fund," is the tax rate that, when applied to the current taxable
value for the district, as certified by the chief appraiser under
Section 26.01, Tax Code, and as adjusted to reflect changes made by
the chief appraiser as of the time the notice is prepared, and when
multiplied by the district's anticipated collection rate, would
impose taxes in an amount that, when added to state funds to be
distributed to the district under Chapter 46 and any excess taxes
collected to service the district's debt during the preceding tax
year but not used for that purpose during that year, would provide
the amount required to service the district's debt; and
(iii) the "Proposed Rate";
(B) contain fourth and fifth columns aligned with
the columns required by Paragraph (A) that show, for each row
required by Paragraph (A):
(i) the "Local Revenue per Student," which
is computed by multiplying the district's total taxable value of
property, as certified by the chief appraiser for the applicable
school year under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, by the total tax rate, and dividing the product
by the number of students in average daily attendance in the
district for the applicable school year; and
(ii) the "State Revenue per Student," which
is computed by determining the amount of state aid received or to be
received by the district under Chapters 42, 43, and 46 and dividing
that amount by the number of students in average daily attendance in
the district for the applicable school year; and
(C) contain an asterisk after each calculation
for "Interest & Sinking Fund" and a footnote to the section that, in
reduced type, states "The Interest & Sinking Fund tax revenue is
used to pay for bonded indebtedness on construction, equipment, or
both. The bonds, and the tax rate necessary to pay those bonds,
were approved by the voters of this district.";
(5) [(3)] contain a section entitled "Comparison of
Proposed Levy with Last Year's Levy on Average Residence," which
must:
(A) show in rows the information described by
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
entitled "Last Year" and "This Year":
(i) "Average Market Value of Residences,"
determined using the same group of residences for each year;
(ii) "Average Taxable Value of Residences,"
determined after taking into account the limitation on the
appraised value of residences under Section 23.23, Tax Code, and
after subtracting all homestead exemptions applicable in each year,
other than exemptions available only to disabled persons or persons
65 years of age or older or their surviving spouses, and using the
same group of residences for each year;
(iii) "Last Year's Rate Versus Proposed
Rate per $100 Value"; and
(iv) "Taxes Due on Average Residence,"
determined using the same group of residences for each year; and
(B) contain the following information:
"Increase (Decrease) in Taxes" expressed in dollars and cents,
which is computed by subtracting the "Taxes Due on Average
Residence" for the preceding tax year from the "Taxes Due on Average
Residence" for the current tax year;
(6) [(4)] contain the following statement in bold
print: "Under state law, the dollar amount of school taxes imposed
on the residence of a person 65 years of age or older or of the
surviving spouse of such a person, if the surviving spouse was 55
years of age or older when the person died, may not be increased
above the amount paid in the first year after the person turned 65,
regardless of changes in tax rate or property value.";
(7) [(5)] contain the following statement in bold
print: "Notice of Rollback Rate: The highest tax rate the district
can adopt before requiring voter approval at an election is (the
school district rollback rate determined under Section 26.08, Tax
Code). This election will be automatically held if the district
adopts a rate in excess of the rollback rate of (the school district
rollback rate)."; and
(8) [(6)] contain a section entitled "Fund Balances,"
which must include the estimated amount of interest and sinking
fund balances and the estimated amount of maintenance and operation
or general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding debt
obligation, less estimated funds necessary for the operation of the
district before the receipt of the first payment under Chapter 42 in
the succeeding school year.
SECTION 3. (a) The change in law made by this Act applies to
the public notice required in connection with the ad valorem tax
rate of a taxing unit beginning with the 2006 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 2006 tax year before
the effective date of this Act, the change in law made by this Act
applies to the public notice required in connection with the ad
valorem tax rate of that taxing unit beginning with the 2007 tax
year, and the law in effect when the tax rate was adopted applies to
the 2006 tax year with respect to that taxing unit.
SECTION 4. 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.