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AN ACT
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relating to the appraisal for ad valorem tax purposes of |
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agricultural or open-space land. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 23, Tax Code, is amended by |
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adding Section 23.25 to read as follows: |
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Sec. 23.25. APPRAISAL OF LAND USED FOR SINGLE-FAMILY |
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RESIDENTIAL PURPOSES THAT IS CONTIGUOUS TO AGRICULTURAL OR |
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OPEN-SPACE LAND WITH COMMON OWNERSHIP. (a) This section applies |
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only to the appraisal of a parcel of land that: |
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(1) is used for single-family residential purposes; |
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and |
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(2) is contiguous to a parcel of land that is: |
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(A) appraised under Subchapter C or D; and |
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(B) owned by: |
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(i) the same person; |
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(ii) the person's spouse; |
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(iii) an individual related within the |
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first degree of consanguinity to the person; or |
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(iv) a legal entity that is affiliated with |
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the person. |
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(b) In appraising the parcel of land, the chief appraiser |
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shall: |
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(1) determine the price for which the parcel of land |
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being appraised and the contiguous parcel of land described by |
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Subsection (a)(2) would sell if both parcels were sold as a single |
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combined parcel of land; and |
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(2) attribute a portion of the amount determined under |
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Subdivision (1) to the parcel of land being appraised based on the |
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proportion that the size of the parcel of land being appraised bears |
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to the size of the single combined parcel of land described by |
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Subdivision (1). |
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(c) If the chief appraiser uses the market data comparison |
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method of appraisal to appraise the parcel of land, the chief |
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appraiser may not use comparable sales data pertaining to the sale |
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of land located in the corporate limits of a municipality. |
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SECTION 2. Section 23.42, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (a-1) to read as follows: |
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(a) Except as provided by Subsection (a-1), an [An] |
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individual is entitled to have land he owns designated for |
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agricultural use if, on January 1: |
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(1) the land has been devoted exclusively to or |
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developed continuously for agriculture for the three years |
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preceding the current year; |
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(2) the individual [he] is using and intends to use the |
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land for agriculture as an occupation or a business venture for |
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profit during the current year; and |
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(3) agriculture is the individual's [his] primary |
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occupation and primary source of income. |
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(a-1) On or after January 1, 2008, an individual is not |
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entitled to have land designated for agricultural use if the land |
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secures a home equity loan described by Section 50(a)(6), Article |
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XVI, Texas Constitution. |
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SECTION 3. Section 23.51(2), Tax Code, is amended to read as |
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follows: |
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(2) "Agricultural use" includes but is not limited to |
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the following activities: cultivating the soil, producing crops for |
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human food, animal feed, or planting seed or for the production of |
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fibers; floriculture, viticulture, and horticulture; raising or |
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keeping livestock; raising or keeping exotic animals for the |
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production of human food or of fiber, leather, pelts, or other |
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tangible products having a commercial value; [and] planting cover |
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crops or leaving land idle for the purpose of participating in a |
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[any] governmental program, provided the land is not used for |
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residential purposes or a purpose inconsistent with agricultural |
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use; and planting cover crops or leaving land idle in conjunction |
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with [or] normal crop or livestock rotation procedure. The term |
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also includes the use of land to produce or harvest logs and posts |
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for the use in constructing or repairing fences, pens, barns, or |
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other agricultural improvements on adjacent qualified open-space |
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land having the same owner and devoted to a different agricultural |
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use. The term also includes the use of land for wildlife management. |
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SECTION 4. Section 25.19, Tax Code, is amended by adding |
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Subsection (b-2) and amending Subsection (d) to read as follows: |
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(b-2) This subsection applies only to a notice of appraised |
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value for residential real property that has not qualified for a |
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residence homestead exemption in the current tax year. If the |
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records of the appraisal district indicate that the address of the |
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property is also the address of the owner of the property, in |
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addition to containing the applicable information required by |
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Subsections (b), (b-1), and (f), the notice must contain the |
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following statement in boldfaced 12-point type: "According to the |
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records of the appraisal district, the residential real property |
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described in this notice of appraised value is not currently being |
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allowed a residence homestead exemption from ad valorem taxation. |
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If the property is your home and you occupy it as your principal |
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place of residence, the property may qualify for one or more |
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residence homestead exemptions, which will reduce the amount of |
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taxes imposed on the property. The form needed to apply for a |
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residence homestead exemption is enclosed. Although the form may |
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state that the deadline for filing an application for a residence |
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homestead exemption is April 30, a late application for a residence |
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homestead exemption will be accepted if filed before February 1, |
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(insert year application must be filed). There is no fee or charge |
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for filing an application or a late application for a residence |
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homestead exemption." The notice must be accompanied by an |
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application form for a residence homestead exemption. |
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(d) Failure to receive a [the] notice required by this |
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section does not affect the validity of the appraisal of the |
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property, the imposition of any tax on the basis of the appraisal, |
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the existence of any tax lien, the deadline for filing an |
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application for a residence homestead exemption, or any proceeding |
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instituted to collect the tax. |
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SECTION 5. (a) Section 26.06(b), Tax Code, as amended by |
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Chapter 807, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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(b) The notice of a public hearing may not be smaller than |
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one-quarter page of a standard-size or a tabloid-size newspaper, |
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and the headline on the notice must be in 24-point or larger type. |
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The notice must[:
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[(1)] contain a statement in the following form: |
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"NOTICE OF PUBLIC HEARING ON TAX INCREASE |
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"The (name of the taxing unit) will hold two [a] public |
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hearings [hearing] on a proposal to increase total tax revenues |
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from properties on the tax roll in the preceding tax year by |
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(percentage by which proposed tax rate exceeds lower of rollback |
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tax rate or effective tax rate calculated under this chapter) |
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percent. Your individual taxes may increase at a greater or lesser |
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rate, or even decrease, depending on the change in the taxable value |
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of your property in relation to the change in taxable value of all |
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other property and the tax rate that is adopted. |
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"The first public hearing will be held on (date and time) at |
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(meeting place). |
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"The second public hearing will be held on (date and time) at |
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(meeting place). |
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"(Names of all members of the governing body, showing how |
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each voted on the proposal to consider the tax increase or, if one |
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or more were absent, indicating the absences.) |
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"The average taxable value of a residence homestead in (name |
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of taxing unit) last year was $ (average taxable value of a last year was $ (average taxable value of a |
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residence homestead in the taxing unit for the preceding tax year, |
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disregarding residence homestead exemptions available only to |
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disabled persons or persons 65 years of age or older). Based on . Based on |
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last year's tax rate of $ (preceding year's adopted tax rate) per |
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$100 of taxable value, the amount of taxes imposed last year on the , the amount of taxes imposed last year on the |
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average home was $ (tax on average taxable value of a residence |
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homestead in the taxing unit for the preceding tax year, |
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disregarding residence homestead exemptions available only to |
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disabled persons or persons 65 years of age or older).. |
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"The average taxable value of a residence homestead in (name |
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of taxing unit) this year is $ (average taxable value of a this year is $ (average taxable value of a |
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residence homestead in the taxing unit for the current tax year, |
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disregarding residence homestead exemptions available only to |
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disabled persons or persons 65 years of age or older). If the . If the |
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governing body adopts the effective tax rate for this year of |
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$(effective tax rate) per $100 of taxable value, the amount of |
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taxes imposed this year on the average home would be $ (tax on |
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average taxable value of a residence homestead in the taxing unit |
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for the current tax year, disregarding residence homestead |
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exemptions available only to disabled persons or persons 65 years |
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of age or older).. |
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"If the governing body adopts the proposed tax rate of |
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$(proposed tax rate) per $100 of taxable value, the amount of |
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taxes imposed this year on the average home would be $ (tax on |
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the average taxable value of a residence in the taxing unit for the |
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current year disregarding residence homestead exemptions available |
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only to disabled persons or persons 65 years of age or older).. |
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"Members of the public are encouraged to attend the hearings |
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and express their views."[; and
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[(2) contain the following information:
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[(A)
a section entitled "Comparison of Proposed
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Budget with Last Year's Budget," which must show the difference,
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expressed as a percent increase or decrease, as applicable, in the
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amount budgeted in the preceding fiscal year and the amount
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budgeted for the fiscal year that begins in the current tax year for
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each of the following:
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[(i) maintenance and operations;
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[(ii) debt service; and
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[(iii) total expenditures;
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[(B)
a section entitled "Total Appraised Value
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and Total Taxable Value," which must show the total appraised value
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and the total taxable value of all property and the total appraised
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value and the total taxable value of new property taxable by the
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unit in the preceding tax year and the current tax year as
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calculated under Section 26.04;
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[(C)
the total amount of the outstanding and
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unpaid bonded indebtedness of the taxing unit;
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[(D)
the unit's adopted tax rate for the
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preceding tax year and the proposed tax rate, expressed as an amount
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per $100;
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[(E)
the difference, expressed as an amount per
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$100 and as a percent increase or decrease, as applicable, in the
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proposed tax rate compared to the adopted tax rate for the preceding
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tax year;
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[(F)
the average appraised value of a residence
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homestead in the taxing unit in the preceding tax year and in the
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current tax year; the unit's homestead exemption, other than an
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exemption available only to disabled persons or persons 65 years of
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age or older, applicable to that appraised value in each of those
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years; and the average taxable value of a residence homestead in the
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unit in each of those years, disregarding any homestead exemption
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available only to disabled persons or persons 65 years of age or
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older;
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[(G)
the amount of tax that would have been
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imposed by the unit in the preceding tax year on a residence
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homestead appraised at the average appraised value of a residence
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homestead in that year, disregarding any homestead exemption
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available only to disabled persons or persons 65 years of age or
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older;
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[(H)
the amount of tax that would be imposed by
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the unit in the current tax year on a residence homestead appraised
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at the average appraised value of a residence homestead in the
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current tax year, disregarding any homestead exemption available
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only to disabled persons or persons 65 years of age or older, if the
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proposed tax rate is adopted; and
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[(I)
the difference between the amounts of tax
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calculated under Paragraphs (G) and (H), expressed in dollars and
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cents and described as the annual increase or decrease, as
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applicable, in the tax to be imposed by the unit on the average
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residence homestead in the unit in the current tax year if the
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proposed tax rate is adopted.] |
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(b) Section 26.06(d), Tax Code, is amended to read as |
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follows: |
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(d) At the public hearings the governing body shall announce |
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the date, time, and place of the meeting at which it will vote on the |
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proposed tax rate. After each hearing the governing body shall give |
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notice of the meeting at which it will vote on the proposed tax rate |
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and the notice shall be in the same form as prescribed by |
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Subsections (b) and (c), except that it must state the following: |
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"NOTICE OF [VOTE ON] TAX REVENUE INCREASE [RATE] |
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"The (name of the taxing unit) conducted public hearings on |
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(date of first hearing) and (date of second hearing) on a proposal |
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to increase the total tax revenues of the (name of the taxing unit) |
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from properties on the tax roll in the preceding year by (percentage |
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by which proposed tax rate exceeds lower of rollback tax rate or |
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effective tax rate calculated under this chapter) percent [on
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(dates and times public hearings were conducted)]. |
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"The total tax revenue proposed to be raised last year at last |
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year's tax rate of (insert tax rate for the preceding year) for each |
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$100 of taxable value was (insert total amount of taxes imposed in |
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the preceding year). |
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"The total tax revenue proposed to be raised this year at the |
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proposed tax rate of (insert proposed tax rate) for each $100 of |
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taxable value, excluding tax revenue to be raised from new property |
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added to the tax roll this year, is (insert amount computed by |
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multiplying proposed tax rate by the difference between current |
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total value and new property value). |
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"The total tax revenue proposed to be raised this year at the |
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proposed tax rate of (insert proposed tax rate) for each $100 of |
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taxable value, including tax revenue to be raised from new property |
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added to the tax roll this year, is (insert amount computed by |
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multiplying proposed tax rate by current total value). |
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"The (governing body of the taxing unit) is scheduled to vote |
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on the tax rate that will result in that tax increase at a public |
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meeting to be held on (date of meeting) at (location of meeting, |
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including mailing address) at (time of meeting [and time) at
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(meeting place])." |
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(c) Section 26.06(b), Tax Code, as amended by Chapter 1368, |
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Acts of the 79th Legislature, Regular Session, 2005, is repealed. |
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SECTION 6. This Act applies only to the appraisal of a |
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parcel of land for ad valorem tax purposes for a tax year that |
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begins on or after the effective date of this Act. |
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SECTION 7. This Act takes effect January 1, 2008. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3630 was passed by the House on May 2, |
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2007, by the following vote: Yeas 146, Nays 1, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 3630 on May 25, 2007, by the following vote: Yeas 139, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3630 was passed by the Senate, with |
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amendments, on May 23, 2007, by the following vote: Yeas 30, Nays |
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1. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |