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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of certain taxes following the |
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annexation of property by certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.04, Tax Code, is amended by adding |
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Subsections (k) and (l) to read as follows: |
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(k) If, as a result of an election for annexation or the |
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mutual agreement by a taxing unit and property owner for |
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annexation, a taxing unit includes territory that is in two or more |
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taxing units that continue to levy a debt service tax rate for a |
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service that is only provided by one taxing unit, the amount of |
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taxes imposed for debt in each taxing unit in the preceding year is |
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adjusted for purposes of calculating the effective and rollback tax |
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rates under this section to ensure that taxation is only for the |
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services provided by the taxing unit. For purposes of this |
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subsection, annexation does not mean consolidation of all services. |
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All taxing units continue to exist and tax the property in the |
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manner agreed on for debt service after the annexation of the |
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territory. A taxing unit not providing the service for which the |
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tax is levied shall refund to the taxpayer an amount equal to the |
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debt paid for the service not provided by the taxing unit. |
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(l) Subsection (k) applies only to the annexation of |
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property by a municipality with a population of more than 2,500 and |
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less than 3,500 that is located in a county with a population of |
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275,000 or more that: |
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(1) is adjacent to a county with a population of 3.3 |
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million or more; and |
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(2) contains part of a national forest. |
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SECTION 2. Section 26.09, Tax Code, is amended by adding |
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Subsections (c-1) and (c-2) to read as follows: |
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(c-1) The assessor for a taxing unit described by Section |
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26.04(k) that annexes territory as a result of an annexation |
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agreement or an election may allocate and set the debt service tax |
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rate of the taxing unit. The allocation must be approved by the |
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governing body of the taxing unit. The allocation must adjust the |
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tax liability of each property in the territory annexed and |
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required to pay a tax to the taxing unit by a refund amount |
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determined by the governing body of the taxing unit. If the |
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assessor is unable to allocate and set the debt service tax rate |
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before the taxing unit's tax statement is mailed, the taxing unit |
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shall refund any refund amounts determined by the governing body of |
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the taxing unit under this subsection. |
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(c-2) Subsection (c-1) applies only to a municipality with a |
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population of more than 2,500 and less than 3,500 that is located in |
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a county with a population of 275,000 or more that: |
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(1) is adjacent to a county with a population of 3.3 |
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million or more; and |
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(2) contains part of a national forest. |
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SECTION 3. This Act applies only to an ad valorem tax year |
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that begins on or after January 1, 2008. |
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SECTION 4. This Act takes effect January 1, 2008. |