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A BILL TO BE ENTITLED
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AN ACT
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relating to the adoption of an ad valorem tax rate by a taxing unit |
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other than a school district. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.05, Tax Code, is amended by adding |
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Subsection (b-1) and amending Subsection (c) to read as follows: |
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(b-1) Notwithstanding the other provisions of this section, |
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the tax rate of a taxing unit other than a school district for the |
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current tax year is the unit's effective tax rate and that tax rate |
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is treated as the unit's adopted tax rate unless the governing body |
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of the unit adopts a tax rate that is higher or lower than the unit's |
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effective tax rate. If the governing body of the taxing unit elects |
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to adopt a tax rate that is higher or lower than the unit's |
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effective tax rate, the governing body must comply with the |
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procedure for adoption of a tax rate specified by Subsection (b), |
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including the procedure specified by that subsection for setting a |
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tax rate that exceeds the unit's effective tax rate, if applicable. |
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The meeting at which the vote is taken on the ordinance, resolution, |
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or order setting the tax rate must be an open meeting as required by |
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Chapter 551, Government Code. If the governing body of the taxing |
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unit elects to adopt a tax rate that exceeds the lower of the unit's |
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rollback tax rate or effective tax rate calculated as provided by |
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this chapter, the governing body must hold two public hearings on |
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the tax rate and otherwise comply with Sections 26.06 and 26.065 as |
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required by Subsection (d) of this section. |
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(c) If the governing body of a school district [taxing unit] |
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does not adopt a tax rate before the date required by Subsection |
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(a), the tax rate for the school district [taxing unit] for that tax |
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year is the lower of the effective tax rate calculated for that tax |
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year or the tax rate adopted by the school district [taxing unit] |
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for the preceding tax year. A tax rate established by this |
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subsection is treated as an adopted tax rate. Before the fifth day |
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after the establishment of a tax rate by this subsection, the |
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governing body of the school district [taxing unit] must ratify the |
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applicable tax rate in the manner required by Subsection (b). |
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SECTION 2. (a) The change in law made by this Act applies to |
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the ad valorem tax rate of a taxing unit beginning with the 2009 tax |
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year, except as provided by Subsection (b) of this section. |
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(b) If the governing body of a taxing unit adopted an ad |
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valorem tax rate for the taxing unit for the 2009 tax year before |
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the effective date of this Act, the change in law made by this Act |
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applies to the ad valorem tax rate of that taxing unit beginning |
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with the 2010 tax year, and the law in effect when the tax rate was |
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adopted applies to the 2009 tax year with respect to that taxing |
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unit. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |