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A BILL TO BE ENTITLED
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AN ACT
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relating to changing the term "effective" tax rate to the term "no |
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new taxes" tax rate for the purposes of the calculation and adoption |
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of ad valorem tax rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sec. 26.012, TAX CODE, is amended by amending |
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paragraph (9) to read as follows: |
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(9) "No new taxes [Effective] maintenance and |
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operations rate" means a rate expressed in dollars per $100 of |
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taxable value and calculated according to the following formula: |
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NO NEW TAXES [EFFECTIVE] MAINTENANCE AND OPERATIONS RATE = |
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LAST YEAR'S - LAST YEAR'S - LAST YEAR'S JUNIOR |
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LEVY DEBT LEVY COLLEGE LEVY |
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(CURRENT TOTAL VALUE - NEW PROPERTY VALUE) |
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SECTION 2. Section 26.04, Tax Code, is amended to read as |
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follows: |
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Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY; NO NEW |
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TAXES TAX RATE [EFFECTIVE] AND ROLLBACK TAX RATES. (a) On receipt |
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of the appraisal roll, the assessor for a taxing unit shall |
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determine the total appraised value, the total assessed value, and |
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the total taxable value of property taxable by the unit. He shall |
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also determine, using information provided by the appraisal office, |
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the appraised, assessed, and taxable value of new property. |
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(b) The assessor shall submit the appraisal roll for the |
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unit showing the total appraised, assessed, and taxable values of |
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all property and the total taxable value of new property to the |
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governing body of the unit by August 1 or as soon thereafter as |
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practicable. By August 1 or as soon thereafter as practicable, the |
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taxing unit's collector shall certify an estimate of the collection |
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rate for the current year to the governing body. If the collector |
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certified an anticipated collection rate in the preceding year and |
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the actual collection rate in that year exceeded the anticipated |
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rate, the collector shall also certify the amount of debt taxes |
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collected in excess of the anticipated amount in the preceding |
|
year. |
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(c) An officer or employee designated by the governing body |
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shall calculate the no new taxes [effective] tax rate and the |
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rollback tax rate for the unit, where: |
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(1) " No new taxes [Effective] tax rate" means a rate |
|
expressed in dollars per $100 of taxable value calculated according |
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to the following formula: |
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NO NEW TAXES [EFFECTIVE] TAX RATE = (LAST YEAR'S LEVY - LOST |
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PROPERTY LEVY) |
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(CURRENT TOTAL VALUE - NEW PROPERTY VALUE) |
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; and |
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(2) "Rollback tax rate" means a rate expressed in |
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dollars per $100 of taxable value calculated according to the |
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following formula: |
|
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ROLLBACK TAX RATE = (NO NEW TAXES [EFFECTIVE] MAINTENANCE AND |
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OPERATIONS RATE |
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x 1.08) + CURRENT DEBT RATE |
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(d) The no new taxes [effective] tax rate for a county is the |
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sum of the no new taxes [effective] tax rates calculated for each |
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type of tax the county levies and the rollback tax rate for a county |
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is the sum of the rollback tax rates calculated for each type of tax |
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the county levies. |
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(e) By August 7 or as soon thereafter as practicable, the |
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designated officer or employee shall submit the rates to the |
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governing body. He shall deliver by mail to each property owner in |
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the unit or publish in a newspaper in the form prescribed by the |
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comptroller: |
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(1) the no new taxes [effective] tax rate, the |
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rollback tax rate, and an explanation of how they were calculated; |
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(2) the estimated amount of interest and sinking fund |
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balances and the estimated amount of maintenance and operation or |
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general fund balances remaining at the end of the current fiscal |
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year that are not encumbered with or by corresponding existing debt |
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obligation; |
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(3) a schedule of the unit's debt obligations showing: |
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(A) the amount of principal and interest that |
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will be paid to service the unit's debts in the next year from |
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property tax revenue, including payments of lawfully incurred |
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contractual obligations providing security for the payment of the |
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principal of and interest on bonds and other evidences of |
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indebtedness issued on behalf of the unit by another political |
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subdivision and, if the unit is created under Section 52, Article |
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III, or Section 59, Article XVI, Texas Constitution, payments on |
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debts that the unit anticipates to incur in the next calendar year; |
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(B) the amount by which taxes imposed for debt |
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are to be increased because of the unit's anticipated collection |
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rate; and |
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(C) the total of the amounts listed in Paragraphs |
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(A)-(B), less any amount collected in excess of the previous year's |
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anticipated collections certified as provided in Subsection (b); |
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(4) the amount of additional sales and use tax revenue |
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anticipated in calculations under Section 26.041; |
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(5) a statement that the adoption of a tax rate equal |
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to the no new taxes [effective] tax rate would result in an increase |
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or decrease, as applicable, in the amount of taxes imposed by the |
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unit as compared to last year's levy, and the amount of the increase |
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or decrease; |
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(6) in the year that a taxing unit calculates an |
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adjustment under Subsection (i) or (j), a schedule that includes |
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the following elements: |
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(A) the name of the unit discontinuing the |
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department, function, or activity; |
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(B) the amount of property tax revenue spent by |
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the unit listed under Paragraph (A) to operate the discontinued |
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department, function, or activity in the 12 months preceding the |
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month in which the calculations required by this chapter are made; |
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and |
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(C) the name of the unit that operates a distinct |
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department, function, or activity in all or a majority of the |
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territory of a taxing unit that has discontinued operating the |
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distinct department, function, or activity; and |
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(7) in the year following the year in which a taxing |
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unit raised its rollback tax rate as required by Subsection (j), a |
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schedule that includes the following elements: |
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(A) the amount of property tax revenue spent by |
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the unit to operate the department, function, or activity for which |
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the taxing unit raised the rollback tax rate as required by |
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Subsection (j) for the 12 months preceding the month in which the |
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calculations required by this chapter are made; and |
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(B) the amount published by the unit in the |
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preceding tax year under Subdivision (6)(B). |
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(e-1) The notice requirements imposed by Subsections |
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(e)(1)-(6) do not apply to a school district. |
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(f) If as a result of consolidation of taxing units a taxing |
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unit includes territory that was in two or more taxing units in the |
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preceding year, the amount of taxes imposed in each in the preceding |
|
year is combined for purposes of calculating the no new taxes tax |
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rate [effective] and rollback tax rate under this section. |
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(g) A person who owns taxable property is entitled to an |
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injunction prohibiting the taxing unit in which the property is |
|
taxable from adopting a tax rate if the assessor or designated |
|
officer or employee of the unit, as applicable, has not complied |
|
with the computation or publication requirements of this section |
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and the failure to comply was not in good faith. |
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(h) For purposes of this section, the anticipated |
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collection rate of a taxing unit is the percentage relationship |
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that the total amount of estimated tax collections for the current |
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year bears to the total amount of taxes imposed for the current |
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year. The total amount of estimated tax collections for the current |
|
year is the sum of the collector's estimate of: |
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(1) the total amount of property taxes imposed in the |
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current year that will be collected before July 1 of the following |
|
year, including any penalties and interest on those taxes that will |
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be collected during that period; and |
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(2) the total amount of delinquent property taxes |
|
imposed in previous years that will be collected on or after July 1 |
|
of the current year and before July 1 of the following year, |
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including any penalties and interest on those taxes that will be |
|
collected during that period. |
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(i) This subsection applies to a taxing unit that has agreed |
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by written contract to transfer a distinct department, function, or |
|
activity to another taxing unit and discontinues operating that |
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distinct department, function, or activity if the operation of that |
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department, function, or activity in all or a majority of the |
|
territory of the taxing unit is continued by another existing |
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taxing unit or by a new taxing unit. The rollback tax rate of a |
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taxing unit to which this subsection applies in the first tax year |
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in which a budget is adopted that does not allocate revenue to the |
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discontinued department, function, or activity is calculated as |
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otherwise provided by this section, except that last year's levy |
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used to calculate the no new taxes [effective] maintenance and |
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operations rate of the unit is reduced by the amount of maintenance |
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and operations tax revenue spent by the taxing unit to operate the |
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department, function, or activity for the 12 months preceding the |
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month in which the calculations required by this chapter are made |
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and in which the unit operated the discontinued department, |
|
function, or activity. If the unit did not operate that department, |
|
function, or activity for the full 12 months preceding the month in |
|
which the calculations required by this chapter are made, the unit |
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shall reduce last year's levy used for calculating the no new taxes |
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[effective] maintenance and operations rate of the unit by the |
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amount of the revenue spent in the last full fiscal year in which |
|
the unit operated the discontinued department, function, or |
|
activity. |
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(j) This subsection applies to a taxing unit that had agreed |
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by written contract to accept the transfer of a distinct |
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department, function, or activity from another taxing unit and |
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operates a distinct department, function, or activity if the |
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operation of a substantially similar department, function, or |
|
activity in all or a majority of the territory of the taxing unit |
|
has been discontinued by another taxing unit, including a dissolved |
|
taxing unit. The rollback tax rate of a taxing unit to which this |
|
subsection applies in the first tax year after the other taxing unit |
|
discontinued the substantially similar department, function, or |
|
activity in which a budget is adopted that allocates revenue to the |
|
department, function, or activity is calculated as otherwise |
|
provided by this section, except that last year's levy used to |
|
calculate the no new taxes [effective] maintenance and operations |
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rate of the unit is increased by the amount of maintenance and |
|
operations tax revenue spent by the taxing unit that discontinued |
|
operating the substantially similar department, function, or |
|
activity to operate that department, function, or activity for the |
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12 months preceding the month in which the calculations required by |
|
this chapter are made and in which the unit operated the |
|
discontinued department, function, or activity. If the unit did |
|
not operate the discontinued department, function, or activity for |
|
the full 12 months preceding the month in which the calculations |
|
required by this chapter are made, the unit may increase last year's |
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levy used to calculate the no new taxes [effective] maintenance and |
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operations rate by an amount not to exceed the amount of property |
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tax revenue spent by the discontinuing unit to operate the |
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discontinued department, function, or activity in the last full |
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fiscal year in which the discontinuing unit operated the |
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department, function, or activity. |
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(k) to (q) Expired. |
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SECTION 3. Section 26.041, Tax Code, is amended to read as |
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follows: |
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Sec. 26.041. TAX RATE OF UNIT IMPOSING ADDITIONAL SALES AND |
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USE TAX. (a) In the first year in which an additional sales and |
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use tax is required to be collected, the no new taxes [effective] |
|
tax rate and rollback tax rate for the unit are calculated according |
|
to the following formulas: |
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NO NEW TAXES [EFFECTIVE] TAX RATE = (LAST YEAR'S LEVY - LOST |
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PROPERTY LEVY- |
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(CURRENT TOTAL VALUE - NEW PROPERTY VALUE) |
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SALES TAX GAIN RATE |
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and |
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ROLLBACK RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x |
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1.08) + CURRENT DEBT RATE - SALES TAX GAIN |
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RATE |
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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. |
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(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: |
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ROLLBACK RATE = |
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(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) + |
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(TOTAL CURRENT VALUE - NEW PROPERTY VALUE) |
|
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(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 no new taxes [effective] tax rate and rollback tax |
|
rate for the unit are calculated according to the following |
|
formulas: |
|
NO NEW TAXES [EFFECTIVE] TAX RATE = |
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(LAST YEAR'S LEVY - LOST PROPERTY LEVY) + |
|
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE) |
|
|
SALES TAX LOSS RATE |
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and |
|
ROLLBACK TAX RATE = |
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(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) + |
|
(TOTAL CURRENT VALUE - NEW PROPERTY VALUE) |
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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. |
|
(d) In order to determine the amount of additional sales and |
|
use tax revenue for purposes of this section, the designated |
|
officer or employee shall use the sales and use tax revenue for the |
|
last preceding four quarters for which the information is available |
|
as the basis for projecting the additional sales and use tax revenue |
|
for the current tax year. If the rate of the additional sales and |
|
use tax is increased or reduced, the projection to be used for the |
|
first tax year after the effective date of the sales and use tax |
|
change shall be adjusted to exclude any revenue gained or lost |
|
because of the sales and use tax rate change. If the unit did not |
|
impose an additional sales and use tax for the last preceding four |
|
quarters, the designated officer or employee shall request the |
|
comptroller of public accounts to provide to the officer or |
|
employee a report showing the estimated amount of taxable sales and |
|
uses within the unit for the previous four quarters as compiled by |
|
the comptroller, and the comptroller shall comply with the request. |
|
The officer or employee shall prepare the estimate of the |
|
additional sales and use tax revenue for the first year of the |
|
imposition of the tax by multiplying the amount reported by the |
|
comptroller by the appropriate additional sales and use tax rate |
|
and by multiplying that product by .95. |
|
(e) If a city that imposes an additional sales and use tax |
|
receives payments under the terms of a contract executed before |
|
January 1, 1986, in which the city agrees not to annex certain |
|
property or a certain area and the owners or lessees of the property |
|
or of property in the area agree to pay at least annually to the city |
|
an amount determined by reference to all or a percentage of the |
|
property tax rate of the city and all or a part of the value of the |
|
property subject to the agreement or included in the area subject to |
|
the agreement, the governing body, by order adopted by a majority |
|
vote of the governing body, may direct the designated officer or |
|
employee to add to the no new taxes [effective] and rollback tax |
|
rate the amount that, when applied to the total taxable value |
|
submitted to the governing body, would produce an amount of taxes |
|
equal to the difference between the total amount of payments for the |
|
tax year under contracts described by this subsection under the |
|
rollback tax rate calculated under this section and the total |
|
amount of payments for the tax year that would have been obligated |
|
to the city if the city had not adopted an additional sales and use |
|
tax. |
|
(f) An estimate made by the comptroller under Subsection (d) |
|
of this section need not be adjusted to take into account any |
|
projection of additional revenue attributable to increases in the |
|
total value of items taxable under the state sales and use tax |
|
because of amendments of Chapter 151, Tax Code. |
|
(g) If the rate of the additional sales and use tax is |
|
increased, the designated officer or employee shall make two |
|
projections, in the manner provided by Subsection (d) of this |
|
section, of the revenue generated by the additional sales and use |
|
tax in the following year. The first projection must take into |
|
account the increase and the second projection must not take into |
|
account the increase. The officer or employee shall then subtract |
|
the amount of the result of the second projection from the amount of |
|
the result of the first projection to determine the revenue |
|
generated as a result of the increase in the additional sales and |
|
use tax. In the first year in which an additional sales and use tax |
|
is increased, the no new taxes [effective] tax rate for the unit is |
|
the no new taxes [effective] tax rate before the increase minus a |
|
number the numerator of which is the revenue generated as a result |
|
of the increase in the additional sales and use tax, as determined |
|
under this subsection, and the denominator of which is the current |
|
total value minus the new property value. |
|
(h) If the rate of the additional sales and use tax is |
|
decreased, the designated officer or employee shall make two |
|
projections, in the manner provided by Subsection (d) of this |
|
section, of the revenue generated by the additional sales and use |
|
tax in the following year. The first projection must take into |
|
account the decrease and the second projection must not take into |
|
account the decrease. The officer or employee shall then subtract |
|
the amount of the result of the first projection from the amount of |
|
the result of the second projection to determine the revenue lost as |
|
a result of the decrease in the additional sales and use tax. In the |
|
first year in which an additional sales and use tax is decreased, |
|
the no new taxes [effective] tax rate for the unit is the no new |
|
taxes [effective] tax rate before the decrease plus a number the |
|
numerator of which is the revenue lost as a result of the decrease |
|
in the additional sales and use tax, as determined under this |
|
subsection, and the denominator of which is the current total value |
|
minus the new property value. |
|
(i) Any amount derived from the sales and use tax that is or |
|
will be distributed by a county to the recipient of an economic |
|
development grant made under Chapter 381, Local Government Code, is |
|
not considered to be sales and use tax revenue for purposes of this |
|
section. |
|
(j) Any amount derived from the sales and use tax that is |
|
retained by the comptroller under Section 4 or 5, Chapter 1507, Acts |
|
of the 76th Legislature, Regular Session, 1999 (Article 5190.14, |
|
Vernon's Texas Civil Statutes), is not considered to be sales and |
|
use tax revenue for purposes of this section. |
|
|
SECTION 4. Section 26.043, Tax Code, is amended to read as |
|
follows: |
|
Sec. 26.043. NO NEW TAXES [EFFECTIVE] TAX RATE IN CITY |
|
IMPOSING MASS TRANSIT SALES AND USE TAX. (a) In the tax year in |
|
which a city has set an election on the question of whether to |
|
impose a local sales and use tax under Subchapter H, Chapter 453, |
|
Transportation Code, the officer or employee designated to make the |
|
calculations provided by Section 26.04 may not make those |
|
calculations until the outcome of the election is determined. If |
|
the election is determined in favor of the imposition of the tax, |
|
the representative shall subtract from the city's rollback and no |
|
new taxes [effective] tax rates the amount that, if applied to the |
|
city's current total value, would impose an amount equal to the |
|
amount of property taxes budgeted in the current tax year to pay for |
|
expenses related to mass transit services. |
|
(b) In a tax year to which this section applies, a reference |
|
in this chapter to the city's no new taxes tax rate [effective] or |
|
rollback tax rate refers to that rate as adjusted under this |
|
section. |
|
(c) For the purposes of this section, "mass transit |
|
services" does not include the construction, reconstruction, or |
|
general maintenance of municipal streets. |
|
SECTION 5. Section 26.044, Tax Code, is amended to read as |
|
follows: |
|
Sec. 26.044. NO NEW TAXES [EFFECTIVE] TAX RATE TO PAY FOR |
|
STATE CRIMINAL JUSTICE MANDATE. (a) The first time that a county |
|
adopts a tax rate after September 1, 1991, in which the state |
|
criminal justice mandate applies to the county, the no new taxes |
|
[effective] maintenance and operation rate for the county is |
|
increased by the rate calculated according to the following |
|
formula: |
|
(State Criminal Justice Mandate) |
|
(Current Total Value - New Property Value) |
|
(b) In the second and subsequent years that a county adopts |
|
a tax rate, if the amount spent by the county for the state criminal |
|
justice mandate increased over the previous year, the no new taxes |
|
[effective] maintenance and operation rate for the county is |
|
increased by the rate calculated according to the following |
|
formula: |
|
(This Year's State Criminal Justice Mandate - Previous Year's State |
|
Criminal Justice Mandate) |
|
(Current Total Value - New Property Value) |
|
(c) The county shall include a notice of the increase in the |
|
no new taxes [effective] maintenance and operation rate provided by |
|
this section, including a description and amount of the state |
|
criminal justice mandate, in the information published under |
|
Section 26.04(e) and Section 26.06(b) of this code. |
|
(d) In this section, "state criminal justice mandate" means |
|
the amount spent by the county in the previous 12 months providing |
|
for the maintenance and operation cost of keeping inmates in |
|
county-paid facilities after they have been sentenced to the |
|
institutional division of the Texas Department of Criminal Justice |
|
as certified by the county auditor based on information provided by |
|
the county sheriff, minus the amount received from state revenue |
|
for reimbursement of such costs. |
|
Section 6. Section 26.0441, Tax Code, is amended to read as |
|
follows: |
|
Sec. 26.0441. TAX RATE ADJUSTMENT FOR INDIGENT HEALTH CARE. |
|
(a) In the first tax year in which a taxing unit adopts a tax rate |
|
after January 1, 2000, and in which the enhanced minimum |
|
eligibility standards for indigent health care established under |
|
Section 61.006, Health and Safety Code, apply to the taxing unit, |
|
the no new taxes [effective] maintenance and operations rate for |
|
the taxing unit is increased by the rate computed according to the |
|
following formula: |
|
Enhanced Indigent Health Care Expenditures |
|
Amount of Increase = __________________________________________ |
|
(Current Total Value - New Property Value) |
|
(b) In each subsequent tax year, if the taxing unit's |
|
enhanced indigent health care expenses exceed the amount of those |
|
expenses for the preceding year, the no new taxes [effective] |
|
maintenance and operations rate for the taxing unit is increased by |
|
the rate computed according to the following formula: |
|
(Current Tax Year's Enhanced Indigent Health |
|
Care Expenditures - Preceding Tax Year's |
|
Indigent Health Care Expenditures) |
|
Amount of Increase = __________________________________________ |
|
(Current Total Value - New Property Value) |
|
(c) The taxing unit shall include a notice of the increase |
|
in its no new taxes [effective] maintenance and operations rate |
|
provided by this section, including a brief description and the |
|
amount of the enhanced indigent health care expenditures, in the |
|
information published under Section 26.04(e) and, if applicable, |
|
Section 26.06(b). |
|
(d) In this section, "enhanced indigent health care |
|
expenditures" for a tax year means the amount spent by the taxing |
|
unit for the maintenance and operation costs of providing indigent |
|
health care at the increased minimum eligibility standards |
|
established under Section 61.006, Health and Safety Code, effective |
|
on or after January 1, 2000, in the period beginning on July 1 of the |
|
year preceding the tax year for which the tax is adopted and ending |
|
on June 30 of the tax year for which the tax is adopted, less the |
|
amount of state assistance received by the taxing unit in |
|
accordance with Chapter 61, Health and Safety Code, that is |
|
attributable to those costs. |
|
SECTION 7. Section 26.05, Tax Code, is amended by amending |
|
subsections (b), (c), and (d) to read as follows: |
|
(b) A taxing unit may not impose property taxes in any year |
|
until the governing body has adopted a tax rate for that year, and |
|
the annual tax rate must be set by ordinance, resolution, or order, |
|
depending on the method prescribed by law for adoption of a law by |
|
the governing body. The vote on the ordinance, resolution, or |
|
order setting the tax rate must be separate from the vote adopting |
|
the budget. The vote on the ordinance, resolution, or order |
|
setting a tax rate that exceeds the no new taxes [effective] tax |
|
rate must be a record vote. A motion to adopt an ordinance, |
|
resolution, or order setting a tax rate that exceeds the no new |
|
taxes [effective] tax rate must be made in the following form: "I |
|
move that property taxes be increased by the adoption of a tax rate |
|
of (specify tax rate)." If the ordinance, resolution, or order sets |
|
a tax rate that, if applied to the total taxable value, will impose |
|
an amount of taxes to fund maintenance and operation expenditures |
|
of the taxing unit that exceeds the amount of taxes imposed for that |
|
purpose in the preceding year, the taxing unit must: |
|
(1) include in the ordinance, resolution, or order in |
|
type larger than the type used in any other portion of the document: |
|
(A) the following statement: "THIS TAX RATE |
|
WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST |
|
YEAR'S TAX RATE."; and |
|
(B) if the tax rate exceeds the effective |
|
maintenance and operations rate, the following statement: "THE |
|
TAX RATE WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A |
|
$100,000 HOME BY APPROXIMATELY $(Insert amount)."; and |
|
(2) include on the home page of any Internet website |
|
operated by the unit: |
|
(A) the following statement: "(Insert name of |
|
unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE |
|
AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and |
|
(B) if the tax rate exceeds the effective |
|
maintenance and operations rate, the following statement: "THE |
|
TAX RATE WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A |
|
$100,000 HOME BY APPROXIMATELY $(Insert amount)." |
|
(c) If the governing body of a taxing unit does not adopt a |
|
tax rate before the date required by Subsection (a), the tax rate |
|
for the taxing unit for that tax year is the lower of the no new |
|
taxes [effective] tax rate calculated for that tax year or the tax |
|
rate adopted by the taxing unit for the preceding tax year. A tax |
|
rate established by this subsection is treated as an adopted tax |
|
rate. Before the fifth day after the establishment of a tax rate by |
|
this subsection, the governing body of the taxing unit must ratify |
|
the applicable tax rate in the manner required by Subsection (b). |
|
(d) The governing body of a taxing unit other than a school |
|
district may not adopt a tax rate that exceeds the lower of the |
|
rollback tax rate or the no new taxes [effective] tax rate |
|
calculated as provided by this chapter until the governing body has |
|
held two public hearings on the proposed tax rate and has otherwise |
|
complied with Section 26.06 and Section 26.065. The governing body |
|
of a taxing unit shall reduce a tax rate set by law or by vote of the |
|
electorate to the lower of the rollback tax rate or the no new taxes |
|
[effective] tax rate and may not adopt a higher rate unless it first |
|
complies with Section 26.06. |
|
SECTION 8. Section 26.052, Tax Code, is amended by amending |
|
subsection (e) to read as follows: |
|
(e) Public notice provided under Subsection (c) must |
|
specify: |
|
(1) the tax rate that the governing body proposes to |
|
adopt; |
|
(2) the date, time, and location of the meeting of the |
|
governing body of the taxing unit at which the governing body will |
|
consider adopting the proposed tax rate; and |
|
(3) if the proposed tax rate for the taxing unit |
|
exceeds the unit's no new taxes [effective] tax rate calculated as |
|
provided by Section 26.04, a statement substantially identical to |
|
the following: "The proposed tax rate would increase total taxes in |
|
(name of taxing unit) by (percentage by which the proposed tax rate |
|
exceeds the no new taxes [effective] tax rate)." |
|
SECTION 9. Section 26.06, Tax Code, is amended by amending |
|
subsections (b) and (e) and by reenacting and amending subsection |
|
(d), as amended by Acts 2007, 80th Leg., R.S., Ch. 807, Sec. 1, and |
|
by Acts 2007, 80th Leg., R.S., Ch. to read as follows: |
|
Sec. 26.06. NOTICE, HEARING, AND VOTE ON TAX INCREASE. |
|
(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 24-point or larger |
|
type. The notice must contain a statement in the following form: |
|
"NOTICE OF PUBLIC HEARING ON TAX INCREASE |
|
"The (name of the taxing unit) will hold two public hearings |
|
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 no new taxes |
|
[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 first public hearing will be held on (date and time) at |
|
(meeting place). |
|
"The second 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.) |
|
"The average taxable value of a residence homestead in (name |
|
of taxing unit) last year was $ (average taxable value of a |
|
residence homestead in the taxing unit for the preceding tax year, |
|
disregarding residence homestead exemptions available only to |
|
disabled persons or persons 65 years of age or older). Based on |
|
last year's tax rate of $ (preceding year's adopted tax rate) per |
|
$100 of taxable value, the amount of taxes imposed last year on the |
|
average home was $ (tax on average taxable value of a residence |
|
homestead in the taxing unit for the preceding tax year, |
|
disregarding residence homestead exemptions available only to |
|
disabled persons or persons 65 years of age or older). |
|
"The average taxable value of a residence homestead in (name |
|
of taxing unit) this year is $ (average taxable value of a |
|
residence homestead in the taxing unit for the current tax year, |
|
disregarding residence homestead exemptions available only to |
|
disabled persons or persons 65 years of age or older). If the |
|
governing body adopts the no new taxes [effective] tax rate for this |
|
year of $ (effective tax rate) per $100 of taxable value, the |
|
amount of taxes imposed this year on the average home would be |
|
$ (tax on average taxable value of a residence homestead in the |
|
taxing unit for the current tax year, disregarding residence |
|
homestead exemptions available only to disabled persons or persons |
|
65 years of age or older). |
|
"If the governing body adopts the proposed increase tax rate |
|
of $ (proposed tax rate) per $100 of taxable value, the amount of |
|
taxes imposed this year on the average home would be $ (tax on |
|
the average taxable value of a residence in the taxing unit for the |
|
current year disregarding residence homestead exemptions available |
|
only to disabled persons or persons 65 years of age or older). |
|
"Members of the public are encouraged to attend the hearings |
|
and express their views." |
|
(d) At the public hearings the governing body shall announce |
|
the date, time, and place of the meeting at which it will vote on the |
|
proposed tax rate. After each hearing the governing body 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 TAX REVENUE INCREASE |
|
"The (name of the taxing unit) conducted public hearings on |
|
(date of first hearing) and (date of second 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 no |
|
new taxes [effective] tax rate calculated under this chapter) |
|
percent. |
|
"The total tax revenue raised last year at last year's tax |
|
rate of (insert tax rate for the preceding year) for each $100 of |
|
taxable value was (insert total amount of taxes imposed in the |
|
preceding year). |
|
"The total tax revenue proposed to be raised this year at the |
|
proposed increase tax rate of (insert proposed tax rate) for each |
|
$100 of taxable value, excluding tax revenue to be raised from new |
|
property added to the tax roll this year, is (insert amount computed |
|
by multiplying (state percentage of increase over no new taxes tax |
|
rate) percent increase tax rate by the difference between current |
|
total value and new property value). |
|
"The total tax revenue proposed to be raised this year at the |
|
(state percentage of increase over no new taxes tax rate) percent |
|
increase tax rate of (insert proposed tax rate) for each $100 of |
|
taxable value, including tax revenue to be raised from new property |
|
added to the tax roll this year, is (insert amount computed by |
|
multiplying proposed tax rate by current total value). |
|
"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 of meeting) at (location of meeting, |
|
including mailing address) at (time of meeting)." |
|
(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 second 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 does not adopt a tax rate that exceeds the lower of the |
|
rollback tax rate or the no new taxes [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 |
|
the no new taxes [effective] tax rate. |
|
SECTION 10. This act takes effect January 1, 2010. |