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A BILL TO BE ENTITLED
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AN ACT
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relating to increased transparency regarding appraisals for ad |
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valorem tax purposes and increased tax rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. NOTICE OF APPRAISAL |
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SECTION 1.01. Section 25.19, Tax Code, is amended by adding |
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Subsection (b-3) to read as follows: |
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(b-3) For real property, in addition to the information |
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required by Subsection (b), the chief appraiser shall state in a |
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notice required to be delivered under Subsection (a) the following |
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for the current tax year and each of the preceding five tax years: |
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(1) the appraised value of the property; and |
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(2) the difference, expressed as a percent increase or |
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decrease, as applicable, in the appraised value of the property |
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compared to the appraised value of the property for the preceding |
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tax year. |
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ARTICLE 2. REQUIRED ELECTION TO RATIFY TAX RATE INCREASE |
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SECTION 2.01. Section 26.07, Tax Code, is amended to read as |
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follows: |
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Sec. 26.07. ELECTION TO RATIFY TAX [REPEAL] INCREASE OF |
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TAXING UNIT OTHER THAN SCHOOL DISTRICT. (a) The [If the] |
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governing body of a taxing unit other than a school district may not |
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adopt [adopts] a tax rate that exceeds the rollback tax rate |
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calculated as provided by this chapter without voter approval as |
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provided by this section. To adopt a tax rate that exceeds the |
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rollback tax rate, the governing body must adopt the rate as a |
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proposed tax rate and call an election to permit[,] the qualified |
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voters of the taxing unit [by petition may require that an election
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be held to determine whether or not] to approve or disapprove |
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[reduce] the proposed tax rate [adopted for the current year to the
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rollback tax rate calculated as provided by this chapter]. |
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(b) The [A petition is valid only if:
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[(1)
it states that it is intended to require an
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election in the taxing unit on the question of reducing the tax rate
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for the current year;
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[(2)
it is signed by a number of registered voters of
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the taxing unit equal to at least:
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[(A)
seven percent of the number of registered
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voters of the taxing unit according to the most recent list of
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registered voters if the tax rate adopted for the current tax year
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would impose taxes for maintenance and operations in an amount of at
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least $5 million; or
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[(B)
10 percent of the number of registered
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voters of the taxing unit according to the most recent official list
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of registered voters if the tax rate adopted for the current tax
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year would impose taxes for maintenance and operations in an amount
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of less than $5 million; and
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[(3)
it is submitted to the governing body on or before
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the 90th day after the date on which the governing body adopted the
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tax rate for the current year.
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[(c)
Not later than the 20th day after the day a petition is
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submitted, the governing body shall determine whether or not the
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petition is valid and pass a resolution stating its finding. If the
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governing body fails to act within the time allowed, the petition is
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treated as if it had been found valid.
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[(d) If the] governing body [finds that the petition is
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valid (or fails to act within the time allowed), it] shall order |
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that the [an] election be held in the taxing unit on a date not less |
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than 30 or more than 90 days after the [last] day on which the |
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governing body adopted the proposed tax rate. Section 41.001, |
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Election Code, [it could have acted to approve or disapprove the
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petition. A state law requiring local elections to be held on a
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specified date] does not apply to the election unless a [specified] |
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date specified by that section falls within the time permitted by |
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this section. At the election, the ballots shall be prepared to |
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permit voting for or against the proposition: "Approving |
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["Reducing] the proposed ad valorem tax rate of $_____ per $100 |
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valuation in (name of taxing unit) for the current year, a rate that |
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is $_____ higher per $100 valuation than the [from (the rate
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adopted) to (the] rollback tax rate [calculated as provided by this
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chapter)]." The ballot proposition must include the proposed tax |
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rate and the difference between that rate and the rollback tax rate |
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in the appropriate places. |
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(c) [(e)] If a majority of the votes cast [qualified voters
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voting on the question] in the election favor the proposition, the |
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proposition is approved and the tax rate for the [taxing unit for
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the] current year is the proposed [rollback] tax rate that was |
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[calculated as provided by this chapter; otherwise, the tax rate
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for the current year is the one] adopted by the governing body. |
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(d) [(f)] If the proposition is not approved as provided by |
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Subsection (c), the governing body may not adopt a tax rate for the |
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taxing unit for the current year that exceeds the taxing unit's |
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rollback tax rate [is reduced by an election called under this
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section after tax bills for the unit are mailed, the assessor for
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the unit shall prepare and mail corrected tax bills. He shall
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include with the bill a brief explanation of the reason for and
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effect of the corrected bill. The date on which the taxes become
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delinquent for the year is extended by a number of days equal to the
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number of days between the date the first tax bills were sent and
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the date the corrected tax bills were sent]. |
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[(g)
If a property owner pays taxes calculated using the
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higher tax rate when the rate is reduced by an election called under
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this section, the taxing unit shall refund the difference between
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the amount of taxes paid and the amount due under the reduced rate
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if the difference between the amount of taxes paid and the amount
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due under the reduced
rate is $1 or more.
If the difference between
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the amount of taxes paid and the amount due under the reduced rate
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is less than $1, the taxing unit shall refund the difference on
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request of the taxpayer.
An application for a refund of less than
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$1 must be made within 90 days after the date the refund becomes due
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or the taxpayer forfeits the right to the refund.] |
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SECTION 2.02. Subsections (a) and (b), Section 31.12, Tax |
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Code, are amended to read as follows: |
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(a) If a refund of a tax provided by Section 11.431(b), |
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[26.07(g),] 26.15(f), 31.11, or 31.111 is paid on or before the 60th |
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day after the date the liability for the refund arises, no interest |
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is due on the amount refunded. If not paid on or before that 60th |
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day, the amount of the tax to be refunded accrues interest at a rate |
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of one percent for each month or part of a month that the refund is |
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unpaid, beginning with the date on which the liability for the |
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refund arises. |
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(b) For purposes of this section, liability for a refund |
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arises: |
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(1) if the refund is required by Section 11.431(b), on |
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the date the chief appraiser notifies the collector for the unit of |
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the approval of the late homestead exemption; |
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(2) [if the refund is required by Section 26.07(g), on
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the date the results of the election to reduce the tax rate are
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certified;
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[(3)] if the refund is required by Section 26.15(f): |
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(A) for a correction to the tax roll made under |
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Section 26.15(b), on the date the change in the tax roll is |
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certified to the assessor for the taxing unit under Section 25.25; |
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or |
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(B) for a correction to the tax roll made under |
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Section 26.15(c), on the date the change in the tax roll is ordered |
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by the governing body of the taxing unit; |
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(3) [(4)] if the refund is required by Section 31.11, |
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on the date the auditor for the taxing unit determines that the |
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payment was erroneous or excessive or, if the amount of the refund |
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exceeds the applicable amount specified by Section 31.11(a), on the |
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date the governing body of the unit approves the refund; or |
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(4) [(5)] if the refund is required by Section 31.111, |
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on the date the collector for the taxing unit determines that the |
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payment was erroneous. |
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SECTION 2.03. Subsection (b), Section 33.08, Tax Code, is |
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amended to read as follows: |
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(b) The governing body of the taxing unit or appraisal |
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district, in the manner required by law for official action, may |
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provide that taxes that become delinquent on or after June 1 under |
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Section [26.07(f),] 26.15(e), 31.03, 31.031, 31.032, or 31.04 incur |
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an additional penalty to defray costs of collection. The amount of |
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the penalty may not exceed the amount of the compensation specified |
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in the applicable contract with an attorney under Section 6.30 to be |
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paid in connection with the collection of the delinquent taxes. |
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SECTION 2.04. Section 49.236, Water Code, as added by |
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Chapters 248 (H.B. 1541) and 335 (S.B. 392), Acts of the 78th |
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Legislature, Regular Session, 2003, is reenacted and amended to |
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read as follows: |
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Sec. 49.236. NOTICE OF TAX HEARING. (a) Before the board |
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adopts an ad valorem tax rate for the district for debt service, |
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operation and maintenance purposes, or contract purposes, the board |
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shall give notice of each meeting of the board at which the adoption |
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of a tax rate will be considered. The notice must: |
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(1) contain a statement in substantially the following |
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form: |
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"NOTICE OF PUBLIC HEARING ON TAX RATE |
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"The (name of the district) will hold a public hearing on a |
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proposed tax rate for the tax year (year of tax levy) on (date and |
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time) at (meeting place). Your individual taxes may increase or |
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decrease, depending on the change in the taxable value of your |
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property in relation to the change in taxable value of all other |
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property and the tax rate that is adopted. |
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"(Names of all board members and, if a vote was taken, an |
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indication of how each voted on the proposed tax rate and an |
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indication of any absences.)"; |
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(2) contain the following information: |
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(A) the district's total adopted tax rate for the |
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preceding year and the proposed tax rate, expressed as an amount per |
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$100; |
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(B) 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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year; |
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(C) the average appraised value of a residence |
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homestead in the district in the preceding year and in the current |
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year; the district's total 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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district in each of those years, disregarding any homestead |
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exemption available only to disabled persons or persons 65 years of |
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age or older; |
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(D) the amount of tax that would have been |
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imposed by the district in the preceding 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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(E) the amount of tax that would be imposed by the |
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district in the current year on a residence homestead appraised at |
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the average appraised value of a residence homestead in that year, |
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disregarding any homestead exemption available only to disabled |
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persons or persons 65 years of age or older, if the proposed tax |
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rate is adopted; and |
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(F) the difference between the amounts of tax |
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calculated under Paragraphs (D) and (E), expressed in dollars and |
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cents and described as the annual percentage increase or decrease, |
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as applicable, in the tax to be imposed by the district on the |
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average residence homestead in the district in the current year if |
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the proposed tax rate is adopted; and |
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(3) contain a statement in substantially the following |
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form: |
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"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO
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ROLLBACK ELECTION] |
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"If taxes on the average residence homestead increase by more |
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than eight percent, [the qualified voters of the district by
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petition may require that] an election must be held to determine |
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whether to ratify [reduce] the operation and maintenance tax rate |
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[to the rollback tax rate] under Section 49.236(d), Water Code." |
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(b) Notice of the hearing shall be: |
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(1) published at least once in a newspaper having |
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general circulation in the district at least seven days before the |
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date of the hearing; or |
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(2) mailed to each owner of taxable property in the |
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district, at the address for notice shown on the most recently |
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certified tax roll of the district, at least 10 days before the date |
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of the hearing. |
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(c) The notice provided under this section may not be |
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smaller than one-quarter page of a standard-size or tabloid-size |
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newspaper of general circulation, and the headline on the notice |
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must be in 18-point or larger type. |
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(d) If the governing body of a district adopts a combined |
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debt service, operation and maintenance, and contract tax rate that |
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would impose more than 1.08 times the amount of tax imposed by the |
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district in the preceding 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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district 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, [the qualified voters of the district by petition may
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require that] an election must be held to determine whether [or not] |
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to ratify [reduce] the tax rate adopted for the current year [to the
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rollback tax rate] in accordance with the procedures provided by |
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Section 26.07 [Sections 26.07(b)-(g) and 26.081], Tax Code. For |
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purposes of Section 26.07, Tax Code, [Sections 26.07(b)-(g)] and |
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this subsection, the rollback tax rate is the current year's debt |
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service and contract tax rates plus the operation and maintenance |
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tax rate that would impose 1.08 times the amount of the operation |
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and maintenance tax imposed by the district in the preceding year on |
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a residence homestead appraised at the average appraised value of a |
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residence homestead in the district in that year, disregarding any |
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homestead exemption available only to disabled persons or persons |
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65 years of age or older. |
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SECTION 2.05. (a) The change in law made by this article |
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applies to the ad valorem tax rate of a taxing unit beginning with |
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the 2009 tax year, except as provided by Subsection (b) of this |
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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 article, the change in law made by this |
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article applies to the ad valorem tax rate of that taxing unit |
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beginning with the 2010 tax year, and the law in effect when the tax |
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rate was adopted applies to the 2009 tax year with respect to that |
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taxing unit. |
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SECTION 2.06. This article takes effect immediately if this |
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Act receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this article takes effect on the 91st day after the last day |
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of the legislative session. |
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ARTICLE 3. ELECTRONIC PROTEST PROCEDURE |
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SECTION 3.01. Subchapter C, Chapter 41, Tax Code, is |
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amended by adding Section 41.415 to read as follows: |
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Sec. 41.415. ELECTRONIC FILING OF NOTICE OF PROTEST. |
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(a) This section applies only to an appraisal district established |
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for a county having a population of 500,000 or more. |
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(b) The appraisal district shall implement a system that |
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allows the owner of a property that for the current tax year has |
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been granted a residence homestead exemption under Section 11.13, |
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in connection with the property, to electronically: |
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(1) file a notice of protest under Section 41.41(a)(1) |
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or (2) with the appraisal review board; |
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(2) receive and review comparable sales data and other |
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evidence that the chief appraiser intends to use at the protest |
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hearing before the board; |
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(3) receive, as applicable: |
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(A) a settlement offer from the district to |
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correct the appraisal records by changing the appraised value of |
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the property to the value as redetermined by the district; or |
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(B) a notice from the district that a settlement |
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offer will not be made; and |
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(4) accept or reject a settlement offer received from |
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the appraisal district under Subdivision (3)(A). |
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(c) With each notice sent under Section 25.19 to an eligible |
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property owner, the chief appraiser shall include information about |
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the system required by this section, including instructions for |
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accessing and using the system. |
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(d) A notice of protest filed electronically under this |
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section must include, at a minimum: |
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(1) a statement as to whether the protest is brought |
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under Section 41.41(a)(1) or under Section 41.41(a)(2); |
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(2) a statement of the property owner's good faith |
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estimate of the value of the property; and |
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(3) an electronic mail address that the district may |
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use to communicate electronically with the property owner in |
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connection with the protest. |
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(e) If the property owner accepts a settlement offer made by |
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the appraisal district, the chief appraiser shall notify the |
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appraisal review board. The board shall determine the protest |
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accordingly and otherwise comply with Section 41.47. |
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(f) If the property owner rejects a settlement offer, the |
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appraisal review board shall hear and determine the property |
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owner's protest in the manner otherwise provided by this subchapter |
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and Subchapter D. |
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(g) An appraisal district is not required to make the system |
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required by this section available to an owner of a residence |
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homestead located in an area in which the chief appraiser |
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determines that the factors affecting the market value of real |
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property are unusually complex. |
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(h) An electronic mail address provided by a property owner |
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to an appraisal district under Subsection (d)(3) is confidential |
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and may not be disclosed by the district. |
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(i) The comptroller shall encourage appraisal districts to |
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which this section does not apply to voluntarily implement an |
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electronic system for filing protests. |
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SECTION 3.02. Section 41.415, Tax Code, as added by this |
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article, applies only to a tax year that begins on or after the |
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effective date of this Act. |
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ARTICLE 4. EFFECTIVE DATE |
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SECTION 4.01. Except as otherwise provided by this Act, |
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this Act takes effect January 1, 2010. |
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* * * * * |