By: Williams  S.B. No. 1771
         (In the Senate - Filed March 11, 2011; March 23, 2011, read
  first time and referred to Committee on Finance; May 6, 2011,
  reported favorably by the following vote:  Yeas 9, Nays 1;
  May 6, 2011, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the provision of information by tax officials related
  to ad valorem tax rates.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsections (b) and (i), Section 25.19, Tax
  Code, are amended to read as follows:
         (b)  The chief appraiser shall separate real from personal
  property and include in the notice for each:
               (1)  a list of the taxing units in which the property is
  taxable;
               (2)  the appraised value of the property in the
  preceding year;
               (3)  the taxable value of the property in the preceding
  year for each taxing unit taxing the property;
               (4)  the appraised value of the property for the
  current year and the kind and amount of each partial exemption, if
  any, approved for the current year;
               (5)  [if the appraised value is greater than it was in
  the preceding year, the amount of tax that would be imposed on the
  property on the basis of the tax rate for the preceding year;
               [(6)]  in italic typeface, the following
  statement:  "The Texas Legislature does not set the amount of your
  local taxes.  Your property tax burden is decided by your locally
  elected officials, and all inquiries concerning your taxes should
  be directed to those officials";
               (6) [(7)]  a detailed explanation of the time and
  procedure for protesting the value;
               (7) [(8)]  the date and place the appraisal review
  board will begin hearing protests; and
               (8) [(9)]  a brief explanation that the governing body
  of each taxing unit decides whether or not taxes on the property
  will increase and the appraisal district only determines the value
  of the property.
         (i)  Delivery with a notice required by Subsection (a) or (g)
  of a copy of the pamphlet published by the comptroller under Section
  5.06 or a copy of the notice published by the chief appraiser under
  Section 41.70 is sufficient to comply with the requirement that the
  notice include the information specified by Subsection (b)(6)
  [(b)(7)] or (g)(3), as applicable.
         SECTION 2.  Section 26.012, Tax Code, is amended by adding
  Subdivisions (13-a) and (13-b) to read as follows:
               (13-a)  "Last year's maintenance and operations levy"
  means the difference between last year's levy and the sum of last
  year's debt levy and last year's junior college levy.
               (13-b)  "Last year's maintenance and operations rate"
  means the rate expressed in dollars per $100 of taxable value
  adopted in the preceding year for maintenance and operations.
         SECTION 3.  The heading to Section 26.04, Tax Code, is
  amended to read as follows:
         Sec. 26.04.  SUBMISSION OF ROLL TO GOVERNING BODY;
  EFFECTIVE, SAME SERVICES, AND ROLLBACK TAX RATES.
         SECTION 4.  Subsections (b) through (e), (e-1), (f), (i),
  and (j), Section 26.04, Tax Code, are amended to read as follows:
         (b)  The assessor shall submit the appraisal roll for the
  unit showing the total appraised, assessed, and taxable values of
  all property and the total taxable value of new property to the
  governing body of the unit not later than the 21st day after the
  date the appraisal roll is certified to the assessor. On or before
  the 21st day after the date the appraisal roll is certified by the
  assessor [by August 1 or as soon thereafter as practicable. By
  August 1 or as soon thereafter as practicable], the taxing unit's
  collector shall certify an estimate of the collection rate for the
  current year to the governing body. If the collector certified an
  anticipated collection rate in the preceding year and the actual
  collection rate in that year exceeded the anticipated rate, the
  collector shall also certify the amount of debt taxes collected in
  excess of the anticipated amount in the preceding year.
         (c)  Not later than the 30th day after the date the appraisal
  roll is certified to the assessor, an [An] officer or employee
  designated by the governing body shall calculate the effective tax
  rate, the same services tax rate, and the rollback tax rate for the
  unit, where:
               (1)  "Effective tax rate" means a rate expressed in
  dollars per $100 of taxable value calculated according to the
  following formula:
  EFFECTIVE TAX RATE =     (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
                             (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
  ; [and]
               (2)  "Same services tax rate" means a rate expressed in
  dollars per $100 of taxable value calculated according to the
  following formula:
  SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
                            LEVY + (NEW PROPERTY VALUE x LAST YEAR'S
  MAINTENANCE AND OPERATIONS RATE))/CURRENT
  TOTAL VALUE] + CURRENT DEBT RATE
  ; and
               (3)  "Rollback tax rate" means a rate expressed in
  dollars per $100 of taxable value calculated according to the
  following formula:
  ROLLBACK TAX RATE =   (EFFECTIVE MAINTENANCE AND OPERATIONS RATE
                           x 1.08) + CURRENT DEBT RATE
         (d)  The effective tax rate for a county is the sum of the
  effective tax rates calculated for each type of tax the county
  levies. The same services tax rate for a county is the sum of the
  same services tax rates calculated for each type of tax the county
  levies. The [and the] rollback tax rate for a county is the sum of
  the rollback tax rates calculated for each type of tax the county
  levies.
         (e)  Not later than the fifth day after the date the
  designated officer or employee completes the calculations required
  by Subsections (c) and (d) [By August 7 or as soon thereafter as
  practicable], the designated officer or employee shall submit the
  rates to the governing body and provide to the chief appraiser in
  the form prescribed by the comptroller the effective tax rate, the
  same services tax rate, the rollback tax rate, and an explanation of
  how they were calculated.  At least 14 days before the date of the
  first meeting of the governing body to consider the budget for the
  current tax year, the designated officer or employee[.  He] shall
  deliver by mail to each property owner in the unit or publish in a
  newspaper in the form prescribed by the comptroller:
               (1)  last year's [the effective] tax rate, the same
  services [rollback] tax rate, the tax rate required to fund the
  budget for the current tax year, and an explanation of their meaning
  and how they were calculated;
               (2)  a statement, including an example calculation,
  that the tax liability of any parcel of taxable property can be
  derived by multiplying the property's taxable value as computed on
  the basis of the notice of appraised value delivered by the
  appraisal district by each tax rate; and
               (3)  a statement that adoption by the governing body of
  a tax rate for the current year that is higher than the same
  services tax rate will constitute an overall tax increase [the
  estimated amount of interest and sinking fund balances and the
  estimated amount of maintenance and operation or general fund
  balances remaining at the end of the current fiscal year that are
  not encumbered with or by corresponding existing debt obligation;
               [(3)     a schedule of the unit's debt obligations
  showing:
                     [(A)     the amount of principal and interest that
  will be paid to service the unit's debts in the next year from
  property tax revenue, including payments of lawfully incurred
  contractual obligations providing security for the payment of the
  principal of and interest on bonds and other evidences of
  indebtedness issued on behalf of the unit by another political
  subdivision and, if the unit is created under Section 52, Article
  III, or Section 59, Article XVI, Texas Constitution, payments on
  debts that the unit anticipates to incur in the next calendar year;
                     [(B)     the amount by which taxes imposed for debt
  are to be increased because of the unit's anticipated collection
  rate; and
                     [(C)     the total of the amounts listed in
  Paragraphs (A)-(B), less any amount collected in excess of the
  previous year's anticipated collections certified as provided in
  Subsection (b);
               [(4)     the amount of additional sales and use tax
  revenue anticipated in calculations under Section 26.041;
               [(5)     a statement that the adoption of a tax rate equal
  to the effective tax rate would result in an increase or decrease,
  as applicable, in the amount of taxes imposed by the unit as
  compared to last year's levy, and the amount of the increase or
  decrease;
               [(6)     in the year that a taxing unit calculates an
  adjustment under Subsection (i) or (j), a schedule that includes
  the following elements:
                     [(A)     the name of the unit discontinuing the
  department, function, or activity;
                     [(B)     the amount of property tax revenue spent by
  the unit listed under Paragraph (A) to operate the discontinued
  department, function, or activity in the 12 months preceding the
  month in which the calculations required by this chapter are made;
  and
                     [(C)     the name of the unit that operates a
  distinct department, function, or activity in all or a majority of
  the territory of a taxing unit that has discontinued operating the
  distinct department, function, or activity; and
               [(7)     in the year following the year in which a taxing
  unit raised its rollback rate as required by Subsection (j), a
  schedule that includes the following elements:
                     [(A)     the amount of property tax revenue spent by
  the unit to operate the department, function, or activity for which
  the taxing unit raised the rollback rate as required by Subsection
  (j) for the 12 months preceding the month in which the calculations
  required by this chapter are made; and
                     [(B)     the amount published by the unit in the
  preceding tax year under Subdivision (6)(B)].
         (e-1)  The notice requirements imposed by Subsection (e)
  [Subsections (e)(1)-(6)] do not apply to a school district.
         (f)  If as a result of consolidation of taxing units a taxing
  unit includes territory that was in two or more taxing units in the
  preceding year, the amount of taxes imposed in each in the preceding
  year is combined for purposes of calculating the effective, same
  services, and rollback tax rates under this section.
         (i)  This subsection applies to a taxing unit that has agreed
  by written contract to transfer a distinct department, function, or
  activity to another taxing unit and discontinues operating that
  distinct department, function, or activity if the operation of that
  department, function, or activity in all or a majority of the
  territory of the taxing unit is continued by another existing
  taxing unit or by a new taxing unit. The rollback tax rate of a
  taxing unit to which this subsection applies in the first tax year
  in which a budget is adopted that does not allocate revenue to the
  discontinued department, function, or activity is calculated as
  otherwise provided by this section, except that last year's levy
  used to calculate the effective maintenance and operations rate and
  the same services tax rate of the unit is reduced by the amount of
  maintenance and operations tax revenue spent by the taxing unit to
  operate the department, function, or activity for the 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 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 shall reduce last year's levy used for calculating
  the effective maintenance and operations rate and the same services
  tax rate of the unit by the amount of the revenue spent in the last
  full fiscal year in which the unit operated the discontinued
  department, function, or activity.
         (j)  This subsection applies to a taxing unit that had agreed
  by written contract to accept the transfer of a distinct
  department, function, or activity from another taxing unit and
  operates a distinct department, function, or activity if the
  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 effective maintenance and operations rate and the
  same services tax 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 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 levy used to calculate the effective
  maintenance and operations rate and the same services tax rate by an
  amount not to exceed the amount of property tax revenue spent by the
  discontinuing unit to operate the discontinued department,
  function, or activity in the last full fiscal year in which the
  discontinuing unit operated the department, function, or activity.
         SECTION 5.  Subsections (a), (c), (e), (g), and (h), Section
  26.041, Tax Code, are amended to read as follows:
         (a)  In the first year in which an additional sales and use
  tax is required to be collected, the effective tax rate, same
  services tax rate, and rollback tax rate for the unit are calculated
  according to the following formulas:
  EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY)/
                          (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
  SALES TAX GAIN RATE
  SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
                             LEVY + (NEW PROPERTY VALUE x LAST YEAR'S
  MAINTENANCE AND OPERATIONS RATE)) /
  CURRENT TOTAL VALUE] + CURRENT DEBT RATE -
  SALES TAX GAIN RATE
  and
  ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
                          1.08) + CURRENT DEBT RATE - SALES TAX GAIN
  RATE
  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.
         (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 effective tax rate, same services tax rate, and
  rollback tax rate for the unit are calculated according to the
  following formulas:
  EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
                          (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
  SALES TAX LOSS RATE
  SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
                              LEVY + (NEW PROPERTY VALUE x LAST YEAR'S
  MAINTENANCE AND OPERATIONS RATE))/CURRENT
  TOTAL VALUE] + CURRENT DEBT RATE + SALES
  TAX LOSS RATE
  and
  ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
                         EXPENSE x 1.08)/([TOTAL] CURRENT TOTAL VALUE -
  NEW PROPERTY VALUE)] + 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.
         (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 effective, same services, and rollback tax
  rates 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.
         (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:
               (1) [,]  the effective tax rate for the unit is the
  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; and
               (2)  the same services tax rate for the unit is the same
  services 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:
               (1)  [,] the effective tax rate for the unit is the
  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; and
               (2)  the same services tax rate for the unit is the same
  services 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.
         SECTION 6.  The heading to Section 26.043, Tax Code, is
  amended to read as follows:
         Sec. 26.043.  ROLLBACK, EFFECTIVE, AND SAME SERVICES TAX
  RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
         SECTION 7.  Subsections (a) and (b), Section 26.043, Tax
  Code, are amended to read as follows:
         (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] effective, and same services 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 effective, same services, or rollback
  tax rate refers to that rate as adjusted under this section.
         SECTION 8.  The heading to Section 26.044, Tax Code, is
  amended to read as follows:
         Sec. 26.044.  EFFECTIVE AND SAME SERVICES TAX RATES [RATE]
  TO PAY FOR STATE CRIMINAL JUSTICE MANDATE.
         SECTION 9.  Subsections (a) and (b), Section 26.044, Tax
  Code, are amended to read as follows:
         (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 effective maintenance and operation rate
  and the same services tax rate for the county are [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 effective
  maintenance and operation rate and the same services tax rate for
  the county are [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)
         SECTION 10.  Subsections (a) and (b), Section 26.0441, Tax
  Code, are amended to read as follows:
         (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 effective maintenance and operations rate and the same services
  tax rate for the taxing unit are [is] increased by the rate computed
  according to the following formula:
  Amount of Increase = Enhanced Indigent Health Care Expenditures /
  (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 effective maintenance and
  operations rate and the same services tax rate for the taxing unit
  are [is] increased by the rate computed according to the following
  formula:
  Amount of Increase = (Current Tax Year's Enhanced Indigent Health
  Care Expenditures - Preceding Tax Year's Indigent Health Care
  Expenditures) / (Current Total Value - New Property Value)
         SECTION 11.  Section 26.05, Tax Code, is amended by amending
  Subsections (a) through (d) and (g) and adding Subsection (d-1) to
  read as follows:
         (a)  The governing body of each taxing unit, before the later
  of September 30 or the 90th [60th] day after the date the certified
  appraisal roll is received by the taxing unit, shall adopt a tax
  rate for the current tax year and shall notify the assessor for the
  unit of the rate adopted.  The tax rate consists of two components,
  each of which must be approved separately.  The components are:
               (1)  the following rate, as applicable:
                     (A)  for a taxing unit other than a school
  district, the rate that, if applied to the total taxable value, will
  impose an amount equal to the amount computed by:
                           (i)  adding the following amounts:
                                 (a)  the amount of principal and
  interest that will be paid to service the unit's debts in the next
  year from property tax revenue, including payments of lawfully
  incurred contractual obligations providing security for the
  payment of the principal of and interest on bonds and other
  evidences of indebtedness issued on behalf of the unit by another
  political subdivision and, if the unit is created under Section 52,
  Article III, or Section 59, Article XVI, Texas Constitution,
  payments on debts that the unit anticipates to incur in the next
  calendar year; and
                                 (b)  the amount by which taxes imposed
  for debt are to be increased because of the unit's anticipated
  collection rate; and
                           (ii)  subtracting from the amount computed
  under Subparagraph (i) the sum of the following amounts:
                                 (a)  any amount collected in excess of
  the previous year's anticipated collections certified as provided
  by Section 26.04(b); and
                                 (b)  [the total amount published under
  Section 26.04(e)(3)(C), less] any amount of additional sales and
  use tax revenue that will be used to pay debt service; or
                     (B)  [, or,] for a school district, the rate
  published under Section 44.004(c)(5)(A)(ii)(b), Education Code;
  and
               (2)  the rate that, if applied to the total taxable
  value, will impose the amount of taxes needed to fund maintenance
  and operation expenditures of the unit for the next year.
         (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 same services [effective] tax rate must be
  a record vote.  A motion to adopt an ordinance, resolution, or order
  setting a tax rate that exceeds the same services [effective] tax
  rate must be made in the following form:  "I move that the property
  tax rate be increased by the adoption of a tax rate of (specify tax
  rate), which is effectively a (insert percentage by which the
  proposed tax rate exceeds the same services [effective] tax rate)
  percent increase in the 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 same services tax
  [effective maintenance and operations] rate, the following
  statement:  "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
  PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE SAME SERVICES TAX 
  [EFFECTIVE MAINTENANCE AND OPERATIONS] RATE) PERCENT AND 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 same services tax
  [effective maintenance and operations] rate, the following
  statement:  "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
  PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE SAME SERVICES TAX 
  [EFFECTIVE MAINTENANCE AND OPERATIONS] RATE) PERCENT AND WILL RAISE
  TAXES [FOR MAINTENANCE AND OPERATIONS] ON A $100,000 HOME BY
  APPROXIMATELY $(Insert amount)."
         (c)  If the designated officer or employee [governing body of
  a taxing unit] does not comply with Section 26.04(e) by the date
  required by that subsection and the failure to comply was caused by
  circumstances beyond the designated officer's or employee's
  control, such as a natural disaster [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 same services [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 same services [effective] tax rate
  calculated as provided by this chapter until the governing body has
  complied with Subsection (d-1) of this section and 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 same
  services [effective] tax rate and may not adopt a higher rate unless
  it first complies with Section 26.06.
         (d-1)  Before giving notice of the public hearings on the
  proposed tax rate under Section 26.06, the governing body of a
  taxing unit that is required to comply with that section must take a
  record vote on a proposal to place consideration of an increase in
  taxes on the agenda for the meeting at which the governing body will
  adopt the tax rate. The motion for the vote must be made in the
  following form:  "I move that a proposal to increase property taxes
  by the adoption of a tax rate of (specify tax rate) be placed on the
  agenda for the meeting to be held on (date at which the governing
  body anticipates adopting the tax rate)."
         (g)  Notwithstanding Subsection (a), the governing body of a
  school district that elects to adopt a tax rate before the adoption
  of a budget for the fiscal year that begins in the current tax year
  may adopt a tax rate for the current tax year before receipt of the
  certified appraisal roll for the school district if the chief
  appraiser of the appraisal district in which the school district
  participates has certified to the assessor for the school district
  an estimate of the taxable value of property in the school district
  as provided by Section 26.01(e).  If a school district adopts a tax
  rate under this subsection, the effective tax rate, the same
  services tax rate, and the rollback tax rate of the district shall
  be calculated based on the certified estimate of taxable value.
         SECTION 12.  Subsection (e), Section 26.052, Tax Code, is
  amended 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 same services [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 same services [effective] tax rate)."
         SECTION 13.  Subsections (b), (d), and (e), Section 26.06,
  Tax Code, are amended to read as follows:
         (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 same services
  [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 same services [effective] tax rate for
  this year of $____ (same services [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 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).
         "The taxes on any parcel of taxable property can be derived by
  multiplying the property's taxable value as computed on the basis
  of the notice of appraised value delivered by the appraisal
  district by each of the above tax rates.
         "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
  same services [effective] tax rate calculated under this chapter)
  percent.
         "The total tax revenue proposed to be 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 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 proposed 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
  proposed 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 same services [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 same services [effective] tax rate.
         SECTION 14.  Subsection (c), Section 26.044, and Subsection
  (c), Section 26.0441, Tax Code, are repealed.
         SECTION 15.  This Act applies only to a tax year beginning on
  or after the effective date of this Act.
         SECTION 16.  This Act takes effect January 1, 2012.
 
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