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A BILL TO BE ENTITLED
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AN ACT
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relating to the eligibility of the former spouse of a person who is |
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elderly or disabled to receive a limitation on the amount of ad |
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valorem taxes imposed on the spouse's residence homestead by |
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certain taxing units. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.26, Tax Code, is amended by amending |
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Subsections (g), (h), (j), and (k) and adding Subsection (i-1) to |
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read as follows: |
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(g) Except as provided by Subsection (b), if an individual |
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who receives a limitation on tax increases imposed by this section, |
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including a surviving spouse who receives a limitation under |
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Subsection (i) or a former spouse who receives a limitation under |
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Subsection (i-1), subsequently qualifies a different residence |
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homestead for the same exemption under Section 11.13, a school |
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district may not impose ad valorem taxes on the subsequently |
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qualified homestead in a year in an amount that exceeds the amount |
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of taxes the school district would have imposed on the subsequently |
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qualified homestead in the first year in which the individual |
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receives that same exemption for the subsequently qualified |
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homestead had the limitation on tax increases imposed by this |
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section not been in effect, multiplied by a fraction the numerator |
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of which is the total amount of school district taxes imposed on the |
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former homestead in the last year in which the individual received |
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that same exemption for the former homestead and the denominator of |
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which is the total amount of school district taxes that would have |
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been imposed on the former homestead in the last year in which the |
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individual received that same exemption for the former homestead |
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had the limitation on tax increases imposed by this section not been |
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in effect. |
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(h) An individual who receives a limitation on tax increases |
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under this section, including a surviving spouse who receives a |
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limitation under Subsection (i) or a former spouse who receives a |
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limitation under Subsection (i-1), and who subsequently qualifies a |
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different residence homestead for an exemption under Section 11.13, |
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or an agent of the individual, is entitled to receive from the chief |
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appraiser of the appraisal district in which the former homestead |
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was located a written certificate providing the information |
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necessary to determine whether the individual may qualify for that |
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same limitation on the subsequently qualified homestead under |
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Subsection (g) and to calculate the amount of taxes the school |
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district may impose on the subsequently qualified homestead. |
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(i-1) If the marriage of an individual who qualifies for the |
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exemption provided by Section 11.13(c) for an individual 65 years |
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of age or older is dissolved by divorce or annulment, the former |
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spouse of the individual is entitled to the limitation applicable |
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to the residence homestead of the individual if: |
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(1) the former spouse is 55 years of age or older when |
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the decree of divorce or annulment is signed or becomes final after |
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appeal; and |
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(2) the residence homestead of the individual: |
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(A) is the residence homestead of the former |
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spouse on the date the decree of divorce or annulment is signed or |
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becomes final after appeal; and |
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(B) remains the residence homestead of the former |
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spouse. |
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(j) If an individual who qualifies for an exemption provided |
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by Section 11.13(c) for an individual 65 years of age or older dies |
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or the marriage of such an individual is dissolved by divorce or |
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annulment in the first year in which the individual qualified for |
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the exemption and the individual first qualified for the exemption |
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after the beginning of that year, except as provided by Subsection |
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(k), the amount to which the surviving spouse's or former spouse's |
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school district taxes are limited under Subsection (i) or (i-1), |
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respectively, is the amount of school district taxes imposed on the |
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residence homestead in that year determined as if the individual |
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qualifying for the exemption had lived or remained married for the |
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entire year. |
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(k) If in the first tax year after the year in which an |
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individual dies or the marriage of an individual is dissolved by |
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divorce or annulment in the circumstances described by Subsection |
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(j) the amount of school district taxes imposed on the residence |
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homestead of the surviving spouse or former spouse is less than the |
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amount of school district taxes imposed in the preceding year as |
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limited by Subsection (j), in a subsequent tax year the surviving |
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spouse's or former spouse's school district taxes on that residence |
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homestead are limited to the amount of taxes imposed by the district |
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in that first tax year after the year in which the individual dies |
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or the marriage of the individual is dissolved by divorce or |
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annulment. |
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SECTION 2. Section 11.261, Tax Code, is amended by adding |
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Subsection (i-1) and amending Subsections (j) and (k) to read as |
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follows: |
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(i-1) If the marriage of an individual who qualifies for a |
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limitation on county, municipal, or junior college district tax |
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increases under this section is dissolved by divorce or annulment, |
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the former spouse of the individual is entitled to the limitation on |
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taxes imposed by the county, municipality, or junior college |
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district on the residence homestead of the individual if: |
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(1) the former spouse is disabled or is 55 years of age |
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or older when the decree of divorce or annulment is signed or |
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becomes final after appeal; and |
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(2) the residence homestead of the individual: |
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(A) is the residence homestead of the former |
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spouse on the date the decree of divorce or annulment is signed or |
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becomes final after appeal; and |
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(B) remains the residence homestead of the former |
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spouse. |
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(j) If an individual who is 65 years of age or older and |
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qualifies for a limitation on county, municipal, or junior college |
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district tax increases for the elderly under this section dies or |
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the marriage of such an individual is dissolved by divorce or |
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annulment in the first year in which the individual qualified for |
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the limitation and the individual first qualified for the |
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limitation after the beginning of that year, except as provided by |
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Subsection (k), the amount to which the surviving spouse's or |
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former spouse's county, municipal, or junior college district taxes |
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are limited under Subsection (i) or (i-1), respectively, is the |
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amount of taxes imposed by the county, municipality, or junior |
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college district, as applicable, on the residence homestead in that |
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year determined as if the individual qualifying for the exemption |
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had lived or remained married for the entire year. |
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(k) If in the first tax year after the year in which an |
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individual who is 65 years of age or older dies or the marriage of |
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such an individual is dissolved by divorce or annulment under the |
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circumstances described by Subsection (j) the amount of taxes |
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imposed by a county, municipality, or junior college district on |
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the residence homestead of the surviving spouse or former spouse is |
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less than the amount of taxes imposed by the county, municipality, |
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or junior college district in the preceding year as limited by |
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Subsection (j), in a subsequent tax year the surviving spouse's or |
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former spouse's taxes imposed by the county, municipality, or |
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junior college district on that residence homestead are limited to |
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the amount of taxes imposed by the county, municipality, or junior |
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college district in that first tax year after the year in which the |
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individual dies or the marriage of the individual is dissolved by |
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divorce or annulment. |
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SECTION 3. Section 44.004(c), Education Code, is amended to |
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read as follows: |
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(c) The notice of public meeting to discuss and adopt the |
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budget and the proposed tax rate may not be smaller than one-quarter |
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page of a standard-size or a tabloid-size newspaper, and the |
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headline on the notice must be in 18-point or larger type. Subject |
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to Subsection (d), the notice must: |
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(1) contain a statement in the following form: |
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"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE |
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"The (name of school district) will hold a public meeting at |
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(time, date, year) in (name of room, building, physical location, |
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city, state). The purpose of this meeting is to discuss the school |
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district's budget that will determine the tax rate that will be |
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adopted. Public participation in the discussion is invited." The |
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statement of the purpose of the meeting must be in bold type. In |
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reduced type, the notice must state: "The tax rate that is |
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ultimately adopted at this meeting or at a separate meeting at a |
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later date may not exceed the proposed rate shown below unless the |
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district publishes a revised notice containing the same information |
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and comparisons set out below and holds another public meeting to |
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discuss the revised notice."; |
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(2) contain a section entitled "Comparison of Proposed |
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Budget with Last Year's Budget," which must show the difference, |
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expressed as a percent increase or decrease, as applicable, in the |
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amounts budgeted for the preceding fiscal year and the amount |
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budgeted for the fiscal year that begins in the current tax year for |
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each of the following: |
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(A) maintenance and operations; |
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(B) debt service; and |
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(C) total expenditures; |
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(3) contain a section entitled "Total Appraised Value |
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and Total Taxable Value," which must show the total appraised value |
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and the total taxable value of all property and the total appraised |
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value and the total taxable value of new property taxable by the |
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district in the preceding tax year and the current tax year as |
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calculated under Section 26.04, Tax Code; |
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(4) contain a statement of the total amount of the |
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outstanding and unpaid bonded indebtedness of the school district; |
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(5) contain a section entitled "Comparison of Proposed |
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Rates with Last Year's Rates," which must: |
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(A) show in rows the tax rates described by |
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Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of |
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property, for columns entitled "Maintenance & Operations," |
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"Interest & Sinking Fund," and "Total," which is the sum of |
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"Maintenance & Operations" and "Interest & Sinking Fund": |
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(i) the school district's "Last Year's |
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Rate"; |
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(ii) the "Rate to Maintain Same Level of |
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Maintenance & Operations Revenue & Pay Debt Service," which: |
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(a) in the case of "Maintenance & |
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Operations," is the tax rate that, when applied to the current |
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taxable value for the district, as certified by the chief appraiser |
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under Section 26.01, Tax Code, and as adjusted to reflect changes |
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made by the chief appraiser as of the time the notice is prepared, |
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would impose taxes in an amount that, when added to state funds to |
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be distributed to the district under Chapter 42, would provide the |
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same amount of maintenance and operations taxes and state funds |
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distributed under Chapter 42 per student in average daily |
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attendance for the applicable school year that was available to the |
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district in the preceding school year; and |
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(b) in the case of "Interest & Sinking |
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Fund," is the tax rate that, when applied to the current taxable |
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value for the district, as certified by the chief appraiser under |
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Section 26.01, Tax Code, and as adjusted to reflect changes made by |
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the chief appraiser as of the time the notice is prepared, and when |
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multiplied by the district's anticipated collection rate, would |
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impose taxes in an amount that, when added to state funds to be |
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distributed to the district under Chapter 46 and any excess taxes |
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collected to service the district's debt during the preceding tax |
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year but not used for that purpose during that year, would provide |
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the amount required to service the district's debt; and |
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(iii) the "Proposed Rate"; |
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(B) contain fourth and fifth columns aligned with |
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the columns required by Paragraph (A) that show, for each row |
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required by Paragraph (A): |
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(i) the "Local Revenue per Student," which |
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is computed by multiplying the district's total taxable value of |
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property, as certified by the chief appraiser for the applicable |
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school year under Section 26.01, Tax Code, and as adjusted to |
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reflect changes made by the chief appraiser as of the time the |
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notice is prepared, by the total tax rate, and dividing the product |
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by the number of students in average daily attendance in the |
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district for the applicable school year; and |
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(ii) the "State Revenue per Student," which |
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is computed by determining the amount of state aid received or to be |
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received by the district under Chapters 42, 43, and 46 and dividing |
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that amount by the number of students in average daily attendance in |
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the district for the applicable school year; and |
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(C) contain an asterisk after each calculation |
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for "Interest & Sinking Fund" and a footnote to the section that, in |
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reduced type, states "The Interest & Sinking Fund tax revenue is |
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used to pay for bonded indebtedness on construction, equipment, or |
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both. The bonds, and the tax rate necessary to pay those bonds, |
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were approved by the voters of this district."; |
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(6) contain a section entitled "Comparison of Proposed |
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Levy with Last Year's Levy on Average Residence," which must: |
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(A) show in rows the information described by |
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Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns |
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entitled "Last Year" and "This Year": |
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(i) "Average Market Value of Residences," |
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determined using the same group of residences for each year; |
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(ii) "Average Taxable Value of Residences," |
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determined after taking into account the limitation on the |
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appraised value of residences under Section 23.23, Tax Code, and |
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after subtracting all homestead exemptions applicable in each year, |
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other than exemptions available only to [disabled] persons who are |
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disabled or persons 65 years of age or older or their surviving |
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spouses, and using the same group of residences for each year; |
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(iii) "Last Year's Rate Versus Proposed |
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Rate per $100 Value"; and |
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(iv) "Taxes Due on Average Residence," |
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determined using the same group of residences for each year; and |
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(B) contain the following |
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information: "Increase (Decrease) in Taxes" expressed in dollars |
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and cents, which is computed by subtracting the "Taxes Due on |
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Average Residence" for the preceding tax year from the "Taxes Due on |
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Average Residence" for the current tax year; |
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(7) contain the following statement in bold |
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print: "Under state law, the dollar amount of school taxes imposed |
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on the residence of a person 65 years of age or older or of the |
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surviving spouse or former spouse of such a person, if the surviving |
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spouse or former spouse was 55 years of age or older when the person |
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died or the marriage of the person was dissolved by divorce or |
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annulment, may not be increased above the amount paid in the first |
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year after the person turned 65, regardless of changes in tax rate |
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or property value."; |
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(8) contain the following statement in bold |
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print: "Notice of Rollback Rate: The highest tax rate the |
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district can adopt before requiring voter approval at an election |
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is (the school district rollback rate determined under Section |
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26.08, Tax Code). This election will be automatically held if the |
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district adopts a rate in excess of the rollback rate of (the school |
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district rollback rate)."; and |
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(9) contain a section entitled "Fund Balances," which |
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must include 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 debt |
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obligation, less estimated funds necessary for the operation of the |
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district before the receipt of the first payment under Chapter 42 in |
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the succeeding school year. |
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SECTION 4. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 5. This Act takes effect January 1, 2014, but only |
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if the constitutional amendment relating to the eligibility of the |
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former spouse of a person who is elderly or disabled to receive a |
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limitation on the amount of ad valorem taxes imposed on the spouse's |
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residence homestead by certain political subdivisions is approved |
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by the voters. If that amendment is not approved by the voters, |
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this Act has no effect. |