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A BILL TO BE ENTITLED
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AN ACT
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relating to providing transparency in the taxing and budgeting |
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process of certain local governments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 102.007, Local Government Code, is |
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amended by amending Subsections (a) and (c) and adding Subsection |
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(d) to read as follows: |
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(a) At the conclusion of the public hearing, the governing |
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body of the municipality shall take action on the proposed budget. |
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A vote to adopt the budget must be a record vote. |
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(c) Adoption of a budget that will require raising more |
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revenue from property taxes than in the previous year requires a |
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separate record vote of the governing body to ratify the property |
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tax increase reflected in the budget. A record vote under this |
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subsection is in addition to and separate from the record vote to |
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adopt the budget or a record vote to set the tax rate required by |
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Chapter 26, Tax Code, or other law. |
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(d) An adopted budget that will require raising more revenue |
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from property taxes than in the previous year must contain a cover |
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page that includes: |
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(1) the following statement in 18-point or larger |
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type: "This budget will raise more total property taxes than last |
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year's budget by (insert total dollar amount of increase and |
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percentage increase), and of that amount (insert amount computed by |
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multiplying the proposed tax rate by the value of new property added |
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to the roll) is tax revenue to be raised from new property added to |
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the tax roll this year."; |
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(2) the record vote of each member of the governing |
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body by name voting on: |
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(A) the adoption of the budget; |
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(B) the ratification of the property tax increase |
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under Subsection (c), if the vote has been taken; and |
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(C) the setting of the property tax rate for the |
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current fiscal year, if the vote has been taken; |
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(3) the municipal property tax rates for the preceding |
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and current fiscal years, including: |
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(A) the adopted property tax rate; |
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(B) the effective tax rate; |
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(C) the effective maintenance and operations tax |
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rate; |
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(D) the rollback tax rate; and |
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(E) the debt rate; and |
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(4) the total amount of bonds and other debt |
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obligations owed by the municipality. |
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SECTION 2. Section 102.008, Local Government Code, is |
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amended to read as follows: |
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Sec. 102.008. APPROVED BUDGET FILED WITH MUNICIPAL CLERK: |
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POSTING ON INTERNET. (a) On final approval of the budget by the |
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governing body of the municipality, the governing body shall: |
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(1) file the budget with the municipal clerk; and |
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(2) if the municipality maintains an Internet website, |
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take action to ensure that: |
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(A) a copy of the budget, including any required |
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cover page, is posted on the website; and |
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(B) the record votes described by this section |
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and Section 102.007(d)(2) are posted on the website at least until |
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the first anniversary of the date the budget is adopted. |
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(b) The governing body shall take action to ensure that the |
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cover page of the budget is amended to include the record vote of |
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each member of the governing body by name following a vote on: |
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(1) the ratification of the property tax increase |
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under Section 102.007(c), if the information is not included on the |
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cover page; and |
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(2) the setting of the property tax rate for the |
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current fiscal year, if the information is not included on the cover |
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page. |
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SECTION 3. Section 111.008, Local Government Code, is |
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amended by amending Subsections (a) and (c) and adding Subsection |
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(d) to read as follows: |
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(a) At the conclusion of the public hearing, the |
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commissioners court shall take action on the proposed budget. A |
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vote to adopt the budget must be a record vote. |
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(c) Adoption of a budget that will require raising more |
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|
revenue from property taxes than in the previous year requires a |
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separate record vote of the commissioners court to ratify the |
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|
property tax increase reflected in the budget. A record vote under |
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|
this subsection is in addition to and separate from the record vote |
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|
to adopt the budget or a record vote to set the tax rate required by |
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|
Chapter 26, Tax Code, or other law. |
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(d) An adopted budget that will require raising more revenue |
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from property taxes than in the previous year must contain a cover |
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page that includes: |
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(1) the following statement in 18-point or larger |
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type: "This budget will raise more total property taxes than last |
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|
year's budget by (insert total dollar amount of increase and |
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|
percentage increase), and of that amount (insert amount computed by |
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|
multiplying the proposed tax rate by the value of new property added |
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to the roll) is tax revenue to be raised from new property added to |
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the tax roll this year."; |
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(2) the record vote of each member of the |
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commissioners court by name voting on: |
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(A) the adoption of the budget; |
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(B) the ratification of the property tax increase |
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under Subsection (c), if the vote has been taken; and |
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(C) the setting of the property tax rate for the |
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|
current fiscal year, if the vote has been taken; |
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(3) the county property tax rates for the preceding |
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and current fiscal years, including: |
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(A) the adopted property tax rate; |
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(B) the effective tax rate; |
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(C) the effective maintenance and operations tax |
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rate; |
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(D) the rollback tax rate; and |
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(E) the debt rate; and |
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(4) the total amount of bonds and other debt |
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obligations owed by the county. |
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SECTION 4. Section 111.009, Local Government Code, is |
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amended to read as follows: |
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Sec. 111.009. APPROVED BUDGET FILED WITH COUNTY CLERK: |
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POSTING ON INTERNET. (a) On final approval of the budget by the |
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commissioners court, the court shall: |
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(1) file the budget with the county clerk; and |
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(2) if the county maintains an Internet website, take |
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action to ensure that: |
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(A) a copy of the budget, including any required |
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cover page, is posted on the website; and |
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(B) the record votes described by this section |
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and Section 111.008(d)(2) are posted on the website at least until |
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the first anniversary of the date the budget is adopted. |
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(b) The commissioners court shall take action to ensure that |
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the cover page of the budget is amended to include the record vote |
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of each member of the court by name following a vote on: |
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(1) the ratification of the property tax increase |
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under Section 111.008(c), if the information is not included on the |
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cover page; and |
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(2) the setting of the property tax rate for the |
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current fiscal year, if the information is not included on the cover |
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page. |
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SECTION 5. Section 111.039, Local Government Code, is |
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amended by amending Subsections (a) and (c) and adding Subsection |
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(d) to read as follows: |
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(a) At the conclusion of the public hearing, the |
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commissioners court shall take action on the proposed budget. A |
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vote to adopt the budget must be a record vote. |
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|
(c) Adoption of a budget that will require raising more |
|
|
revenue from property taxes than in the previous year requires a |
|
|
separate record vote of the commissioners court to ratify the |
|
|
property tax increase reflected in the budget. A record vote under |
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|
this subsection is in addition to and separate from the record vote |
|
|
to adopt the budget or a record vote to set the tax rate required by |
|
|
Chapter 26, Tax Code, or other law. |
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|
(d) An adopted budget that will require raising more revenue |
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|
from property taxes than in the previous year must contain a cover |
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|
page that includes: |
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|
(1) the following statement in 18-point or larger |
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|
type: "This budget will raise more total property taxes than last |
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|
year's budget by (insert total dollar amount of increase and |
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|
percentage increase), and of that amount (insert amount computed by |
|
|
multiplying the proposed tax rate by the value of new property added |
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|
to the roll) is tax revenue to be raised from new property added to |
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the tax roll this year."; |
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(2) the record vote of each member of the |
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commissioners court by name voting on: |
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(A) the adoption of the budget; |
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(B) the ratification of the property tax increase |
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under Subsection (c), if the vote has been taken; and |
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(C) the setting of the property tax rate for the |
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|
current fiscal year, if the vote has been taken; |
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(3) the county property tax rates for the preceding |
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and current fiscal years, including: |
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(A) the adopted property tax rate; |
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(B) the effective tax rate; |
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(C) the effective maintenance and operations tax |
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|
rate; |
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(D) the rollback tax rate; and |
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(E) the debt rate; and |
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(4) the total amount of bonds and other debt |
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obligations owed by the county. |
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SECTION 6. Section 111.040, Local Government Code, is |
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amended to read as follows: |
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Sec. 111.040. APPROVED BUDGET FILED WITH OFFICERS: POSTING |
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ON INTERNET. (a) On final approval of the budget by the |
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commissioners court, the court shall: |
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(1) file a copy of the budget with the county auditor |
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and the county clerk; and |
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(2) if the county maintains an Internet website, take |
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|
action to ensure that: |
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(A) a copy of the budget, including any required |
|
|
cover page, is posted on the website; and |
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|
(B) the record votes described by this section |
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|
and Section 111.039(d)(2) are posted on the website at least until |
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the first anniversary of the date the budget is adopted. |
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(b) The commissioners court shall take action to ensure that |
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the cover page of the budget is amended to include the record vote |
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of each member of the court by name following a vote on: |
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(1) the ratification of the property tax increase |
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under Section 111.039(c), if the information is not included on the |
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cover page; and |
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(2) the setting of the property tax rate for the |
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current fiscal year, if the information is not included on the cover |
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page. |
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SECTION 7. Section 111.068, Local Government Code, is |
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amended by amending Subsection (a) and adding Subsections (c) and |
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(d) to read as follows: |
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(a) At the conclusion of the public hearing, the |
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commissioners court shall take action on the proposed budget. A |
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vote to adopt the budget must be a record vote. |
|
|
(c) Adoption of a budget that will require raising more |
|
|
revenue from property taxes than in the previous year requires a |
|
|
separate record vote of the commissioners court to ratify the |
|
|
property tax increase reflected in the budget. A record vote under |
|
|
this subsection is in addition to and separate from the record vote |
|
|
to adopt the budget or a record vote to set the tax rate required by |
|
|
Chapter 26, Tax Code, or other law. |
|
|
(d) An adopted budget that will require raising more revenue |
|
|
from property taxes than in the previous year must contain a cover |
|
|
page that includes: |
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|
(1) the following statement in 18-point or larger |
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|
type: "This budget will raise more total property taxes than last |
|
|
year's budget by (insert total dollar amount of increase and |
|
|
percentage increase), and of that amount (insert amount computed by |
|
|
multiplying the proposed tax rate by the value of new property added |
|
|
to the roll) is tax revenue to be raised from new property added to |
|
|
the tax roll this year."; |
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|
(2) the record vote of each member of the |
|
|
commissioners court by name voting on: |
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|
(A) the adoption of the budget; |
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|
(B) the ratification of the property tax increase |
|
|
under Subsection (c), if the vote has been taken; and |
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(C) the setting of the property tax rate for the |
|
|
current fiscal year, if the vote has been taken; |
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(3) the county property tax rates for the preceding |
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|
and current fiscal years, including: |
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|
(A) the adopted property tax rate; |
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(B) the effective tax rate; |
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(C) the effective maintenance and operations tax |
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|
rate; |
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(D) the rollback tax rate; and |
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(E) the debt rate; and |
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(4) the total amount of bonds and other debt |
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|
obligations owed by the county. |
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SECTION 8. Section 111.069, Local Government Code, is |
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amended to read as follows: |
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Sec. 111.069. APPROVED BUDGET FILED WITH OFFICERS; POSTING |
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ON INTERNET. (a) On final approval of the budget by the |
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commissioners court, the court shall: |
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(1) file a copy of the budget with the county auditor |
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|
and the county clerk; and |
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(2) if the county maintains an Internet website, take |
|
|
action to ensure that: |
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(A) a copy of the budget, including any required |
|
|
cover page, is posted on the website; and |
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|
(B) the record votes described by this section |
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and Section 111.068(d)(2) are posted on the website at least until |
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the first anniversary of the date the budget is adopted. |
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(b) The commissioners court shall take action to ensure that |
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the cover page of the budget is amended to include the record vote |
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of each member of the court by name following a vote on: |
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(1) the ratification of the property tax increase |
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under Section 111.068(c), if the information is not included on the |
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cover page; and |
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(2) the setting of the property tax rate for the |
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current fiscal year, if the information is not included on the cover |
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page. |
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SECTION 9. Section 26.05(b), Tax Code, is amended to read as |
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follows: |
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(b) A taxing unit may not impose property taxes in any year |
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until the governing body has adopted a tax rate for that year, and |
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the annual tax rate must be set by ordinance, resolution, or order, |
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depending on the method prescribed by law for adoption of a law by |
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the governing body. The vote on the ordinance, resolution, or order |
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setting the tax rate must be separate from the vote adopting the |
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budget. The vote on the ordinance, resolution, or order setting a |
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tax rate [that exceeds the effective tax rate] must be a record |
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vote. A motion to adopt an ordinance, resolution, or order setting |
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a tax rate that exceeds the effective tax rate must be made in the |
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following form: "I move that the property tax rate be increased by |
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the adoption of a tax rate of (specify tax rate), which is |
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effectively a (insert percentage by which the proposed tax rate |
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exceeds the effective tax rate) percent increase in the tax rate." |
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If the ordinance, resolution, or order sets a tax rate that, if |
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applied to the total taxable value, will impose an amount of taxes |
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to fund maintenance and operation expenditures of the taxing unit |
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that exceeds the amount of taxes imposed for that purpose in the |
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preceding year, the taxing unit must: |
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(1) include in the ordinance, resolution, or order in |
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type larger than the type used in any other portion of the document: |
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(A) the following statement: "THIS TAX RATE WILL |
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RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S |
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TAX RATE."; and |
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(B) if the tax rate exceeds the effective |
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maintenance and operations rate, the following statement: "THE TAX |
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RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
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TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) |
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PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A |
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$100,000 HOME BY APPROXIMATELY $(Insert amount)."; and |
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(2) include on the home page of any Internet website |
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operated by the unit: |
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(A) the following statement: "(Insert name of |
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unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE |
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AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and |
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(B) if the tax rate exceeds the effective |
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maintenance and operations rate, the following statement: "THE TAX |
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RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
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TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) |
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PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A |
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$100,000 HOME BY APPROXIMATELY $(Insert amount)." |
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SECTION 10. This Act applies only to a budget adopted, or a |
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vote taken on a fiscal matter, for a fiscal year beginning on or |
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after the effective date of this Act. A budget adopted, or a vote |
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taken on a fiscal matter, for a fiscal year beginning before the |
|
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effective date of this Act is governed by the law in effect when the |
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budget was adopted or the vote was taken, and that law is continued |
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in effect for that purpose. |
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SECTION 11. This Act takes effect September 1, 2013. |