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A BILL TO BE ENTITLED
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AN ACT
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relating to the definition of new property value for purposes of the |
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calculation of certain ad valorem tax rates for a county. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.012(17), Tax Code, is amended to read |
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as follows: |
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(17) "New property value" means: |
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(A) the total taxable value of property added to |
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the appraisal roll in the current year by annexation and |
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improvements listed on the appraisal roll that were made after |
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January 1 of the preceding tax year, including personal property |
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located in new improvements that was brought into the unit after |
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January 1 of the preceding tax year; |
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(B) property value that is included in the |
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current total value for the tax year succeeding a tax year in which |
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any portion of the value of the property was excluded from the total |
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value because of the application of a tax abatement agreement to all |
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or a portion of the property, less the value of the property that |
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was included in the total value for the preceding tax year; [and] |
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(C) for purposes of an entity created under |
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Section 52, Article III, or Section 59, Article XVI, Texas |
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Constitution, property value that is included in the current total |
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value for the tax year succeeding a tax year in which the following |
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occurs: |
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(i) the subdivision of land by plat; |
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(ii) the installation of water, sewer, or |
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drainage lines; or |
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(iii) the paving of undeveloped land; and |
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(D) if approved by the voters in an election held |
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as provided by Section 140.008, Local Government Code, for purposes |
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of a county or a hospital district, the increase in total taxable |
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value of real property interests in oil or gas in place listed on |
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the appraisal roll in the current year attributable to the |
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production of oil or gas from wells completed after January 1 of the |
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preceding year. |
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SECTION 2. Chapter 140, Local Government Code, is amended |
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by adding Section 140.008 to read as follows: |
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Sec. 140.008. ELECTION TO TREAT INCREASE IN TAXABLE VALUE |
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OF OIL AND GAS INTERESTS AS NEW PROPERTY VALUE FOR AD VALOREM TAX |
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RATE CALCULATIONS. (a) In this section, "eligible taxing unit" |
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means a county or a hospital district that is authorized to impose |
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and is imposing ad valorem taxes on property. |
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(b) The governing body of an eligible taxing unit may call |
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an election to determine whether to treat the increase in total |
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taxable value of real property interests in oil and gas in place |
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listed on the appraisal roll in the current year attributable to the |
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production of oil and gas from wells completed after January 1 of |
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the preceding tax year as new property value for the purpose of |
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calculating the effective tax rate of the taxing unit. |
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(c) The governing body of an eligible taxing unit shall call |
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an election described by Subsection (b) if the qualified voters of |
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the taxing unit file a petition requesting the election with the |
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governing body that is signed by a number of qualified voters of the |
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taxing unit that is equal to at least five percent of the number of |
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votes cast in the taxing unit in the most recent gubernatorial |
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election. |
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(d) Not later than the 30th day after the date the governing |
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body receives a petition filed under Subsection (c), the governing |
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body shall determine whether the petition is valid and enter a |
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resolution stating its finding. If the governing body fails to act |
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within the time allowed, the petition is treated as if it had been |
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found valid. |
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(e) If the governing body finds that the petition is valid, |
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or fails to act within the time allowed, the governing body shall |
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order an election to be held in the eligible taxing unit not later |
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than the 90th day after the date on which the governing body |
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received the petition. Section 41.001(a), Election Code, does not |
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apply to an election held under this section. |
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(f) At the election, the ballots shall be printed to permit |
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voting for or against the proposition: "Treating the increase in |
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the taxable value of real property interests in oil and gas in place |
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that is attributable to the production of oil and gas from new wells |
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as new property value for the purpose of calculating the effective |
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tax rate of (name of eligible taxing unit)." |
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(g) If a majority of the votes cast in the election favor the |
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proposition, the proposition is approved and the taxing unit shall |
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calculate its new property value as provided by Section |
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26.012(17)(D), Tax Code, for each tax year that begins after the |
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date the election results are certified. |
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(h) The revenue received by an eligible taxing unit |
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attributable to the calculation of new property value as provided |
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by Section 26.012(17)(D), Tax Code, must be placed in a special |
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account in the general fund of the taxing unit and may be used only |
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for: |
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(1) road construction and repair within the boundaries |
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of the taxing unit; and |
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(2) providing indigent health care within the |
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boundaries of the taxing unit. |
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SECTION 3. This Act applies to the calculation of certain ad |
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valorem tax rates for a county only for a tax year beginning on or |
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after the effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2014. |