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SECTION 2. Section 26.04, Tax
Code, is amended by adding Subsection (b-1) and amending Subsection (c) to
read as follows:
(b-1) By August 1 or as
soon thereafter as practicable, the comptroller shall determine the
inflation rate for the current year and publish the rate in the Texas
Register.
(c) An officer or employee
designated by the governing body shall calculate the effective 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) "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 + INFLATION RATE) [1.08])
+ CURRENT DEBT RATE
No
equivalent provision.
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SECTION 1. Section 26.04, Tax
Code, is amended by amending Subsection (c) and adding Subsection (c-1) to
read as follows:
No
equivalent provision.
(c) An officer or employee
designated by the governing body shall calculate the effective 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) "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 1.06 [1.08])
+ CURRENT DEBT RATE
(c-1) Notwithstanding any
other provision of this section, the governing body may direct the
designated officer or employee to substitute "1.08" for
"1.06" in the calculation of the rollback tax rate if any part of
the taxing unit is located in an area declared a disaster area during the
current tax year by the governor or by the president of the United States.
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SECTION 3. Sections
26.041(a), (b), and (c), 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 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
and
ROLLBACK TAX RATE =
(EFFECTIVE MAINTENANCE AND OPERATIONS RATE x (1 + INFLATION RATE) [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.
(b) Except as provided by
Subsections (a) and (c) [of this section], in a year in which a
taxing unit imposes an additional sales and use tax the rollback tax rate
for the unit is calculated according to the following formula, regardless
of whether the unit levied a property tax in the preceding year:
ROLLBACK TAX RATE =
[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x (1 + INFLATION RATE) [1.08]) / ([TOTAL] CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)
where "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, and "sales tax revenue 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 current 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 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
and
ROLLBACK TAX RATE = [(LAST
YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x (1 + INFLATION RATE) [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.
No
equivalent provision.
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SECTION 2. Section 26.041,
Tax Code, is amended by amending Subsections (a), (b), and (c) and adding
Subsection (c-1) 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 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
and
ROLLBACK TAX RATE =
(EFFECTIVE MAINTENANCE AND OPERATIONS RATE x 1.06 [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.
(b) Except as provided by
Subsections (a) and (c) [of this section], in a year in which a
taxing unit imposes an additional sales and use tax the rollback tax rate
for the unit is calculated according to the following formula, regardless
of whether the unit levied a property tax in the preceding year:
ROLLBACK TAX RATE =
[(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.06 [1.08])
/ ([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
(CURRENT DEBT RATE - SALES TAX REVENUE RATE)
where "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, and "sales tax revenue 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 current 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 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
and
ROLLBACK TAX RATE = [(LAST
YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.06 [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.
(c-1) Notwithstanding any
other provision of this section, the governing body may direct the
designated officer or employee to substitute "1.08" for
"1.06" in the calculation of the rollback tax rate if any part of
the taxing unit is located in an area declared a disaster area during the
current tax year by the governor or by the president of the United States.
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SECTION 16. Section 49.236,
Water Code, as added by Chapter 335 (S.B. 392), Acts of the 78th
Legislature, Regular Session, 2003, is amended by amending Subsections (a)
and (d) and adding Subsection (e) to read as follows:
(a) Before the board adopts
an ad valorem tax rate for the district for debt service, operation and
maintenance purposes, or contract purposes, the board shall give notice of
each meeting of the board at which the adoption of a tax rate will be
considered. The notice must:
(1) contain a statement in
substantially the following form:
"NOTICE OF PUBLIC
HEARING ON TAX RATE
"The (name of the
district) will hold a public hearing on a proposed tax rate for the tax
year (year of tax levy) on (date and time) at (meeting place). Your
individual taxes may increase or 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.
"(Names of all board
members and, if a vote was taken, an indication of how each voted on the
proposed tax rate and an indication of any absences.)";
(2) contain the following
information:
(A) the district's total
adopted tax rate for the preceding year and the proposed tax rate,
expressed as an amount per $100;
(B) the difference, expressed
as an amount per $100 and as a percent increase or decrease, as applicable,
in the proposed tax rate compared to the adopted tax rate for the preceding
year;
(C) the average appraised
value of a residence homestead in the district in the preceding year and in
the current year; the district's total homestead exemption, other than an
exemption available only to disabled persons or persons 65 years of age or
older, applicable to that appraised value in each of those years; and the
average taxable value of a residence homestead in the district in each of
those years, disregarding any homestead exemption available only to
disabled persons or persons 65 years of age or older;
(D) the amount of tax that
would have been imposed by the district in the preceding year on a
residence homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption available only
to disabled persons or persons 65 years of age or older;
(E) the amount of tax that
would be imposed by the district in the current year on a residence
homestead appraised at the average appraised value of a residence homestead
in that year, disregarding any homestead exemption available only to
disabled persons or persons 65 years of age or older, if the proposed tax
rate is adopted; and
(F) the difference between
the amounts of tax calculated under Paragraphs (D) and (E), expressed in
dollars and cents and described as the annual percentage increase or
decrease, as applicable, in the tax to be imposed by the district on the
average residence homestead in the district in the current year if the
proposed tax rate is adopted; and
(3) contain a statement in
substantially the following form:
"NOTICE OF VOTE ON
TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
"If operation and
maintenance taxes on the average residence homestead increase by more
than the inflation rate, [eight percent, the qualified
voters of the district by petition may require that] an election must
be held to determine whether to ratify [reduce] the operation
and maintenance tax rate [to the rollback tax rate] under Section
49.236(d), Water Code."
(d) If the governing body of
a district adopts a combined debt service, operation and maintenance, and
contract tax rate that exceeds the rollback tax rate, [would
impose more than 1.08 times the amount of tax imposed by the district in
the preceding year on a residence homestead appraised at the average
appraised value of a residence homestead in the district in that year, disregarding
any homestead exemption available only to disabled persons or persons 65
years of age or older, the qualified voters of the district by petition may
require that] an election must be held to determine whether [or
not] to ratify [reduce] the tax rate adopted for the
current year [to the rollback tax rate] in accordance with the
procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and
26.081], Tax Code. For purposes of Sections 26.08(b)-(d) [26.07(b)-(g)]
and this subsection, the rollback tax rate is the sum of the following
tax rates:
(1) the current year's
debt service tax rate;
(2) the current year's
[and] contract tax rate; and
(3) [rates plus]
the operation and maintenance tax rate that would impose [1.08 times] the amount of the
operation and maintenance tax imposed by the district in the preceding year
on a residence homestead appraised at the average appraised value of a
residence homestead in the district in that year, disregarding any
homestead exemption available only to disabled persons or persons 65 years
of age or older, multiplied by the sum
of one and the inflation rate.
(e) In this section,
"inflation rate" means the rate determined by the comptroller and
published in the Texas Register as provided by Section 26.04(b-1), Tax Code.
No
equivalent provision.
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SECTION 15. Section 49.236,
Water Code, as added by Chapter 335 (S.B. 392), Acts of the 78th
Legislature, Regular Session, 2003, is amended by amending Subsections (a)
and (d) and adding Subsection (e) to read as follows:
(a) Before the board adopts
an ad valorem tax rate for the district for debt service, operation and
maintenance purposes, or contract purposes, the board shall give notice of
each meeting of the board at which the adoption of a tax rate will be
considered. The notice must:
(1) contain a statement in
substantially the following form:
"NOTICE OF PUBLIC
HEARING ON TAX RATE
"The (name of the
district) will hold a public hearing on a proposed tax rate for the tax
year (year of tax levy) on (date and time) at (meeting place). Your
individual taxes may increase or 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.
"(Names of all board
members and, if a vote was taken, an indication of how each voted on the
proposed tax rate and an indication of any absences.)";
(2) contain the following
information:
(A) the district's total
adopted tax rate for the preceding year and the proposed tax rate,
expressed as an amount per $100;
(B) the difference, expressed
as an amount per $100 and as a percent increase or decrease, as applicable,
in the proposed tax rate compared to the adopted tax rate for the preceding
year;
(C) the average appraised
value of a residence homestead in the district in the preceding year and in
the current year; the district's total homestead exemption, other than an
exemption available only to disabled persons or persons 65 years of age or
older, applicable to that appraised value in each of those years; and the
average taxable value of a residence homestead in the district in each of
those years, disregarding any homestead exemption available only to
disabled persons or persons 65 years of age or older;
(D) the amount of tax that
would have been imposed by the district in the preceding year on a
residence homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption available only
to disabled persons or persons 65 years of age or older;
(E) the amount of tax that
would be imposed by the district in the current year on a residence
homestead appraised at the average appraised value of a residence homestead
in that year, disregarding any homestead exemption available only to disabled
persons or persons 65 years of age or older, if the proposed tax rate is
adopted; and
(F) the difference between
the amounts of tax calculated under Paragraphs (D) and (E), expressed in
dollars and cents and described as the annual percentage increase or
decrease, as applicable, in the tax to be imposed by the district on the
average residence homestead in the district in the current year if the
proposed tax rate is adopted; and
(3) contain a statement in
substantially the following form:
"NOTICE OF VOTE ON
TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
"If operation and
maintenance taxes on the average residence homestead increase by more
than six [eight] percent, [the qualified
voters of the district by petition may require that] an election must
be held to determine whether to ratify [reduce] the operation
and maintenance tax rate [to the rollback tax rate] under Section
49.236(d), Water Code."
(d) If the governing body of
a district adopts a combined debt service, operation and maintenance, and
contract tax rate that exceeds the rollback tax rate, [would
impose more than 1.08 times the amount of tax imposed by the district in
the preceding year on a residence homestead appraised at the average
appraised value of a residence homestead in the district in that year,
disregarding any homestead exemption available only to disabled persons or
persons 65 years of age or older, the qualified voters of the district by
petition may require that] an election must be held to determine
whether [or not] to ratify [reduce] the tax rate
adopted for the current year [to the rollback tax rate] in
accordance with the procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g)
and 26.081], Tax Code. For purposes of Sections 26.08(b)-(d) [26.07(b)-(g)]
and this subsection, the rollback tax rate is the sum of the following
tax rates:
(1) the current year's
debt service tax rate;
(2) the current year's
[and] contract tax rate; and
(3) [rates plus]
the operation and maintenance tax rate that would impose 1.06 [1.08]
times the amount of the operation and maintenance tax imposed by the
district in the preceding year on a residence homestead appraised at the
average appraised value of a residence homestead in the district in that
year, disregarding any homestead exemption available only to disabled
persons or persons 65 years of age or older.
No
equivalent provision.
(e) Notwithstanding any
other provision of this section, the board may substitute "eight
percent" for "six percent" in Subsection (a) and
"1.08" for "1.06" in Subsection (d) if any part of the
district is located in an area declared a disaster area during the current
tax year by the governor or by the president of the United States.
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