84R1734 SMH-F
 
  By: Faircloth H.B. No. 2432
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the procedure for the adoption of an ad valorem tax rate
  by certain special districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 26.05(a), Tax Code, is amended to read as
  follows:
         (a)  The governing body of each taxing unit, before the later
  of September 30 or the 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)  for a taxing unit other than a school district, the
  rate that, if applied to the total taxable value, will impose the
  total amount calculated [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, for a school district, the rate
  calculated 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.
         SECTION 2.  Section 49.107(g), Water Code, is amended to
  read as follows:
         (g)  Except as provided by Section 49.236 of this code, 
  Sections 26.04(c)-(j), 26.05(b), (c), (d), and (e) [26.04, 26.05],
  and 26.07, Tax Code, do not apply to a tax levied and collected
  under this section or an ad valorem tax levied and collected for the
  payment of the interest on and principal of bonds issued by a
  district.
         SECTION 3.  Section 49.108(f), Water Code, is amended to
  read as follows:
         (f)  Except as provided by Section 49.236 of this code, 
  Sections 26.04(c)-(j), 26.05(b), (c), (d), and (e) [26.04, 26.05],
  and 26.07, Tax Code, do not apply to a tax levied and collected for
  payments made under a contract approved in accordance with this
  section.
         SECTION 4.  Sections 49.236(a) and (d), Water Code, as added
  by Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular
  Session, 2003, are amended 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 TAXPAYERS' RIGHT TO ROLLBACK ELECTION
         "If operation and maintenance taxes on the average residence
  homestead increase by more than eight percent, the qualified voters
  of the district by petition may require that an election be held to
  determine whether to reduce the combined debt service, operation
  and maintenance, and contract 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 be held to determine whether
  or not to reduce the tax rate adopted for the current year to the
  rollback tax rate in accordance with the procedures provided by
  Sections 26.07(b)-(g) and 26.081, Tax Code. For purposes of
  Sections 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.
         SECTION 5.  Section 8876.152(b), Special District Local Laws
  Code, is amended to read as follows:
         (b)  Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
  Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
  78th Legislature, Regular Session, 2003, applies] to the district.
         SECTION 6.  Section 49.236, Water Code, as added by Chapter
  248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
  2003, is repealed.
         SECTION 7.  (a) The change in law made by this Act applies to
  the ad valorem tax rate of a district as defined by Section 49.001,
  Water Code, beginning with the 2015 tax year, except as provided by
  Subsection (b) of this section.
         (b)  If the governing body of a district adopted an ad
  valorem tax rate for the district for the 2015 tax year before the
  effective date of this Act, the change in law made by this Act
  applies to the ad valorem tax rate of that district beginning with
  the 2016 tax year, and the law in effect when the tax rate was
  adopted applies to the 2015 tax year with respect to that district.
         SECTION 8.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.