84R12182 SMH-D
 
  By: Elkins H.B. No. 3614
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the procedure for the adoption of an ad valorem tax rate
  by a taxing unit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 26.01(d), Tax Code, is amended to read as
  follows:
         (d)  The chief appraiser shall prepare and certify to the
  assessor for each taxing unit a list of those properties of which
  the chief appraiser has knowledge that are reasonably likely to be
  taxable by that unit but that are not included on the appraisal roll
  certified to the assessor under Subsection (a) or included on the
  listing certified to the assessor under Subsection (c). The chief
  appraiser shall include on the list for each property the market
  value, appraised value, and kind and amount of any partial
  exemptions as determined by the appraisal district for the
  preceding year and a reasonable estimate of the market value,
  appraised value, and kind and amount of any partial exemptions for
  the current year. Until the property is added to the appraisal
  roll, the assessor for the taxing unit shall include each property
  on the list in the calculations prescribed by Sections 26.04 and
  26.041[, and for that purpose shall use the lower market value,
  appraised value, or taxable value, as appropriate, included on or
  computed using the information included on the list for the
  property].
         SECTION 2.  Sections 26.04(e) and (e-1), Tax Code, are
  amended to read as follows:
         (e)  By August 7 or as soon thereafter as practicable, the
  designated officer or employee shall submit the rates to the
  governing body. The designated officer or employee [He] shall
  deliver by mail to each property owner in the unit or publish in a
  newspaper in the form prescribed by the comptroller:
               (1)  the effective tax rate, the rollback tax rate, and
  an explanation of how they were calculated;
               (2)  the effective tax rate and the rollback tax rate
  calculated without regard to Section 26.03;
               (3)  the difference between the amount of taxes that
  would be imposed by the unit if the unit were to adopt a tax rate
  equal to the effective tax rate as calculated with regard to Section
  26.03 and the amount of taxes that would be imposed by the unit if
  the unit were to adopt a tax rate equal to the effective tax rate
  calculated without regard to that section;
               (4)  the estimated amount of interest and sinking fund
  balances and the estimated amount of maintenance and operation or
  general fund balances remaining at the end of the current fiscal
  year that are not encumbered with or by corresponding existing debt
  obligation;
               (5) [(3)]  a schedule of the unit's debt obligations
  showing:
                     (A)  the amount of principal and interest that
  will be paid to service the unit's debts in the next year from
  property tax revenue, including payments of lawfully incurred
  contractual obligations providing security for the payment of the
  principal of and interest on bonds and other evidences of
  indebtedness issued on behalf of the unit by another political
  subdivision and, if the unit is created under Section 52, Article
  III, or Section 59, Article XVI, Texas Constitution, payments on
  debts that the unit anticipates to incur in the next calendar year;
                     (B)  the amount by which taxes imposed for debt
  are to be increased because of the unit's anticipated collection
  rate; [and]
                     (C)  the total of the amounts listed in Paragraphs
  (A)-(B), less any amount collected in excess of the previous year's
  anticipated collections certified as provided in Subsection (b);
                     (D)  the amount of the debt that was not approved
  by the voters;
                     (E)  the percentage of the debt that was not
  approved by the voters;
                     (F)  the amount of the debt service for the next
  year that is for debt that was not approved by the voters; and
                     (G)  the percentage of the debt service for the
  next year that is for debt that was not approved by the voters;
               (6) [(4)]  the amount of additional sales and use tax
  revenue anticipated in calculations under Section 26.041;
               (7) [(5)]  a statement that the adoption of a tax rate
  equal to the effective tax rate would result in an increase or
  decrease, as applicable, in the amount of taxes imposed by the unit
  as compared to last year's levy, and the amount of the increase or
  decrease;
               (8) [(6)]  in the year that a taxing unit calculates an
  adjustment under Subsection (i) or (j), a schedule that includes
  the following elements:
                     (A)  the name of the unit discontinuing the
  department, function, or activity;
                     (B)  the amount of property tax revenue spent by
  the unit listed under Paragraph (A) to operate the discontinued
  department, function, or activity in the 12 months preceding the
  month in which the calculations required by this chapter are made;
  and
                     (C)  the name of the unit that operates a distinct
  department, function, or activity in all or a majority of the
  territory of a taxing unit that has discontinued operating the
  distinct department, function, or activity; and
               (9) [(7)]  in the year following the year in which a
  taxing unit raised its rollback rate as required by Subsection (j),
  a schedule that includes the following elements:
                     (A)  the amount of property tax revenue spent by
  the unit to operate the department, function, or activity for which
  the taxing unit raised the rollback rate as required by Subsection
  (j) for the 12 months preceding the month in which the calculations
  required by this chapter are made; and
                     (B)  the amount published by the unit in the
  preceding tax year under Subdivision (8)(B) [(6)(B)].
         (e-1)  The notice requirements imposed by Subsections
  (e)(1)-(8) [(e)(1)-(6)] do not apply to a school district.
         SECTION 3.  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 published under Section 26.04(e)(5)(C)
  [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 4.  The heading to Section 140.010, Local Government
  Code, is amended to read as follows:
         Sec. 140.010.  PROPOSED PROPERTY TAX RATE NOTICE FOR CERTAIN
  TAXING UNITS [COUNTIES AND MUNICIPALITIES].
         SECTION 5.  Section 140.010, Local Government Code, is
  amended by amending Subsections (a), (b), (c), (d), (e), (f), and
  (h) and adding Subsection (a-1) to read as follows:
         (a)  In this section:
               (1)  "Effective [, "effective] tax rate" and "rollback
  tax rate" mean the effective tax rate and rollback tax rate of a
  taxing unit [county or municipality, as applicable,] as calculated
  under Chapter 26, Tax Code.
               (2)  "Taxing unit" has the meaning assigned by Section
  1.04, Tax Code.
         (a-1)  This section applies to a taxing unit other than:
               (1)  a school district; or
               (2)  a district to which Section 49.236, Water Code,
  applies.
         (b)  Except as provided by this subsection, each taxing unit
  [county and municipality] shall provide notice of the taxing unit's
  [county's or municipality's] proposed property tax rate in the
  manner provided by this section.  A taxing unit [county or
  municipality] to which Section 26.052, Tax Code, applies may
  provide notice of the taxing unit's [county's or municipality's]
  proposed property tax rate in the manner provided by this section or
  in the manner provided by Section 26.052, Tax Code.
         (c)  A taxing unit [county or municipality] that provides
  notice of the taxing unit's [county's or municipality's] proposed
  property tax rate in the manner provided by this section is exempt
  from the notice and publication requirements of  Sections
  26.04(e), 26.052, and 26.06, Tax Code, as applicable, and is not
  subject to an injunction for failure to comply with those
  requirements.
         (d)  A taxing unit [county or municipality] that proposes a
  property tax rate that does not exceed the lower of the effective
  tax rate or the rollback tax rate shall provide the following
  notice:
  "NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
  RATE FOR (INSERT NAME OF TAXING UNIT [COUNTY OR MUNICIPALITY])
  "A tax rate of $______ per $100 valuation has been proposed by the
  governing body of (insert name of taxing unit [county or
  municipality]).
         PROPOSED TAX RATE          $______ per $100
         PRECEDING YEAR'S TAX RATE   $______ per $100
         EFFECTIVE TAX RATE          $______ per $100
  "The effective tax rate is the total tax rate needed to raise the
  same amount of property tax revenue for (insert name of taxing unit
  [county or municipality]) from the same properties in both the
  (insert preceding tax year) tax year and the (insert current tax
  year) tax year.
  "YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
  FOLLOWS:
  property tax amount = (rate) x (taxable value of your property) /
  100
  "For assistance or detailed information about tax calculations,
  please contact:
         (insert name of [county or municipal] tax assessor-collector
  for taxing unit)
         (insert name of taxing unit [county or municipality]) tax
  assessor-collector
         (insert address)
         (insert telephone number)
         (insert e-mail address)
         (insert Internet website address, if applicable)"
         (e)  A taxing unit [county or municipality] that proposes a
  property tax rate that exceeds the lower of the effective tax rate
  or the rollback tax rate shall provide the following notice:
  "NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
  RATE FOR (INSERT NAME OF TAXING UNIT [COUNTY OR MUNICIPALITY])
  "A tax rate of $_____ per $100 valuation has been proposed for
  adoption by the governing body of (insert name of taxing unit
  [county or municipality]).  This rate exceeds the lower of the
  effective or rollback tax rate, and state law requires that two
  public hearings be held by the governing body before adopting the
  proposed tax rate.
         PROPOSED TAX RATE           $______ per $100
         PRECEDING YEAR'S TAX RATE   $______ per $100
         EFFECTIVE TAX RATE          $______ per $100
         ROLLBACK TAX RATE          $______ per $100
  "The effective tax rate is the total tax rate needed to raise the
  same amount of property tax revenue for (insert name of taxing unit
  [county or municipality]) from the same properties in both the
  (insert preceding tax year) tax year and the (insert current tax
  year) tax year.
  "The rollback tax rate is the highest tax rate that (insert name of
  taxing unit [county or municipality]) may adopt before voters are
  entitled to petition for an election to limit the rate that may be
  approved to the rollback rate.
  "YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
  FOLLOWS:
  property tax amount = (rate) x (taxable value of your property) /
  100
  "For assistance or detailed information about tax calculations,
  please contact:
         (insert name of [county or municipal] tax assessor-collector
  for taxing unit)
         (insert name of taxing unit [county or municipality]) tax
  assessor-collector
         (insert address)
         (insert telephone number)
         (insert e-mail address)
         (insert Internet website address, if applicable)
  "You are urged to attend and express your views at the following
  public hearings on the proposed tax rate:
         First Hearing:  (insert date and time) at (insert location of
  meeting).
         Second Hearing:  (insert date and time) at (insert location
  of meeting)."
         (f)  A taxing unit [county or municipality] shall:
               (1)  provide the notice required by Subsection (d) or
  (e), as applicable, not later than the later of September 1 or the
  30th day after the date the certified appraisal roll is received by
  the taxing unit by:
                     (A)  publishing the notice in a newspaper having
  general circulation in:
                           (i)  the county, in the case of notice
  published by a county; or
                           (ii)  the county in which the taxing unit
  [municipality] is located or primarily located, in the case of
  notice published by a taxing unit other than a county
  [municipality]; or
                     (B)  mailing the notice to each property owner
  in[:
                           [(i)]  the taxing unit [county, in the case
  of notice provided by a county; or
                           [(ii)     the municipality, in the case of
  notice provided by a municipality]; and
               (2)  post the notice on the Internet website of the
  taxing unit [county or municipality], if applicable, beginning not
  later than the later of September 1 or the 30th day after the date
  the certified appraisal roll is received by the taxing unit and
  continuing until the taxing unit [county or municipality] adopts a
  tax rate.
         (h)  A taxing unit [county or municipality] that provides
  notice under this section shall on request provide any information
  described by Sections 26.04(e)(1)-(9) [26.04(e)(1)-(7)], Tax Code,
  regarding the taxing unit [county or municipality, as applicable].
         SECTION 6.  (a) The change in law made by this Act applies to
  the ad valorem tax rate of a taxing unit beginning with the 2015 tax
  year, except as provided by Subsection (b) of this section.
         (b)  If the governing body of a taxing unit adopted an ad
  valorem tax rate for the taxing unit 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 taxing unit 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 taxing
  unit.
         SECTION 7.  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 on the 91st day after the last day of the
  legislative session.