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A BILL TO BE ENTITLED
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AN ACT
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relating to the procedure for adopting an ad valorem tax rate that |
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exceeds a certain rate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.05(d), Tax Code, is amended to read as |
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follows: |
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(d) The governing body of a taxing unit other than a school |
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district may not adopt a tax rate that exceeds the lower of the |
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rollback tax rate or the effective tax rate calculated as provided |
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by this chapter until the governing body has provided the notice |
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required by Section 26.053 and has held two public hearings on the |
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proposed tax rate and [has] otherwise complied with Section 26.06 |
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and Section 26.065. The governing body of a taxing unit shall |
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reduce a tax rate set by law or by vote of the electorate to the |
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lower of the rollback tax rate or the effective tax rate and may not |
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adopt a higher rate unless it first complies with Section 26.06. |
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SECTION 2. Section 26.052(d), Tax Code, is amended to read |
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as follows: |
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(d) A taxing unit that provides public notice of a proposed |
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tax rate under Subsection (c) is exempt from Sections 26.05(d), |
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26.053, and 26.06 and is not subject to an injunction under Section |
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26.05(e) for failure to comply with Section 26.05(d). A taxing unit |
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that provides public notice of a proposed tax rate under Subsection |
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(c) may not adopt a tax rate that exceeds the rate set out in the |
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notice unless the taxing unit provides additional public notice |
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under Subsection (c) of the higher rate or complies with Sections |
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26.05(d), 26.053, and 26.06, as applicable, in adopting the higher |
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rate. |
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SECTION 3. Chapter 26, Tax Code, is amended by adding |
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Section 26.053 to read as follows: |
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Sec. 26.053. NOTICE OF PROPOSED TAX REVENUE INCREASE. (a) |
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Before conducting the first public hearing required by Section |
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26.06, the governing body of a taxing unit that proposes to adopt a |
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tax rate that exceeds the lower of the effective tax rate or the |
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rollback tax rate calculated as provided by this chapter must: |
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(1) adopt a resolution indicating each member of the |
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governing body who is in favor of the proposed tax rate and each |
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member of the governing body who is opposed to the proposed tax |
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rate; and |
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(2) provide written notice to each property owner in |
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the taxing unit of: |
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(A) the total amount of tax revenue raised by the |
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taxing unit in the preceding tax year; |
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(B) the total amount of tax revenue proposed to |
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be raised by the taxing unit in the current tax year at the proposed |
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tax rate; |
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(C) the percentage change in the total amount of |
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tax revenue proposed to be raised by the taxing unit from the |
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preceding tax year to the current tax year; and |
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(D) the name of each member of the governing body |
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of the taxing unit who is in favor of the proposed tax rate and each |
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member of the governing body who is opposed to the proposed tax |
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rate. |
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(b) Each taxing unit that is subject to this section is |
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responsible for mailing the notice required by Subsection (a)(2) to |
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the owners of property in the taxing unit. |
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(c) Notwithstanding Subsection (b), at the request of a |
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taxing unit that is subject to this section, an appraisal district |
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in which the taxing unit participates shall mail the notice |
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required by Subsection (a)(2) to the owners of property located in |
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the part of the taxing unit that is located in the appraisal |
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district. If more than one taxing unit that participates in the |
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appraisal district requests that the appraisal district provide the |
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notice, the appraisal district may include the owners of property |
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in more than one taxing unit in the notice. |
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(d) The comptroller shall adopt rules prescribing the form |
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and timing of the mailing of the notice. |
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SECTION 4. Section 140.010(c), Local Government Code, is |
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amended to read as follows: |
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(c) A county or municipality that provides notice of the |
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county's or municipality's proposed property tax rate in the manner |
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provided by this section is exempt from the notice and publication |
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requirements of Sections 26.04(e), 26.052, 26.053, and 26.06, Tax |
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Code, as applicable, and is not subject to an injunction for failure |
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to comply with those requirements. |
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SECTION 5. Section 8876.152(a), Special District Local Laws |
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Code, is amended to read as follows: |
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(a) Sections 26.04, 26.05, 26.053, 26.06, and 26.07, Tax |
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Code, do not apply to a tax imposed by the district. |
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SECTION 6. This Act applies to the ad valorem tax rate of a |
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taxing unit for a tax year beginning on or after the effective date |
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of this Act. |
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SECTION 7. This Act takes effect January 1, 2018. |