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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation and dissemination of certain ad valorem |
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tax rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.012, Tax Code, is amended by adding |
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Subdivisions (1-a) and (1-b) to read as follows: |
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(1-a) "Adjusted effective tax rate" means the |
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effective tax rate of a taxing unit as otherwise calculated under |
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this chapter, except that new property value is not deducted from |
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current total value in calculating the rate. |
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(1-b) "Adjusted rollback tax rate" means the rollback |
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tax rate of a taxing unit as otherwise calculated under this |
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chapter, except that new property value is not deducted from |
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current total value in calculating the effective maintenance and |
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operations rate. |
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SECTION 2. Section 26.04, Tax Code, is amended by adding |
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Subsection (c-1) and amending Subsection (e) to read as follows: |
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(c-1) In addition to calculating the tax rates described by |
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Subsection (c), the designated officer or employee shall calculate |
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the adjusted effective tax rate and the adjusted rollback tax rate |
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for the unit. |
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(e) By August 7 or as soon thereafter as practicable, the |
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designated officer or employee shall submit the rates to the |
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governing body. The designated officer or employee [He] shall |
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deliver by mail to each property owner in the unit or publish in a |
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newspaper in the form prescribed by the comptroller: |
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(1) the effective tax rate, the rollback tax rate, and |
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an explanation of how they were calculated; |
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(1-a) the adjusted effective tax rate, the adjusted |
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rollback tax rate, and an explanation of how they were calculated; |
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(2) the estimated amount of interest and sinking fund |
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balances and the estimated amount of maintenance and operation or |
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general fund balances remaining at the end of the current fiscal |
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year that are not encumbered with or by corresponding existing debt |
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obligation; |
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(3) a schedule of the unit's debt obligations showing: |
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(A) the amount of principal and interest that |
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will be paid to service the unit's debts in the next year from |
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property tax revenue, including payments of lawfully incurred |
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contractual obligations providing security for the payment of the |
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principal of and interest on bonds and other evidences of |
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indebtedness issued on behalf of the unit by another political |
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subdivision and, if the unit is created under Section 52, Article |
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III, or Section 59, Article XVI, Texas Constitution, payments on |
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debts that the unit anticipates to incur in the next calendar year; |
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(B) the amount by which taxes imposed for debt |
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are to be increased because of the unit's anticipated collection |
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rate; and |
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(C) the total of the amounts listed in Paragraphs |
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(A)-(B), less any amount collected in excess of the previous year's |
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anticipated collections certified as provided in Subsection (b); |
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(4) the amount of additional sales and use tax revenue |
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anticipated in calculations under Section 26.041; |
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(5) a statement that the adoption of a tax rate equal |
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to the effective tax rate would result in an increase or decrease, |
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as applicable, in the amount of taxes imposed by the unit as |
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compared to last year's levy, and the amount of the increase or |
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decrease; |
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(6) in the year that a taxing unit calculates an |
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adjustment under Subsection (i) or (j), a schedule that includes |
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the following elements: |
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(A) the name of the unit discontinuing the |
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department, function, or activity; |
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(B) the amount of property tax revenue spent by |
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the unit listed under Paragraph (A) to operate the discontinued |
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department, function, or activity in the 12 months preceding the |
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month in which the calculations required by this chapter are made; |
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and |
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(C) the name of the unit that operates a distinct |
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department, function, or activity in all or a majority of the |
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territory of a taxing unit that has discontinued operating the |
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distinct department, function, or activity; and |
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(7) in the year following the year in which a taxing |
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unit raised its rollback rate as required by Subsection (j), a |
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schedule that includes the following elements: |
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(A) the amount of property tax revenue spent by |
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the unit to operate the department, function, or activity for which |
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the taxing unit raised the rollback rate as required by Subsection |
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(j) for the 12 months preceding the month in which the calculations |
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required by this chapter are made; and |
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(B) the amount published by the unit in the |
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preceding tax year under Subdivision (6)(B). |
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SECTION 3. Sections 140.010(a), (d), and (e), Local |
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Government Code, are amended to read as follows: |
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(a) In this section, "effective tax rate," [and] "rollback |
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tax rate," "adjusted effective tax rate," and "adjusted rollback |
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tax rate" mean the effective tax rate, [and] rollback tax rate, |
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adjusted effective tax rate, and adjusted rollback tax rate of a |
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county or municipality, as applicable, as calculated under Chapter |
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26, Tax Code. |
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(d) A county or municipality that proposes a property tax |
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rate that does not exceed the lower of the effective tax rate or the |
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rollback tax rate shall provide the following notice: |
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"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX |
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RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY) |
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"A tax rate of $______ per $100 valuation has been proposed by the |
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governing body of (insert name of county or municipality). |
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PROPOSED TAX RATE$______ per $100 |
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PRECEDING YEAR'S TAX RATE$______ per $100 |
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EFFECTIVE TAX RATE$______ per $100 |
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ADJUSTED EFFECTIVE TAX RATE$______ per $100 |
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"The effective tax rate is the total tax rate needed to raise the |
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same amount of property tax revenue for (insert name of county or |
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municipality) from the same properties in both the (insert |
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preceding tax year) tax year and the (insert current tax year) tax |
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year. |
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"The adjusted effective tax rate is the tax rate that would have |
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been calculated as the effective tax rate had property added to the |
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appraisal roll in the current year not been excluded in calculating |
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that rate. |
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"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS |
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FOLLOWS: |
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property tax amount = (rate) x (taxable value of your property) / |
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100 |
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"For assistance or detailed information about tax calculations, |
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please contact: |
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(insert name of county or municipal tax assessor-collector) |
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(insert name of county or municipality) tax |
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assessor-collector |
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(insert address) |
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(insert telephone number) |
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(insert e-mail address) |
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(insert Internet website address, if applicable)" |
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(e) A county or municipality that proposes a property tax |
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rate that exceeds the lower of the effective tax rate or the |
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rollback tax rate shall provide the following notice: |
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"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX |
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RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY) |
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"A tax rate of $_____ per $100 valuation has been proposed for |
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adoption by the governing body of (insert name of county or |
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municipality). This rate exceeds the lower of the effective or |
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rollback tax rate, and state law requires that two public hearings |
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be held by the governing body before adopting the proposed tax rate. |
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The governing body of (insert name of county or municipality) |
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proposes to use revenue attributable to the tax rate increase for |
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the purpose of (description of purpose of increase). |
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PROPOSED TAX RATE$______ per $100 |
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PRECEDING YEAR'S TAX RATE$______ per $100 |
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EFFECTIVE TAX RATE$______ per $100 |
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ROLLBACK TAX RATE$______ per $100 |
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ADJUSTED EFFECTIVE TAX RATE$______ per $100 |
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ADJUSTED ROLLBACK TAX RATE$______ per $100 |
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"The effective tax rate is the total tax rate needed to raise the |
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same amount of property tax revenue for (insert name of county or |
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municipality) from the same properties in both the (insert |
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preceding tax year) tax year and the (insert current tax year) tax |
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year. |
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"The rollback tax rate is the highest tax rate that (insert name of |
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county or municipality) may adopt before voters are entitled to |
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petition for an election to limit the rate that may be approved to |
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the rollback rate. |
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"The adjusted effective tax rate is the tax rate that would have |
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been calculated as the effective tax rate had property added to the |
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appraisal roll in the current year not been excluded in calculating |
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that rate. |
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"The adjusted rollback tax rate is the tax rate that would have been |
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calculated as the rollback tax rate had property added to the |
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appraisal roll in the current year not been excluded in calculating |
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the effective maintenance and operations rate, which is a component |
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of the rollback tax rate. |
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"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS |
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FOLLOWS: |
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property tax amount = (rate) x (taxable value of your property) / |
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100 |
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"For assistance or detailed information about tax calculations, |
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please contact: |
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(insert name of county or municipal tax assessor-collector) |
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(insert name of county or municipality) tax |
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assessor-collector |
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(insert address) |
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(insert telephone number) |
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(insert e-mail address) |
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(insert Internet website address, if applicable) |
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"You are urged to attend and express your views at the following |
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public hearings on the proposed tax rate: |
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First Hearing: (insert date and time) at (insert location of |
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meeting). |
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Second Hearing: (insert date and time) at (insert location |
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of meeting)." |
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SECTION 4. (a) The change in law made by this Act applies |
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to the ad valorem tax rate of a taxing unit beginning with the 2017 |
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tax year, except as provided by Subsection (b) of this section. |
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(b) If the governing body of a taxing unit adopted an ad |
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valorem tax rate for the taxing unit for the 2017 tax year before |
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the effective date of this Act, the change in law made by this Act |
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applies to the ad valorem tax rate of that taxing unit beginning |
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with the 2018 tax year, and the law in effect when the tax rate was |
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adopted applies to the 2017 tax year with respect to that taxing |
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unit. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |
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* * * * * |