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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the commissioners court of a county to |
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impose an additional vehicle registration fee and the effect of the |
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fee on county ad valorem tax rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 26.01(c) and (d), Tax Code, are amended |
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to read as follows: |
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(c) The chief appraiser shall prepare and certify to the |
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assessor for each taxing unit a listing of those properties which |
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are taxable by that unit but which are under protest and therefore |
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not included on the appraisal roll approved by the appraisal review |
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board and certified by the chief appraiser. This listing shall |
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include the appraised market value, productivity value (if |
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applicable), and taxable value as determined by the appraisal |
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district and shall also include the market value, taxable value, |
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and productivity value (if applicable) as claimed by the property |
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owner filing the protest if available. If the property owner does |
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not claim a value and the appraised value of the property in the |
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current year is equal to or less than its value in the preceding |
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year, the listing shall include a reasonable estimate of the market |
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value, taxable value, and productivity value (if applicable) that |
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would be assigned to the property if the taxpayer's claim is upheld. |
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If the property owner does not claim a value and the appraised value |
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of the property is higher than its appraised value in the preceding |
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year, the listing shall include the appraised market value, |
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productivity value (if applicable), and taxable value of the |
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property in the preceding year, except that if there is a reasonable |
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likelihood that the appraisal review board will approve a lower |
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appraised value for the property than its appraised value in the |
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preceding year, the chief appraiser shall make a reasonable |
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estimate of the taxable value that would be assigned to the property |
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if the property owner's claim is upheld. The taxing unit shall use |
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the lower value for calculations as prescribed in Sections 26.04, |
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[and] 26.041, and 26.042 [of this code]. |
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(d) The chief appraiser shall prepare and certify to the |
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assessor for each taxing unit a list of those properties of which |
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the chief appraiser has knowledge that are reasonably likely to be |
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taxable by that taxing unit but that are not included on the |
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appraisal roll certified to the assessor under Subsection (a) or |
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included on the listing certified to the assessor under Subsection |
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(c). The chief appraiser shall include on the list for each |
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property the market value, appraised value, and kind and amount of |
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any partial exemptions as determined by the appraisal district for |
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the preceding year and a reasonable estimate of the market value, |
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appraised value, and kind and amount of any partial exemptions for |
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the current year. Until the property is added to the appraisal |
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roll, the assessor for the taxing unit shall include each property |
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on the list in the calculations prescribed by Sections 26.04, [and] |
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26.041, and 26.042, and for that purpose shall use the lower market |
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value, appraised value, or taxable value, as appropriate, included |
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on or computed using the information included on the list for the |
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property. |
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SECTION 2. Section 26.04(e), Tax Code, is amended to read as |
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follows: |
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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 taxing unit or publish |
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in a 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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(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 taxing unit's debt obligations |
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showing: |
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(A) the amount of principal and interest that |
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will be paid to service the taxing unit's debts in the next year |
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from 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 taxing unit by another |
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political subdivision and, if the taxing unit is created under |
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Section 52, Article III, or Section 59, Article XVI, Texas |
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Constitution, payments on debts that the taxing unit anticipates to |
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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 taxing unit's anticipated |
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collection 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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(4-a) the amount of additional vehicle registration |
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fee revenue anticipated in calculations under Section 26.042; |
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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 taxing 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 taxing 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 taxing unit listed under Paragraph (A) to operate the |
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discontinued department, function, or activity in the 12 months |
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preceding the month in which the calculations required by this |
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chapter are made; and |
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(C) the name of the taxing unit that operates a |
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distinct department, function, or activity in all or a majority of |
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the 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 tax 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 taxing unit to operate the department, function, or activity |
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for which the taxing unit raised the rollback tax rate as required |
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by Subsection (j) for the 12 months preceding the month in which the |
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calculations required by this chapter are made; and |
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(B) the amount published by the taxing unit in |
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the preceding tax year under Subdivision (6)(B). |
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SECTION 3. Chapter 26, Tax Code, is amended by adding |
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Section 26.042 to read as follows: |
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Sec. 26.042. TAX RATE OF COUNTY IMPOSING ADDITIONAL MOTOR |
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VEHICLE REGISTRATION FEE. (a) In the first year in which a county |
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imposes an additional vehicle registration fee under Section |
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502.401(a-1), Transportation Code, the effective tax rate and |
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rollback tax rate for the county are calculated according to the |
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following formulas: |
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EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY |
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LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - |
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ADDITIONAL VEHICLE REGISTRATION FEE GAIN RATE |
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and |
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ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND |
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OPERATIONS RATE x 1.08) + CURRENT DEBT RATE - |
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ADDITIONAL VEHICLE REGISTRATION FEE GAIN RATE |
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where "additional vehicle registration fee gain rate" means a |
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number expressed in dollars per $100 of taxable value, calculated |
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by dividing the anticipated revenue generated by the imposition of |
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the additional vehicle registration fee authorized under Section |
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502.401(a-1), Transportation Code, in the following year as |
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calculated under Subsection (d) of this section by the current |
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total value. |
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(b) Except as provided by Subsections (a) and (c) of this |
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section, in a year in which a county imposes an additional vehicle |
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registration fee under Section 502.401(a-1), Transportation Code, |
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the rollback tax rate for the county is calculated according to the |
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following formula: |
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ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND |
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OPERATIONS EXPENSE x 1.08) / (CURRENT TOTAL VALUE - NEW |
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PROPERTY VALUE)] + (CURRENT DEBT RATE - ADDITIONAL |
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VEHICLE REGISTRATION FEE RATE) |
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where "last year's maintenance and operations expense" means the |
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amount spent for maintenance and operations from property tax and |
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additional vehicle registration fees authorized under Section |
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502.401(a-1), Transportation Code, in the preceding year, and |
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"additional vehicle registration fee rate" means a number expressed |
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in dollars per $100 of taxable value, calculated by dividing the |
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revenue that will be generated by the imposition of the additional |
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vehicle registration fee authorized under Section 502.401(a-1), |
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Transportation Code, in the current year as calculated under |
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Subsection (d) of this section by the current total value. |
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(c) In a year in which a county that has been imposing an |
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additional vehicle registration fee under Section 502.401(a-1), |
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Transportation Code, ceases to impose the fee, the effective tax |
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rate and rollback tax rate for the county are calculated according |
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to the following formulas: |
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EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY |
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LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + |
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ADDITIONAL VEHICLE REGISTRATION FEE LOSS RATE |
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and |
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ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND |
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OPERATIONS EXPENSE x 1.08) / (CURRENT TOTAL VALUE - NEW |
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PROPERTY VALUE)] + CURRENT DEBT RATE |
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where "additional vehicle registration fee loss rate" means a |
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number expressed in dollars per $100 of taxable value, calculated |
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by dividing the amount of revenue generated by the imposition of the |
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additional vehicle registration fee authorized under Section |
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502.401(a-1), Transportation Code, in the preceding year by the |
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current total value, and "last year's maintenance and operations |
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expense" means the amount spent for maintenance and operations from |
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property tax and additional vehicle registration fees authorized |
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under Section 502.401(a-1), Transportation Code, in the preceding |
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year. |
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(d) In order to determine the amount of revenue generated by |
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the imposition of the additional vehicle registration fee under |
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Section 502.401(a-1), Transportation Code, for purposes of this |
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section the designated officer or employee shall use the amount of |
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the additional vehicle registration fee imposed under that |
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subsection in the current year and the number of vehicles |
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registered in the county for the preceding year to project the |
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additional vehicle registration fee revenue for the current tax |
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year. If the amount of the additional vehicle registration fee is |
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increased or reduced, the projection to be used for the first tax |
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year after the effective date of the increase or reduction shall be |
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adjusted to exclude any revenue gained or lost due to the increase |
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or reduction. The designated officer or employee may request from |
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the appropriate county assessor-collector the number of vehicle |
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registrations in the county in the applicable year. The county |
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assessor-collector shall provide the requested information. |
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(e) If the amount of the additional vehicle registration fee |
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authorized under Section 502.401(a-1), Transportation Code, is |
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increased, the designated officer or employee shall make two |
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projections, in the manner provided by Subsection (d) of this |
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section, of the revenue generated by the additional vehicle |
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registration fee in the following year. The first projection must |
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take into account the increase and the second projection must not |
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take into account the increase. The officer or employee shall then |
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subtract the amount of the result of the second projection from the |
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amount of the result of the first projection to determine the |
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revenue generated as a result of the increase in the additional |
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vehicle registration fee. In the first year in which an additional |
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vehicle registration fee is increased, the effective tax rate for |
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the county is the effective tax rate before the increase minus a |
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number the numerator of which is the revenue generated as a result |
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of the increase in the additional vehicle registration fee, as |
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determined under this subsection, and the denominator of which is |
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the current total value minus the new property value. |
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(f) If the amount of the additional vehicle registration fee |
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authorized under Section 502.401(a-1), Transportation Code, is |
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decreased, the designated officer or employee shall make two |
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projections, in the manner provided by Subsection (d) of this |
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section, of the revenue generated by the additional vehicle |
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registration fee in the following year. The first projection must |
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take into account the decrease and the second projection must not |
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take into account the decrease. The officer or employee shall then |
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subtract the amount of the result of the first projection from the |
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amount of the result of the second projection to determine the |
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revenue lost as a result of the decrease in the additional vehicle |
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registration fee. In the first year in which an additional vehicle |
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registration fee is decreased, the effective tax rate for the |
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county is the effective tax rate before the decrease plus a number |
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the numerator of which is the revenue lost as a result of the |
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decrease in the additional vehicle registration fee, as determined |
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under this subsection, and the denominator of which is the current |
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total value minus the new property value. |
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SECTION 4. Section 26.05(a), Tax Code, is amended to read as |
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follows: |
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(a) The governing body of each taxing unit, before the later |
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of September 30 or the 60th day after the date the certified |
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appraisal roll is received by the taxing unit, shall adopt a tax |
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rate for the current tax year and shall notify the assessor for the |
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taxing unit of the rate adopted. The tax rate consists of two |
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components, each of which must be approved separately. The |
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components are: |
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(1) for a taxing unit other than a school district, the |
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rate that, if applied to the total taxable value, will impose the |
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total amount published under Section 26.04(e)(3)(C), less any |
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amount of additional sales and use tax revenue or additional |
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vehicle registration fee revenue that will be used to pay debt |
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service, or, for a school district, the rate calculated under |
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Section 44.004(c)(5)(A)(ii)(b), Education Code; and |
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(2) the rate that, if applied to the total taxable |
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value, will impose the amount of taxes needed to fund maintenance |
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and operation expenditures of the taxing unit for the next year. |
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SECTION 5. Section 31.01, Tax Code, is amended by adding |
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Subsection (i-2) to read as follows: |
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(i-2) For a county that imposes an additional vehicle |
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registration fee under Section 502.401(a-1), Transportation Code, |
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the tax bill shall indicate the amount of additional ad valorem |
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taxes, if any, that would have been imposed on the property if |
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additional ad valorem taxes had been imposed in an amount equal to |
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the amount of revenue estimated to be collected from the additional |
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vehicle registration fee for the year determined as provided by |
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Section 26.042 of this code. |
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SECTION 6. Section 502.401, Transportation Code, is amended |
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by adding Subsection (a-1) to read as follows: |
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(a-1) In addition to the fee authorized under Subsection |
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(a), the commissioners court of a county by order may impose an |
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additional fee, not to exceed $15, for registering a vehicle in the |
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county. |
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SECTION 7. This Act takes effect January 1, 2020. |