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A BILL TO BE ENTITLED
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AN ACT
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relating to the vote required in an election to approve an ad |
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valorem tax rate that exceeds a taxing unit's voter-approval tax |
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rate; making conforming changes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 281.124(d) and (f), Health and Safety |
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Code, are amended to read as follows: |
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(d) If at least 60 percent [a majority] of the votes cast in |
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the election favor the proposition, the tax rate for the specified |
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tax year is the rate approved by the voters, and that rate is not |
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subject to Section 26.07, Tax Code. The board shall adopt the tax |
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rate as provided by Chapter 26, Tax Code. |
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(f) Notwithstanding any other law, if at least 60 percent [a |
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majority] of the votes cast in the election favor the proposition, a |
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governing body with approval authority over the district's budget |
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or tax rate may not disapprove the tax rate approved by the voters |
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or disapprove the budget based solely on the tax rate approved by |
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the voters. |
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SECTION 2. Section 1101.254(f), Special District Local Laws |
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Code, is amended to read as follows: |
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(f) This section does not affect the applicability of |
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Section 26.07, Tax Code, to the district's tax rate, except that if |
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at least 60 percent of the district voters approve a tax rate |
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increase under this section, Section 26.07, Tax Code, does not |
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apply to the tax rate for that year. |
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SECTION 3. Sections 26.06(b-1) and (b-3), Tax Code, are |
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amended to read as follows: |
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(b-1) If the proposed tax rate exceeds the no-new-revenue |
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tax rate and the voter-approval tax rate of the taxing unit, the |
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notice must contain a statement in the following form: |
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"NOTICE OF PUBLIC HEARING ON TAX INCREASE |
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"PROPOSED TAX RATE $__________ per $100 |
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"NO-NEW-REVENUE TAX RATE $__________ per $100 |
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"VOTER-APPROVAL TAX RATE $__________ per $100 |
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"The no-new-revenue tax rate is the tax rate for the (current |
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tax year) tax year that will raise the same amount of property tax |
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revenue for (name of taxing unit) from the same properties in both |
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the (preceding tax year) tax year and the (current tax year) tax |
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year. |
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"The voter-approval tax rate is the highest tax rate that |
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(name of taxing unit) may adopt without holding an election to seek |
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voter approval of the rate. |
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"The proposed tax rate is greater than the no-new-revenue tax |
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rate. This means that (name of taxing unit) is proposing to |
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increase property taxes for the (current tax year) tax year. |
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"A public hearing on the proposed tax rate will be held on |
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(date and time) at (meeting place). |
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"The proposed tax rate is also greater than the |
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voter-approval tax rate. If (name of taxing unit) adopts the |
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proposed tax rate, (name of taxing unit) is required to hold an |
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election so that the voters may accept or reject the proposed tax |
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rate. Unless at least 60 percent [If a majority] of the voters |
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accept [reject] the proposed tax rate, the tax rate of the (name of |
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taxing unit) will be the voter-approval tax rate. The election will |
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be held on (date of election). You may contact the (name of office |
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responsible for administering the election) for information about |
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voting locations. The hours of voting on election day are (voting |
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hours). |
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"Your taxes owed under any of the tax rates mentioned above |
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can be calculated as follows: |
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"Property tax amount = tax rate x taxable value of your |
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property / 100 |
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"(Names of all members of the governing body, showing how |
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each voted on the proposal to consider the tax increase or, if one |
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or more were absent, indicating the absences.) |
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"Visit Texas.gov/PropertyTaxes to find a link to your local |
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property tax database on which you can easily access information |
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regarding your property taxes, including information about |
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proposed tax rates and scheduled public hearings of each entity |
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that taxes your property. |
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"The 86th Texas Legislature modified the manner in which the |
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voter-approval tax rate is calculated to limit the rate of growth of |
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property taxes in the state." |
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(b-3) If the proposed tax rate does not exceed the |
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no-new-revenue tax rate but exceeds the voter-approval tax rate of |
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the taxing unit, the notice must contain a statement in the |
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following form: |
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"NOTICE OF PUBLIC HEARING ON TAX RATE |
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"PROPOSED TAX RATE $__________ per $100 |
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"NO-NEW-REVENUE TAX RATE $__________ per $100 |
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"VOTER-APPROVAL TAX RATE $__________ per $100 |
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"The no-new-revenue tax rate is the tax rate for the (current |
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tax year) tax year that will raise the same amount of property tax |
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revenue for (name of taxing unit) from the same properties in both |
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the (preceding tax year) tax year and the (current tax year) tax |
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year. |
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"The voter-approval tax rate is the highest tax rate that |
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(name of taxing unit) may adopt without holding an election to seek |
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voter approval of the rate. |
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"The proposed tax rate is not greater than the no-new-revenue |
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tax rate. This means that (name of taxing unit) is not proposing to |
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increase property taxes for the (current tax year) tax year. |
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"A public hearing on the proposed tax rate will be held on |
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(date and time) at (meeting place). |
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"The proposed tax rate is greater than the voter-approval tax |
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rate. If (name of taxing unit) adopts the proposed tax rate, (name |
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of taxing unit) is required to hold an election so that the voters |
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may accept or reject the proposed tax rate. Unless at least 60 |
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percent [If a majority] of the voters accept [reject] the proposed |
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tax rate, the tax rate of the (name of taxing unit) will be the |
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voter-approval tax rate. The election will be held on (date of |
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election). You may contact the (name of office responsible for |
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administering the election) for information about voting |
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locations. The hours of voting on election day are (voting hours). |
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"Your taxes owed under any of the tax rates mentioned above |
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can be calculated as follows: |
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"Property tax amount = tax rate x taxable value of your |
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property / 100 |
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"(Names of all members of the governing body, showing how |
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each voted on the proposal to consider the tax rate or, if one or |
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more were absent, indicating the absences.) |
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"Visit Texas.gov/PropertyTaxes to find a link to your local |
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|
property tax database on which you can easily access information |
|
|
regarding your property taxes, including information about |
|
|
proposed tax rates and scheduled public hearings of each entity |
|
|
that taxes your property. |
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|
"The 86th Texas Legislature modified the manner in which the |
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|
voter-approval tax rate is calculated to limit the rate of growth of |
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property taxes in the state." |
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SECTION 4. Section 26.063(b), Tax Code, is amended to read |
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as follows: |
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(b) This subsection applies only to a taxing unit that is |
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required to hold an election under Section 26.07. In the notice |
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required to be provided by the taxing unit under Section 26.06(b-1) |
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or (b-3), as applicable, the taxing unit shall: |
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(1) add the following to the end of the list of rates |
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included in the notice: |
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"DE MINIMIS RATE $__________ per $100"; |
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(2) substitute the following for the definition of |
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"voter-approval tax rate": "The voter-approval tax rate is the |
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highest tax rate that (name of taxing unit) may adopt without |
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holding an election to seek voter approval of the rate, unless the |
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de minimis rate for (name of taxing unit) exceeds the |
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voter-approval tax rate for (name of taxing unit)."; |
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(3) add the following definition of "de minimis |
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rate": "The de minimis rate is the rate equal to the sum of the |
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no-new-revenue maintenance and operations rate for (name of taxing |
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unit), the rate that will raise $500,000, and the current debt rate |
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for (name of taxing unit)."; and |
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(4) substitute the following for the provision that |
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provides notice that an election is required: "The proposed tax |
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rate is greater than the voter-approval tax rate and the de minimis |
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rate. If (name of taxing unit) adopts the proposed tax rate, (name |
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of taxing unit) is required to hold an election so that the voters |
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may accept or reject the proposed tax rate. Unless at least 60 |
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percent [If a majority] of the voters accept [reject] the proposed |
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tax rate, the tax rate of the (name of taxing unit) will be the |
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voter-approval tax rate of the (name of taxing unit). The election |
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will be held on (date of election). You may contact the (name of |
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office responsible for administering the election) for information |
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about voting locations. The hours of voting on election day are |
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(voting hours).". |
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SECTION 5. Section 26.07(d), Tax Code, is amended to read as |
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follows: |
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(d) If at least 60 percent [a majority] of the votes cast |
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in the election favor the proposition, the tax rate for the current |
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year is the rate that was adopted by the governing body. |
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SECTION 6. Section 26.08(c), Tax Code, is amended to read as |
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follows: |
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(c) If at least 60 percent [a majority] of the votes cast in |
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the election favor the proposition, the tax rate for the current |
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year is the rate that was adopted by the governing body. |
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SECTION 7. The changes in law made by this Act apply only to |
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an election held on or after the effective date of this Act. An |
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election held before the effective date of this Act is governed by |
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the law in effect on the date the election was held, and that law is |
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continued in effect for that purpose. |
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SECTION 8. This Act takes effect January 1, 2024. |