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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of certain ad valorem tax rates of a |
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school district. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 5.07(f), Tax Code, is amended to read as |
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follows: |
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(f) The comptroller shall prescribe tax rate calculation |
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forms to be used by the designated officer or employee of each[: |
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[(1)] taxing unit [other than a school district] to |
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calculate and submit the no-new-revenue tax rate and the |
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voter-approval tax rate for the taxing unit as required by Chapter |
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26[; and |
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[(2) school district to: |
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[(A) calculate and submit the no-new-revenue tax |
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rate and the voter-approval tax rate for the district as required by |
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Chapter 26; and |
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[(B) submit the rate to maintain the same amount |
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of state and local revenue per weighted student that the district |
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received in the school year beginning in the preceding tax year as |
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required by Chapter 26]. |
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SECTION 2. Section 26.012(18), Tax Code, is amended to read |
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as follows: |
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(18) "No-new-revenue maintenance and operations rate" |
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means a rate expressed in dollars per $100 of taxable value |
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calculated as follows: |
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(A) for a taxing unit other than a school |
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district, the rate [and] calculated according to the following |
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formula: |
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NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE = (LAST |
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YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST YEAR'S JUNIOR COLLEGE |
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LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE) |
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; or |
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(B) for a school district, the rate calculated as |
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provided by Section 44.004(c)(5)(A)(ii)(a), Education Code. |
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SECTION 3. Section 26.05(b), Tax Code, is amended to read as |
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follows: |
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(b) A taxing unit may not impose property taxes in any year |
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until the governing body has adopted a tax rate for that year, and |
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the annual tax rate must be set by ordinance, resolution, or order, |
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depending on the method prescribed by law for adoption of a law by |
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the governing body. The vote on the ordinance, resolution, or order |
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setting the tax rate must be separate from the vote adopting the |
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budget. For a taxing unit other than a school district, the vote on |
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the ordinance, resolution, or order setting a tax rate that exceeds |
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the no-new-revenue tax rate must be a record vote, and at least 60 |
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percent of the members of the governing body must vote in favor of |
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the ordinance, resolution, or order. For a school district, the |
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vote on the ordinance, resolution, or order setting a tax rate that |
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exceeds the rate calculated as provided by Section |
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44.004(c)(5)(A)(ii), Education Code, [sum of the no-new-revenue |
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maintenance and operations tax rate of the district as determined |
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under Section 26.08(i) and the district's current debt rate] must |
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be a record vote, and at least 60 percent of the members of the |
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governing body must vote in favor of the ordinance, resolution, or |
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order. A motion to adopt an ordinance, resolution, or order setting |
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a tax rate that exceeds the no-new-revenue tax rate must be made in |
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the following form: "I move that the property tax rate be increased |
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by the adoption of a tax rate of (specify tax rate), which is |
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effectively a (insert percentage by which the proposed tax rate |
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exceeds the no-new-revenue tax rate) percent increase in the tax |
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rate." If the ordinance, resolution, or order sets a tax rate that, |
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if applied to the total taxable value, will impose an amount of |
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taxes to fund maintenance and operation expenditures of the taxing |
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unit that exceeds the amount of taxes imposed for that purpose in |
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the preceding year, the taxing unit must: |
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(1) include in the ordinance, resolution, or order in |
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type larger than the type used in any other portion of the document: |
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(A) the following statement: "THIS TAX RATE WILL |
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RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S |
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TAX RATE."; and |
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(B) if the tax rate exceeds the no-new-revenue |
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maintenance and operations rate, the following statement: "THE TAX |
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RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
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TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS |
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RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS |
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ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."; and |
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(2) include on the home page of the Internet website of |
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the taxing unit: |
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(A) the following statement: "(Insert name of |
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taxing unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR |
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MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and |
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(B) if the tax rate exceeds the no-new-revenue |
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maintenance and operations rate, the following statement: "THE TAX |
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RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
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TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS |
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RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS |
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ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)." |
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SECTION 4. Section 26.17(b), Tax Code, is amended to read as |
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follows: |
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(b) The database must include, with respect to each property |
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listed on the appraisal roll for the appraisal district: |
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(1) the property's identification number; |
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(2) the property's market value; |
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(3) the property's taxable value; |
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(4) the name of each taxing unit in which the property |
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is located; |
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(5) for each taxing unit other than a school district |
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in which the property is located: |
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(A) the no-new-revenue tax rate; and |
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(B) the voter-approval tax rate; |
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(6) for each school district in which the property is |
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located: |
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(A) the tax rate that would maintain the same |
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amount of state and local revenue per [weighted] student that the |
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district received in the school year beginning in the preceding tax |
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year; and |
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(B) the voter-approval tax rate; |
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(7) the tax rate proposed by the governing body of each |
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taxing unit in which the property is located; |
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(8) for each taxing unit other than a school district |
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in which the property is located, the taxes that would be imposed on |
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the property if the taxing unit adopted a tax rate equal to: |
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(A) the no-new-revenue tax rate; and |
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(B) the proposed tax rate; |
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(9) for each school district in which the property is |
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located, the taxes that would be imposed on the property if the |
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district adopted a tax rate equal to: |
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(A) the tax rate that would maintain the same |
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amount of state and local revenue per [weighted] student that the |
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district received in the school year beginning in the preceding tax |
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year; and |
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(B) the proposed tax rate; |
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(10) for each taxing unit other than a school district |
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in which the property is located, the difference between the amount |
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calculated under Subdivision (8)(A) and the amount calculated under |
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Subdivision (8)(B); |
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(11) for each school district in which the property is |
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located, the difference between the amount calculated under |
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Subdivision (9)(A) and the amount calculated under Subdivision |
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(9)(B); |
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(12) the date, time, and location of the public |
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hearing, if applicable, on the proposed tax rate to be held by the |
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governing body of each taxing unit in which the property is located; |
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(13) the date, time, and location of the public |
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meeting, if applicable, at which the tax rate will be adopted to be |
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held by the governing body of each taxing unit in which the property |
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is located; and |
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(14) for each taxing unit in which the property is |
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located, an e-mail address at which the taxing unit is capable of |
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receiving written comments regarding the proposed tax rate of the |
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taxing unit. |
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SECTION 5. The change in law made by this Act applies to an |
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ad valorem tax year that begins on or after the effective date of |
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this Act. |
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SECTION 6. This Act takes effect January 1, 2024. |