By: Bettencourt S.B. No. 1814
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the current debt rate and tax rate of a taxing unit for
  ad valorem tax purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 44.004(c), Education Code, is amended to
  read as follows:
         (c)  The notice of public meeting to discuss and adopt the
  budget and the proposed tax rate may not be smaller than one-quarter
  page of a standard-size or a tabloid-size newspaper, and the
  headline on the notice must be in 18-point or larger type. Subject
  to Subsection (d), the notice must:
               (1)  contain a statement in the following form:
  "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
         "The (name of school district) will hold a public meeting at
  (time, date, year) in (name of room, building, physical location,
  city, state). The purpose of this meeting is to discuss the school
  district's budget that will determine the tax rate that will be
  adopted. Public participation in the discussion is invited." The
  statement of the purpose of the meeting must be in bold type. In
  reduced type, the notice must state: "The tax rate that is
  ultimately adopted at this meeting or at a separate meeting at a
  later date may not exceed the proposed rate shown below unless the
  district publishes a revised notice containing the same information
  and comparisons set out below and holds another public meeting to
  discuss the revised notice." In addition, in reduced type, the
  notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
  your local 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.";
               (2)  contain a section entitled "Comparison of Proposed
  Budget with Last Year's Budget," which must show the difference,
  expressed as a percent increase or decrease, as applicable, in the
  amounts budgeted for the preceding fiscal year and the amount
  budgeted for the fiscal year that begins in the current tax year for
  each of the following:
                     (A)  maintenance and operations;
                     (B)  debt service; and
                     (C)  total expenditures;
               (3)  contain a section entitled "Total Appraised Value
  and Total Taxable Value," which must show the total appraised value
  and the total taxable value of all property and the total appraised
  value and the total taxable value of new property taxable by the
  district in the preceding tax year and the current tax year as
  calculated under Section 26.04, Tax Code;
               (4)  contain a statement of the total amount of the
  outstanding and unpaid bonded indebtedness of the school district;
               (5)  contain a section entitled "Comparison of Proposed
  Rates with Last Year's Rates," which must:
                     (A)  show in rows the tax rates described by
  Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
  property, for columns entitled "Maintenance & Operations,"
  "Interest & Sinking Fund," and "Total," which is the sum of
  "Maintenance & Operations" and "Interest & Sinking Fund":
                           (i)  the school district's "Last Year's
  Rate";
                           (ii)  the "Rate to Maintain Same Level of
  Maintenance & Operations Revenue & Pay Debt Service," which:
                                 (a)  in the case of "Maintenance &
  Operations," is the tax rate that, when applied to the current
  taxable value for the district, as certified by the chief appraiser
  under Section 26.01, Tax Code, and as adjusted to reflect changes
  made by the chief appraiser as of the time the notice is prepared,
  would impose taxes in an amount that, when added to state funds to
  be distributed to the district under Chapter 48, would provide the
  same amount of maintenance and operations taxes and state funds
  distributed under Chapter 48 per student in average daily
  attendance for the applicable school year that was available to the
  district in the preceding school year; and
                                 (b)  in the case of "Interest & Sinking
  Fund," is the tax rate that, when applied to the current taxable
  value for the district, as certified by the chief appraiser under
  Section 26.01, Tax Code, and as adjusted to reflect changes made by
  the chief appraiser as of the time the notice is prepared, and when
  multiplied by the district's anticipated collection rate, would
  impose taxes in an amount that, when added to state funds to be
  distributed to the district under Chapter 46 and any excess taxes
  collected to service the district's debt during the preceding tax
  year but not used for that purpose during that year, would provide
  the minimum dollar amount required to be paid to service the
  district's debt; and
                           (iii)  the "Proposed Rate";
                     (B)  contain fourth and fifth columns aligned with
  the columns required by Paragraph (A) that show, for each row
  required by Paragraph (A):
                           (i)  the "Local Revenue per Student," which
  is computed by multiplying the district's total taxable value of
  property, as certified by the chief appraiser for the applicable
  school year under Section 26.01, Tax Code, and as adjusted to
  reflect changes made by the chief appraiser as of the time the
  notice is prepared, by the total tax rate, and dividing the product
  by the number of students in average daily attendance in the
  district for the applicable school year; and
                           (ii)  the "State Revenue per Student," which
  is computed by determining the amount of state aid received or to be
  received by the district under Chapters 43, 46, and 48 and dividing
  that amount by the number of students in average daily attendance in
  the district for the applicable school year; and
                     (C)  contain an asterisk after each calculation
  for "Interest & Sinking Fund" and a footnote to the section that, in
  reduced type, states "The Interest & Sinking Fund tax revenue is
  used to pay for bonded indebtedness on construction, equipment, or
  both. The bonds, and the tax rate necessary to pay those bonds, were
  approved by the voters of this district.";
               (6)  contain a section entitled "Comparison of Proposed
  Levy with Last Year's Levy on Average Residence," which must:
                     (A)  show in rows the information described by
  Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
  entitled "Last Year" and "This Year":
                           (i)  "Average Market Value of Residences,"
  determined using the same group of residences for each year;
                           (ii)  "Average Taxable Value of Residences,"
  determined after taking into account the limitation on the
  appraised value of residences under Section 23.23, Tax Code, and
  after subtracting all homestead exemptions applicable in each year,
  other than exemptions available only to disabled persons or persons
  65 years of age or older or their surviving spouses, and using the
  same group of residences for each year;
                           (iii)  "Last Year's Rate Versus Proposed
  Rate per $100 Value"; and
                           (iv)  "Taxes Due on Average Residence,"
  determined using the same group of residences for each year; and
                     (B)  contain the following information: "Increase
  (Decrease) in Taxes" expressed in dollars and cents, which is
  computed by subtracting the "Taxes Due on Average Residence" for
  the preceding tax year from the "Taxes Due on Average Residence" for
  the current tax year;
               (7)  contain the following statement in bold print:
  "Under state law, the dollar amount of school taxes imposed on the
  residence of a person 65 years of age or older or of the surviving
  spouse of such a person, if the surviving spouse was 55 years of age
  or older when the person died, may not be increased above the amount
  paid in the first year after the person turned 65, regardless of
  changes in tax rate or property value.";
               (8)  contain the following statement in bold print:
  "Notice of Voter-Approval Rate: The highest tax rate the district
  can adopt before requiring voter approval at an election is (the
  school district voter-approval rate determined under Section
  26.08, Tax Code). This election will be automatically held if the
  district adopts a rate in excess of the voter-approval rate of (the
  school district voter-approval rate)."; and
               (9)  contain a section entitled "Fund Balances," which
  must include the estimated amount of interest and sinking fund
  balances and the estimated amount of maintenance and operation or
  general fund balances remaining at the end of the current fiscal
  year that are not encumbered with or by corresponding debt
  obligation, less estimated funds necessary for the operation of the
  district before the receipt of the first payment under Chapter 48 in
  the succeeding school year.
         SECTION 2.  Section 26.012(3), Tax Code, is amended to read
  as follows:
               (3)  "Current debt service" means the minimum dollar
  amount required to be expended for debt service for the current
  year.
         SECTION 3.  Section 26.04(e), Tax Code, is amended to read as
  follows:
         (e)  By August 7 or as soon thereafter as practicable, the
  designated officer or employee shall submit the rates to the
  governing body. The designated officer or employee shall post
  prominently on the home page of the taxing unit's Internet website
  in the form prescribed by the comptroller:
               (1)  the no-new-revenue tax rate, the voter-approval
  tax rate, and an explanation of how they were calculated;
               (2)  the estimated amount of interest and sinking fund
  balances and the estimated amount of maintenance and operation or
  general fund balances remaining at the end of the current fiscal
  year that are not encumbered with or by corresponding existing debt
  obligation; and
               (3)  a schedule of the taxing unit's debt obligations
  showing:
                     (A)  the minimum dollar amount of principal and
  interest required to [that will] be paid to service the taxing
  unit's debts in the next year from property tax revenue, including
  payments of lawfully incurred contractual obligations providing
  security for the payment of the principal of and interest on bonds
  and other evidences of indebtedness issued on behalf of the taxing
  unit by another political subdivision and, if the taxing unit is
  created under Section 52, Article III, or Section 59, Article XVI,
  Texas Constitution, payments on debts that the taxing unit
  anticipates to incur in the next calendar year;
                     (B)  the amount by which taxes imposed for debt
  are to be increased because of the taxing unit's anticipated
  collection rate; and
                     (C)  the total of the amounts listed in Paragraphs
  (A)-(B), less any amount collected in excess of the previous year's
  anticipated collections certified as provided in Subsection (b).
         SECTION 4.  Section 26.05, Tax Code, is amended by adding
  Subsection (a-1) to read as follows:
         (a-1)  The governing body of a taxing unit may approve a rate
  described by Subsection (a)(1) that exceeds the rate for the taxing
  unit as determined under that subsection only if:
               (1)  the rate is proposed to be approved by a motion
  that:
                     (A)  states the rate determined under Subsection
  (a)(1);
                     (B)  states the proposed rate;
                     (C)  states the difference between the proposed
  rate and the rate determined under Subsection (a)(1); and
                     (D)  describes the purpose for which the excess
  revenue collected from the proposed rate will be used; and
               (2)  the motion is approved by at least 60 percent of
  the members of the governing body. 
         SECTION 5.  This Act applies only to ad valorem taxes imposed
  for an ad valorem tax year that begins on or after the effective
  date of this Act.
         SECTION 6.  This Act takes effect January 1, 2024.