89S10732 CJC-D
 
  By: Meyer H.B. No. 17
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the requirements regarding notice of certain property
  tax-related information to be provided by taxing units and
  appraisal districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 44.004, Education Code, is amended by
  amending Subsections (b), (e), (g-1), (i), and (j) and adding
  Subsection (c-3) to read as follows:
         (b)  The president shall mail [provide for the publication
  of] notice of the budget and proposed tax rate meeting to each
  property owner in the district and may also publish the notice in a
  daily, weekly, or biweekly newspaper published in the district. If
  no daily, weekly, or biweekly newspaper is published in the
  district, the president may publish the [shall provide for the
  publication of] notice in a [at least one] newspaper of general
  circulation in the county in which the district's central
  administrative office is located. Notice under this subsection
  shall be provided [published] not earlier than the 30th day or later
  than the 10th day before the date of the hearing.
         (c-3)  In this subsection, "adjusted tax collections,"
  "inflation rate," and "population growth rate" have the meanings
  assigned by Section 26.0621, Tax Code. In addition to the
  information required by Subsection (c) of this section, the notice
  required by that subsection must include the following statement:
         "In the (preceding tax year) tax year, the population of
  (name of school district) changed by (population growth rate for
  school district expressed as a percentage) percent. Inflation in
  the state was (inflation rate expressed as a percentage) percent.
  If (name of school district) adjusted the amount of property tax
  revenue it collected in the (preceding tax year) tax year only to
  account for population change adjusted by inflation, (name of
  school district) would collect (adjusted tax collections for school
  district) in the (current tax year) tax year. If (name of school
  district) adopts the proposed tax rate, (name of school district)
  will collect (estimated dollar amount of property tax revenue to be
  collected in the current tax year)."
         (e)  A person who owns taxable property in a school district
  is entitled to an injunction restraining the collection of taxes by
  the district if the district has not complied with the requirements
  of Subsections (b), (c), (c-1), (c-2), (c-3), and (d), and, if
  applicable, Subsection (i), and the failure to comply was not in
  good faith. An action to enjoin the collection of taxes must be
  filed before the date the district delivers substantially all of
  its tax bills.
         (g-1)  If the rate calculated under Subsection
  (c)(5)(A)(ii)(b) decreases after the publication of the notice
  required by this section, the president is not required to provide
  [publish] another notice or call another meeting to discuss and
  adopt the budget and the proposed lower tax rate.
         (i)  A school district that uses a certified estimate, as
  authorized by Subsection (h), may adopt a budget at the public
  meeting designated in the notice prepared using the estimate, but
  the district may not adopt a tax rate before the district receives
  the certified appraisal roll for the district required by Section
  26.01(a), Tax Code. After receipt of the certified appraisal roll,
  the district must provide [publish] a revised notice and hold
  another public meeting before the district may adopt a tax rate that
  exceeds:
               (1)  the rate proposed in the notice prepared using the
  estimate; or
               (2)  the district's voter-approval rate determined
  under Section 26.08, Tax Code, using the certified appraisal roll.
         (j)  Notwithstanding Subsections (g), (h), and (i), a school
  district may adopt a budget after the district adopts a tax rate for
  the tax year in which the fiscal year covered by the budget begins
  if the district elects to adopt a tax rate before receiving the
  certified appraisal roll for the district as provided by Section
  26.05(g), Tax Code. If a school district elects to adopt a tax rate
  before adopting a budget, the district must provide [publish]
  notice and hold a meeting for the purpose of discussing the proposed
  tax rate as provided by this section. Following adoption of the tax
  rate, the district must provide [publish] notice and hold another
  public meeting before the district may adopt a budget. The
  comptroller shall prescribe the language and format to be used in
  the notices. The school district may use the certified estimate of
  taxable value in preparing a notice under this subsection.
         SECTION 2.  Section 44.004(c), Education Code, as amended by
  S.B. 1453, Acts of the 89th Legislature, Regular Session, 2025, and
  effective January 1, 2026, 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 provides [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 3.  Section 44.0041(a), Education Code, is amended
  to read as follows:
         (a)  Concurrently with the provision [publication] of notice
  of the budget under Section 44.004, a school district shall post a
  summary of the proposed budget:
               (1)  on the school district's Internet website; or
               (2)  if the district has no Internet website, in the
  district's central administrative office.
         SECTION 4.  Sections 26.06(b-4) and (c), Tax Code, are
  amended to read as follows:
         (b-4)  In addition to including the information described by
  Subsection (b-1), (b-2), or (b-3), as applicable, the notice must
  include the information described by Sections [Section] 26.062 and
  26.0621.
         (c)  A taxing unit shall mail the [The] notice of a public
  hearing required under this section [may be delivered by mail] to
  each property owner in the taxing unit, and [or] may also publish
  the notice [be published] in a newspaper.  If the notice is
  published in a newspaper, it may not be in the part of the paper in
  which legal notices and classified advertisements appear.  The [If
  the taxing unit publishes the notice in a newspaper, the] taxing
  unit must also post the notice prominently on the home page of the
  Internet website of the taxing unit from the date the notice is
  first provided [published] until the public hearing is concluded.
         SECTION 5.  Section 26.061(c), Tax Code, is amended to read
  as follows:
         (c)  In addition to including the information described by
  Subsection (b), the notice must include the information described
  by Sections [Section] 26.062 and 26.0621.
         SECTION 6.  The heading to Section 26.062, Tax Code, is
  amended to read as follows:
         Sec. 26.062.  ADDITIONAL INFORMATION REGARDING TAXES
  IMPOSED ON PROPERTIES TO BE INCLUDED IN TAX RATE NOTICE.
         SECTION 7.  Chapter 26, Tax Code, is amended by adding
  Section 26.0621 to read as follows:
         Sec. 26.0621.  ADDITIONAL INFORMATION REGARDING TAX
  COLLECTIONS TO BE INCLUDED IN TAX RATE NOTICE. (a) In this
  section:
               (1)  "Adjusted collection rate" for a taxing unit means
  the rate computed by subtracting one from the product of:
                     (A)  the sum of one and the population growth
  rate; and
                     (B)  the sum of one and the inflation rate.
               (2)  "Adjusted tax collections" for a taxing unit means
  an amount equal to the product of:
                     (A)  the amount of property tax revenue collected
  by the taxing unit in the preceding tax year; and
                     (B)  the sum of one and the adjusted collection
  rate for the taxing unit.
               (3)  "Consumer price index" means the average over a
  calendar year of the index that the comptroller considers to most
  accurately report changes in the purchasing power of the dollar for
  consumers in this state.
               (4)  "Inflation rate" means the amount, expressed in
  decimal form rounded to the nearest thousandth, computed by
  determining the percentage change in the consumer price index for
  the preceding calendar year as compared to the consumer price index
  for the calendar year preceding that calendar year.
               (5)  "Population growth rate" means the rate of growth
  of a taxing unit's population during the preceding tax year,
  expressed in decimal form rounded to the nearest thousandth,
  determined by the taxing unit using the most recent population
  estimates available from the United States Census Bureau or, if the
  United States Census Bureau does not publish population estimates
  for the taxing unit, other reliable data sources or estimation
  methods determined by the taxing unit.
         (b)  The comptroller shall determine the inflation rate that
  must be used by a taxing unit to make the computation required by
  this section and publish the rate in the Texas Register each year on
  July 1 or as soon thereafter as practicable.
         (c)  In addition to the information described by Section
  26.06(b-1), (b-2), or (b-3) or 26.061, as applicable, a taxing unit
  must include in the notice required by that provision one of the
  following statements that accurately describes the effect of the
  proposed tax rate:
               (1)  "If (name of taxing unit) adopts the proposed tax
  rate, (name of taxing unit) will collect (estimated dollar amount
  of property tax revenue to be collected in the current tax year) in
  the (current tax year) tax year as compared to (dollar amount of
  property tax revenue collected in the preceding tax year) in the
  (preceding tax year) tax year. The amount of property tax revenue
  collected by (name of taxing unit) will increase by (estimated
  dollar amount of increase) in the (current tax year) tax year, which
  is a (insert percentage increase) percent increase from the amount
  collected in the (preceding tax year) tax year. In the (preceding
  tax year) tax year, the population of (name of taxing unit) changed
  by (population growth rate for taxing unit expressed as a
  percentage) percent. Inflation in the state was (inflation rate
  expressed as a percentage) percent. If (name of taxing unit)
  adjusted the amount of property tax revenue it collected in the
  (preceding tax year) tax year only to account for population change
  adjusted by inflation, (name of taxing unit) would collect
  (adjusted tax collections for taxing unit) in the (current tax
  year) tax year.";
               (2)  "If (name of taxing unit) adopts the proposed tax
  rate, (name of taxing unit) will collect (estimated dollar amount
  of property tax revenue to be collected in the current tax year) in
  the (current tax year) tax year as compared to (dollar amount of
  property tax revenue collected in the preceding tax year) in the
  (preceding tax year) tax year. The amount of property tax revenue
  collected by (name of taxing unit) will decrease by (estimated
  dollar amount of decrease) in the (current tax year) tax year, which
  is a (insert percentage decrease) percent decrease from the amount
  collected in the (preceding tax year) tax year. In the (preceding
  tax year) tax year, the population of (name of taxing unit) changed
  by (population growth rate for taxing unit expressed as a
  percentage) percent. Inflation in the state was (inflation rate
  expressed as a percentage) percent. If (name of taxing unit)
  adjusted the amount of property tax revenue it collected in the
  (preceding tax year) tax year only to account for population change
  adjusted by inflation, (name of taxing unit) would collect
  (adjusted tax collections for taxing unit) in the (current tax
  year) tax year."; or
               (3)  "If (name of taxing unit) adopts the proposed tax
  rate, (name of taxing unit) will collect (estimated dollar amount
  of property tax revenue to be collected in the current tax year) in
  the (current tax year) tax year, which is the same amount of
  property tax revenue collected by (name of taxing unit) in the
  (preceding tax year) tax year. In the (preceding tax year) tax
  year, the population of (name of taxing unit) changed by
  (population growth rate for taxing unit expressed as a percentage)
  percent. Inflation in the state was (inflation rate expressed as a
  percentage) percent. If (name of taxing unit) adjusted the amount
  of property tax revenue it collected in the (preceding tax year) tax
  year only to account for population change adjusted by inflation,
  (name of taxing unit) would collect (adjusted tax collections for
  taxing unit) in the (current tax year) tax year."
         SECTION 8.  Section 26.17, Tax Code, is amended by adding
  Subsection (b-1) to read as follows:
         (b-1)  In this subsection, "adjusted tax collections,"
  "inflation rate," and "population growth rate" have the meanings
  assigned by Section 26.0621. In addition to the information
  required by Subsection (b) of this section, the database must
  include, with respect to each property that is listed on the
  appraisal roll for the appraisal district, the following statement
  for each taxing unit in which the property is located:
         "In the (preceding tax year) tax year, the population of
  (name of taxing unit) changed by (population growth rate for taxing
  unit expressed as a percentage) percent. Inflation in the state was
  (inflation rate expressed as a percentage) percent. If (name of
  taxing unit) adjusted the amount of property tax revenue it
  collected in the (preceding tax year) tax year only to account for
  population change adjusted by inflation, (name of taxing unit)
  would collect (adjusted tax collections for taxing unit) in the
  (current tax year) tax year. If (name of taxing unit) adopts the
  proposed tax rate, (name of taxing unit) will collect (estimated
  dollar amount of property tax revenue to be collected in the current
  tax year)."
         SECTION 9.  Section 49.236, Water Code, is amended by adding
  Subsection (a-1) and amending Subsection (b) to read as follows:
         (a-1)  In this subsection, "adjusted tax collections,"
  "inflation rate," and "population growth rate" have the meanings
  assigned by Section 26.0621, Tax Code. In addition to the
  information required by Subsection (a) of this section, the notice
  required by that subsection must include the following statement:
         "In the (preceding tax year) tax year, the population of
  (name of district) changed by (population growth rate for district
  expressed as a percentage) percent. Inflation in the state was
  (inflation rate expressed as a percentage) percent. If (name of
  district) adjusted the amount of property tax revenue it collected
  in the (preceding tax year) tax year only to account for population
  change adjusted by inflation, (name of district) would collect
  (adjusted tax collections for district) in the (current tax year)
  tax year. If (name of district) adopts the proposed tax rate, (name
  of district) will collect (estimated dollar amount of property tax
  revenue to be collected in the current tax year)."
         (b)  Notice of the hearing [shall be]:
               (1)  may be published at least once in a newspaper
  having general circulation in the district at least seven days
  before the date of the hearing; and [or]
               (2)  shall be mailed to each owner of taxable property
  in the district, at the address for notice shown on the most
  recently certified tax roll of the district, at least 10 days before
  the date of the hearing.
         SECTION 10.  The changes in law made by this Act apply only
  to an ad valorem tax year that begins on or after the effective date
  of this Act.
         SECTION 11.  This Act takes effect January 1, 2026.