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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirements regarding notice of certain property |
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tax-related information to be provided by taxing units and |
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appraisal districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 44.004, Education Code, is amended by |
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amending Subsections (b), (e), (g-1), (i), and (j) and adding |
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Subsection (c-3) to read as follows: |
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(b) The president shall mail [provide for the publication |
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of] notice of the budget and proposed tax rate meeting to each |
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property owner in the district and may also publish the notice in a |
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daily, weekly, or biweekly newspaper published in the district. If |
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no daily, weekly, or biweekly newspaper is published in the |
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district, the president may publish the [shall provide for the |
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publication of] notice in a [at least one] newspaper of general |
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circulation in the county in which the district's central |
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administrative office is located. Notice under this subsection |
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shall be provided [published] not earlier than the 30th day or later |
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than the 10th day before the date of the hearing. |
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(c-3) In this subsection, "adjusted tax collections," |
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"inflation rate," and "population growth rate" have the meanings |
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assigned by Section 26.0621, Tax Code. In addition to the |
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information required by Subsection (c) of this section, the notice |
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required by that subsection must include the following statement: |
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"In the (preceding tax year) tax year, the population of |
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(name of school district) changed by (population growth rate for |
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school district expressed as a percentage) percent. Inflation in |
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the state was (inflation rate expressed as a percentage) percent. |
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If (name of school district) adjusted the amount of property tax |
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revenue it collected in the (preceding tax year) tax year only to |
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account for population change adjusted by inflation, (name of |
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school district) would collect (adjusted tax collections for school |
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district) in the (current tax year) tax year. If (name of school |
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district) adopts the proposed tax rate, (name of school district) |
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will collect (estimated dollar amount of property tax revenue to be |
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collected in the current tax year)." |
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(e) A person who owns taxable property in a school district |
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is entitled to an injunction restraining the collection of taxes by |
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the district if the district has not complied with the requirements |
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of Subsections (b), (c), (c-1), (c-2), (c-3), and (d), and, if |
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applicable, Subsection (i), and the failure to comply was not in |
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good faith. An action to enjoin the collection of taxes must be |
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filed before the date the district delivers substantially all of |
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its tax bills. |
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(g-1) If the rate calculated under Subsection |
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(c)(5)(A)(ii)(b) decreases after the publication of the notice |
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required by this section, the president is not required to provide |
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[publish] another notice or call another meeting to discuss and |
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adopt the budget and the proposed lower tax rate. |
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(i) A school district that uses a certified estimate, as |
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authorized by Subsection (h), may adopt a budget at the public |
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meeting designated in the notice prepared using the estimate, but |
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the district may not adopt a tax rate before the district receives |
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the certified appraisal roll for the district required by Section |
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26.01(a), Tax Code. After receipt of the certified appraisal roll, |
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the district must provide [publish] a revised notice and hold |
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another public meeting before the district may adopt a tax rate that |
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exceeds: |
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(1) the rate proposed in the notice prepared using the |
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estimate; or |
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(2) the district's voter-approval rate determined |
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under Section 26.08, Tax Code, using the certified appraisal roll. |
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(j) Notwithstanding Subsections (g), (h), and (i), a school |
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district may adopt a budget after the district adopts a tax rate for |
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the tax year in which the fiscal year covered by the budget begins |
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if the district elects to adopt a tax rate before receiving the |
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certified appraisal roll for the district as provided by Section |
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26.05(g), Tax Code. If a school district elects to adopt a tax rate |
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before adopting a budget, the district must provide [publish] |
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notice and hold a meeting for the purpose of discussing the proposed |
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tax rate as provided by this section. Following adoption of the tax |
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rate, the district must provide [publish] notice and hold another |
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public meeting before the district may adopt a budget. The |
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comptroller shall prescribe the language and format to be used in |
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the notices. The school district may use the certified estimate of |
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taxable value in preparing a notice under this subsection. |
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SECTION 2. Section 44.004(c), Education Code, as amended by |
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S.B. 1453, Acts of the 89th Legislature, Regular Session, 2025, and |
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effective January 1, 2026, is amended to read as follows: |
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(c) The notice of public meeting to discuss and adopt the |
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budget and the proposed tax rate may not be smaller than one-quarter |
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page of a standard-size or a tabloid-size newspaper, and the |
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headline on the notice must be in 18-point or larger type. Subject |
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to Subsection (d), the notice must: |
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(1) contain a statement in the following form: |
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"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE |
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"The (name of school district) will hold a public meeting at |
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(time, date, year) in (name of room, building, physical location, |
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city, state). The purpose of this meeting is to discuss the school |
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district's budget that will determine the tax rate that will be |
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adopted. Public participation in the discussion is invited." The |
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statement of the purpose of the meeting must be in bold type. In |
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reduced type, the notice must state: "The tax rate that is |
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ultimately adopted at this meeting or at a separate meeting at a |
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later date may not exceed the proposed rate shown below unless the |
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district provides [publishes] a revised notice containing the same |
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information and comparisons set out below and holds another public |
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meeting to discuss the revised notice." In addition, in reduced |
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type, the notice must state: "Visit Texas.gov/PropertyTaxes to find |
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a link to your local property tax database on which you can easily |
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access information regarding your property taxes, including |
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information about proposed tax rates and scheduled public hearings |
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of each entity that taxes your property."; |
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(2) contain a section entitled "Comparison of Proposed |
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Budget with Last Year's Budget," which must show the difference, |
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expressed as a percent increase or decrease, as applicable, in the |
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amounts budgeted for the preceding fiscal year and the amount |
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budgeted for the fiscal year that begins in the current tax year for |
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each of the following: |
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(A) maintenance and operations; |
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(B) debt service; and |
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(C) total expenditures; |
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(3) contain a section entitled "Total Appraised Value |
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and Total Taxable Value," which must show the total appraised value |
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and the total taxable value of all property and the total appraised |
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value and the total taxable value of new property taxable by the |
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district in the preceding tax year and the current tax year as |
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calculated under Section 26.04, Tax Code; |
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(4) contain a statement of the total amount of the |
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outstanding and unpaid bonded indebtedness of the school district; |
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(5) contain a section entitled "Comparison of Proposed |
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Rates with Last Year's Rates," which must: |
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(A) show in rows the tax rates described by |
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Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of |
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property, for columns entitled "Maintenance & Operations," |
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"Interest & Sinking Fund," and "Total," which is the sum of |
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"Maintenance & Operations" and "Interest & Sinking Fund": |
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(i) the school district's "Last Year's |
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Rate"; |
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(ii) the "Rate to Maintain Same Level of |
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Maintenance & Operations Revenue & Pay Debt Service," which: |
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(a) in the case of "Maintenance & |
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Operations," is the tax rate that, when applied to the current |
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taxable value for the district, as certified by the chief appraiser |
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under Section 26.01, Tax Code, and as adjusted to reflect changes |
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made by the chief appraiser as of the time the notice is prepared, |
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would impose taxes in an amount that, when added to state funds to |
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be distributed to the district under Chapter 48, would provide the |
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same amount of maintenance and operations taxes and state funds |
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distributed under Chapter 48 per student in average daily |
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attendance for the applicable school year that was available to the |
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district in the preceding school year; and |
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(b) in the case of "Interest & Sinking |
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Fund," is the tax rate that, when applied to the current taxable |
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value for the district, as certified by the chief appraiser under |
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Section 26.01, Tax Code, and as adjusted to reflect changes made by |
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the chief appraiser as of the time the notice is prepared, and when |
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multiplied by the district's anticipated collection rate, would |
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impose taxes in an amount that, when added to state funds to be |
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distributed to the district under Chapter 46 and any excess taxes |
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collected to service the district's debt during the preceding tax |
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year but not used for that purpose during that year, would provide |
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the minimum dollar amount required to be paid to service the |
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district's debt; and |
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(iii) the "Proposed Rate"; |
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(B) contain fourth and fifth columns aligned with |
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the columns required by Paragraph (A) that show, for each row |
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required by Paragraph (A): |
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(i) the "Local Revenue per Student," which |
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is computed by multiplying the district's total taxable value of |
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property, as certified by the chief appraiser for the applicable |
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school year under Section 26.01, Tax Code, and as adjusted to |
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reflect changes made by the chief appraiser as of the time the |
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notice is prepared, by the total tax rate, and dividing the product |
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by the number of students in average daily attendance in the |
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district for the applicable school year; and |
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(ii) the "State Revenue per Student," which |
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is computed by determining the amount of state aid received or to be |
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received by the district under Chapters 43, 46, and 48 and dividing |
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that amount by the number of students in average daily attendance in |
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the district for the applicable school year; and |
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(C) contain an asterisk after each calculation |
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for "Interest & Sinking Fund" and a footnote to the section that, in |
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reduced type, states "The Interest & Sinking Fund tax revenue is |
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used to pay for bonded indebtedness on construction, equipment, or |
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both. The bonds, and the tax rate necessary to pay those bonds, were |
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approved by the voters of this district."; |
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(6) contain a section entitled "Comparison of Proposed |
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Levy with Last Year's Levy on Average Residence," which must: |
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(A) show in rows the information described by |
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Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns |
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entitled "Last Year" and "This Year": |
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(i) "Average Market Value of Residences," |
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determined using the same group of residences for each year; |
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(ii) "Average Taxable Value of Residences," |
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determined after taking into account the limitation on the |
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appraised value of residences under Section 23.23, Tax Code, and |
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after subtracting all homestead exemptions applicable in each year, |
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other than exemptions available only to disabled persons or persons |
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65 years of age or older or their surviving spouses, and using the |
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same group of residences for each year; |
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(iii) "Last Year's Rate Versus Proposed |
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Rate per $100 Value"; and |
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(iv) "Taxes Due on Average Residence," |
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determined using the same group of residences for each year; and |
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(B) contain the following information: "Increase |
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(Decrease) in Taxes" expressed in dollars and cents, which is |
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computed by subtracting the "Taxes Due on Average Residence" for |
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the preceding tax year from the "Taxes Due on Average Residence" for |
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the current tax year; |
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(7) contain the following statement in bold print: |
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"Under state law, the dollar amount of school taxes imposed on the |
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residence of a person 65 years of age or older or of the surviving |
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spouse of such a person, if the surviving spouse was 55 years of age |
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or older when the person died, may not be increased above the amount |
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paid in the first year after the person turned 65, regardless of |
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changes in tax rate or property value."; |
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(8) contain the following statement in bold print: |
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"Notice of Voter-Approval Rate: The highest tax rate the district |
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can adopt before requiring voter approval at an election is (the |
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school district voter-approval rate determined under Section |
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26.08, Tax Code). This election will be automatically held if the |
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district adopts a rate in excess of the voter-approval rate of (the |
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school district voter-approval rate)."; and |
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(9) contain a section entitled "Fund Balances," which |
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must include 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 debt |
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obligation, less estimated funds necessary for the operation of the |
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district before the receipt of the first payment under Chapter 48 in |
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the succeeding school year. |
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SECTION 3. Section 44.0041(a), Education Code, is amended |
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to read as follows: |
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(a) Concurrently with the provision [publication] of notice |
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of the budget under Section 44.004, a school district shall post a |
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summary of the proposed budget: |
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(1) on the school district's Internet website; or |
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(2) if the district has no Internet website, in the |
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district's central administrative office. |
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SECTION 4. Sections 26.06(b-4) and (c), Tax Code, are |
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amended to read as follows: |
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(b-4) In addition to including the information described by |
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Subsection (b-1), (b-2), or (b-3), as applicable, the notice must |
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include the information described by Sections [Section] 26.062 and |
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26.0621. |
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(c) A taxing unit shall mail the [The] notice of a public |
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hearing required under this section [may be delivered by mail] to |
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each property owner in the taxing unit, and [or] may also publish |
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the notice [be published] in a newspaper. If the notice is |
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published in a newspaper, it may not be in the part of the paper in |
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which legal notices and classified advertisements appear. The [If |
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the taxing unit publishes the notice in a newspaper, the] taxing |
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unit must also post the notice prominently on the home page of the |
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Internet website of the taxing unit from the date the notice is |
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first provided [published] until the public hearing is concluded. |
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SECTION 5. Section 26.061(c), Tax Code, is amended to read |
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as follows: |
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(c) In addition to including the information described by |
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Subsection (b), the notice must include the information described |
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by Sections [Section] 26.062 and 26.0621. |
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SECTION 6. The heading to Section 26.062, Tax Code, is |
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amended to read as follows: |
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Sec. 26.062. ADDITIONAL INFORMATION REGARDING TAXES |
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IMPOSED ON PROPERTIES TO BE INCLUDED IN TAX RATE NOTICE. |
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SECTION 7. Chapter 26, Tax Code, is amended by adding |
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Section 26.0621 to read as follows: |
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Sec. 26.0621. ADDITIONAL INFORMATION REGARDING TAX |
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COLLECTIONS TO BE INCLUDED IN TAX RATE NOTICE. (a) In this |
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section: |
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(1) "Adjusted collection rate" for a taxing unit means |
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the rate computed by subtracting one from the product of: |
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(A) the sum of one and the population growth |
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rate; and |
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(B) the sum of one and the inflation rate. |
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(2) "Adjusted tax collections" for a taxing unit means |
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an amount equal to the product of: |
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(A) the amount of property tax revenue collected |
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by the taxing unit in the preceding tax year; and |
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(B) the sum of one and the adjusted collection |
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rate for the taxing unit. |
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(3) "Consumer price index" means the average over a |
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calendar year of the index that the comptroller considers to most |
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accurately report changes in the purchasing power of the dollar for |
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consumers in this state. |
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(4) "Inflation rate" means the amount, expressed in |
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decimal form rounded to the nearest thousandth, computed by |
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determining the percentage change in the consumer price index for |
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the preceding calendar year as compared to the consumer price index |
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for the calendar year preceding that calendar year. |
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(5) "Population growth rate" means the rate of growth |
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of a taxing unit's population during the preceding tax year, |
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expressed in decimal form rounded to the nearest thousandth, |
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determined by the taxing unit using the most recent population |
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estimates available from the United States Census Bureau or, if the |
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United States Census Bureau does not publish population estimates |
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for the taxing unit, other reliable data sources or estimation |
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methods determined by the taxing unit. |
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(b) The comptroller shall determine the inflation rate that |
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must be used by a taxing unit to make the computation required by |
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this section and publish the rate in the Texas Register each year on |
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July 1 or as soon thereafter as practicable. |
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(c) In addition to the information described by Section |
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26.06(b-1), (b-2), or (b-3) or 26.061, as applicable, a taxing unit |
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must include in the notice required by that provision one of the |
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following statements that accurately describes the effect of the |
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proposed tax rate: |
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(1) "If (name of taxing unit) adopts the proposed tax |
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rate, (name of taxing unit) will collect (estimated dollar amount |
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of property tax revenue to be collected in the current tax year) in |
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the (current tax year) tax year as compared to (dollar amount of |
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property tax revenue collected in the preceding tax year) in the |
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(preceding tax year) tax year. The amount of property tax revenue |
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collected by (name of taxing unit) will increase by (estimated |
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dollar amount of increase) in the (current tax year) tax year, which |
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is a (insert percentage increase) percent increase from the amount |
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collected in the (preceding tax year) tax year. In the (preceding |
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tax year) tax year, the population of (name of taxing unit) changed |
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by (population growth rate for taxing unit expressed as a |
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percentage) percent. Inflation in the state was (inflation rate |
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expressed as a percentage) percent. If (name of taxing unit) |
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adjusted the amount of property tax revenue it collected in the |
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(preceding tax year) tax year only to account for population change |
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adjusted by inflation, (name of taxing unit) would collect |
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(adjusted tax collections for taxing unit) in the (current tax |
|
year) tax year."; |
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(2) "If (name of taxing unit) adopts the proposed tax |
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rate, (name of taxing unit) will collect (estimated dollar amount |
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of property tax revenue to be collected in the current tax year) in |
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the (current tax year) tax year as compared to (dollar amount of |
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property tax revenue collected in the preceding tax year) in the |
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(preceding tax year) tax year. The amount of property tax revenue |
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collected by (name of taxing unit) will decrease by (estimated |
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dollar amount of decrease) in the (current tax year) tax year, which |
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is a (insert percentage decrease) percent decrease from the amount |
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collected in the (preceding tax year) tax year. In the (preceding |
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tax year) tax year, the population of (name of taxing unit) changed |
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by (population growth rate for taxing unit expressed as a |
|
percentage) percent. Inflation in the state was (inflation rate |
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expressed as a percentage) percent. If (name of taxing unit) |
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adjusted the amount of property tax revenue it collected in the |
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(preceding tax year) tax year only to account for population change |
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adjusted by inflation, (name of taxing unit) would collect |
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(adjusted tax collections for taxing unit) in the (current tax |
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year) tax year."; or |
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(3) "If (name of taxing unit) adopts the proposed tax |
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rate, (name of taxing unit) will collect (estimated dollar amount |
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of property tax revenue to be collected in the current tax year) in |
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the (current tax year) tax year, which is the same amount of |
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property tax revenue collected by (name of taxing unit) in the |
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(preceding tax year) tax year. In the (preceding tax year) tax |
|
year, the population of (name of taxing unit) changed by |
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(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 |
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year only to account for population change adjusted by inflation, |
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(name of taxing unit) would collect (adjusted tax collections for |
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taxing unit) in the (current tax year) tax year." |
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SECTION 8. Section 26.17, Tax Code, is amended by adding |
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Subsection (b-1) to read as follows: |
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(b-1) In this subsection, "adjusted tax collections," |
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"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 |
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include, with respect to each property that is listed on the |
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appraisal roll for the appraisal district, the following statement |
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for each taxing unit in which the property is located: |
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"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)." |
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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)." |
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(b) Notice of the hearing [shall be]: |
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(1) may be published at least once in a newspaper |
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having general circulation in the district at least seven days |
|
before the date of the hearing; and [or] |
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(2) shall be mailed to each owner of taxable property |
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in the district, at the address for notice shown on the most |
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recently certified tax roll of the district, at least 10 days before |
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the date of the hearing. |
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SECTION 10. The changes in law made by this Act apply only |
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to an ad valorem tax year that begins on or after the effective date |
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of this Act. |
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SECTION 11. This Act takes effect January 1, 2026. |