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A BILL TO BE ENTITLED
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AN ACT
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relating to a limit on political subdivision expenditures and the |
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adoption of ad valorem tax rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. LIMIT ON ANNUAL EXPENDITURES |
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SECTION 1.01. Chapter 140, Local Government Code, is |
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amended by adding Section 140.015 to read as follows: |
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Sec. 140.015. LIMIT ON ANNUAL EXPENDITURES. (a) In this |
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section: |
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(1) "Consumer price index" means the average over a |
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calendar year of the index a political subdivision making a |
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calculation under Subsection (d) considers to most accurately |
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report changes in the purchasing power of the dollar for consumers |
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in this state. |
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(2) "Disaster relief cost" means the total amount of a |
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political subdivision's share of the cost associated with the |
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following services provided during a disaster declared by the |
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president of the United States or the governor during the current |
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calendar year: |
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(A) the removal of debris or wreckage in the |
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political subdivision, as determined by an estimate: |
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(i) if the disaster is declared by the |
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president of the United States, made under 42 U.S.C. Section 5173; |
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or |
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(ii) if the disaster is declared by the |
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governor but not by the president of the United States, made by the |
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political subdivision using, to the extent practicable, the methods |
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used to make a federal estimate under 42 U.S.C. Section 5173; and |
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(B) essential assistance as determined by: |
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(i) if the disaster was declared by the |
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president of the United States, a federal estimate; or |
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(ii) if the disaster was declared by the |
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governor but not by the president of the United States, an estimate |
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made by the political subdivision using, to the extent practicable, |
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the methods used to make a federal estimate described by |
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Subparagraph (i). |
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(3) "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 |
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applicable to the political subdivision making a calculation under |
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Subsection (d) for the preceding calendar year as compared to the |
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consumer price index for the calendar year preceding that calendar |
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year. |
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(4) "Political subdivision" means a county, |
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municipality, school district, junior college district, hospital |
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district, other special district, or other subdivision of state |
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government. |
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(5) "Population growth rate" means the rate of growth |
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of a political subdivision's population during the preceding |
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calendar year, expressed in decimal form rounded to the nearest |
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thousandth, determined by the political subdivision using the most |
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recent population estimates available from the United States Census |
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Bureau or, if the United States Census Bureau does not publish |
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population estimates for the political subdivision, other reliable |
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data sources or estimation methods determined by the political |
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subdivision. |
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(b) This section applies only to a political subdivision |
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that is authorized by law to impose an ad valorem tax or issue |
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bonds. |
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(c) Except as provided by Subsection (e), a political |
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subdivision's total expenditures from all available sources of |
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revenue in a fiscal year may not exceed the greater of: |
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(1) the political subdivision's total expenditures |
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from all available sources of revenue in the preceding fiscal year; |
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or |
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(2) an amount determined by multiplying: |
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(A) the political subdivision's total |
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expenditures from all available sources of revenue in the preceding |
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fiscal year; and |
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(B) the sum of one and the rate most recently |
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determined by the political subdivision under Subsection (d). |
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(d) Not later than January 31 of each year, a political |
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subdivision shall calculate and post on an Internet website |
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maintained by the political subdivision a rate equal to the product |
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of the population growth rate and the inflation rate using a form |
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prescribed by the comptroller. |
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(e) A political subdivision's total expenditures from all |
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available sources of local revenue in a fiscal year may exceed the |
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amount described by Subsection (c) if at least two-thirds of the |
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political subdivision's voters approve the additional expenditures |
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for that fiscal year at an election called for that purpose and held |
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on a uniform election date. |
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(f) For purposes of this section: |
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(1) a grant, donation, or gift is not considered an |
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available source of revenue; and |
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(2) a disaster relief cost is not considered an |
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expenditure. |
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(g) The attorney general may bring an action in Travis |
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County or a county in which a political subdivision is wholly or |
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partially located to enforce this section. |
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(h) In an action under Subsection (g), the attorney general |
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may seek: |
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(1) injunctive relief to prohibit the political |
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subdivision from violating this section; |
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(2) a writ of mandamus compelling the political |
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subdivision to comply with this section; or |
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(3) a declaratory judgment determining the rights and |
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obligations of the political subdivision under this section. |
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(i) A registered voter of a political subdivision may bring |
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an action against the political subdivision in a county in which the |
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political subdivision is wholly or partly located for a violation |
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of this section. |
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(j) In an action under Subsection (i), a registered voter of |
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a political subdivision may seek injunctive relief to prohibit the |
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political subdivision from violating this section. |
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(k) A court may award court costs and reasonable and |
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necessary attorney's fees to the prevailing party in an action |
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under Subsection (i). |
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ARTICLE 2. ADOPTION OF AD VALOREM TAX RATES |
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SECTION 2.01. Sections 281.124(d) and (f), Health and |
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Safety Code, are amended to read as follows: |
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(d) If at least two-thirds [a majority] of the registered |
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voters in the district cast a vote in [votes cast in the election] |
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favor of the proposition, the tax rate for the specified tax year is |
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the rate approved by the voters, and that rate is not subject to |
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Section 26.07, Tax Code. The board shall adopt the tax rate as |
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provided by Chapter 26, Tax Code. |
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(f) Notwithstanding any other law, if at least two-thirds [a |
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majority] of the registered voters in the district cast a vote in |
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[votes cast in the election] favor of the proposition, a governing |
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body with approval authority over the district's budget or tax rate |
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may not disapprove the tax rate approved by the voters or disapprove |
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the budget based solely on the tax rate approved by the voters. |
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SECTION 2.02. Section 1101.254(f), Special District Local |
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Laws Code, is amended to read as follows: |
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(f) This section does not affect the applicability of |
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Section 26.07, Tax Code, to the district's tax rate, except that if |
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at least two-thirds of the registered voters in the district |
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[voters] approve a tax rate increase under this section, Section |
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26.07, Tax Code, does not apply to the tax rate for that year. |
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SECTION 2.03. Section 3828.157, Special District Local Laws |
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Code, is amended to read as follows: |
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Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE |
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PROVISIONS. Sections 26.04, [26.042,] 26.05, and 26.07, [and |
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26.075,] Tax Code, do not apply to a tax imposed under Section |
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3828.153 or 3828.156. |
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SECTION 2.04. Section 8876.152(a), Special District Local |
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Laws Code, is amended to read as follows: |
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(a) Sections 26.04, [26.042,] 26.05, 26.06, 26.061, and |
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26.07, [and 26.075,] Tax Code, do not apply to a tax imposed by the |
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district. |
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SECTION 2.05. Section 26.04(c), Tax Code, is amended to |
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read as follows: |
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(c) After the assessor for the taxing unit submits the |
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appraisal roll for the taxing unit to the governing body of the |
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taxing unit as required by Subsection (b), an officer or employee |
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designated by the governing body shall calculate the no-new-revenue |
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tax rate and the voter-approval tax rate for the taxing unit, where: |
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(1) "No-new-revenue tax rate" means a rate expressed |
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in dollars per $100 of taxable value calculated according to the |
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following formula: |
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NO-NEW-REVENUE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY |
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LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE) |
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; and |
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(2) "Voter-approval tax rate" means a rate expressed |
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in dollars per $100 of taxable value calculated according to the |
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following applicable formula: |
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(A) for a special taxing unit: |
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VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND |
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OPERATIONS RATE x 1.06 [1.08]) + CURRENT DEBT RATE |
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; or |
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(B) for a taxing unit other than a special taxing |
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unit: |
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VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND |
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OPERATIONS RATE x 1.02 [1.035]) + [(]CURRENT DEBT RATE [+ UNUSED |
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INCREMENT RATE)] |
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SECTION 2.06. Sections 26.041(a), (b), and (c), Tax Code, |
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are amended to read as follows: |
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(a) In the first year in which an additional sales and use |
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tax is required to be collected, the no-new-revenue tax rate and |
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voter-approval tax rate for the taxing unit are calculated |
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according to the following formulas: |
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NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY |
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LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN |
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RATE |
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and |
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VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = |
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(NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x 1.06 [1.08]) + |
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(CURRENT DEBT RATE - SALES TAX GAIN RATE) |
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or |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL |
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TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE x |
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1.02 [1.035]) + (CURRENT DEBT RATE [+ UNUSED INCREMENT RATE] - SALES |
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TAX GAIN RATE) |
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where "sales tax gain rate" means a number expressed in dollars per |
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$100 of taxable value, calculated by dividing the revenue that will |
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be generated by the additional sales and use tax in the following |
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year as calculated under Subsection (d) by the current total value. |
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(b) Except as provided by Subsections (a) and (c), in a year |
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in which a taxing unit imposes an additional sales and use tax, the |
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voter-approval tax rate for the taxing unit is calculated according |
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to the following formula, regardless of whether the taxing unit |
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levied a property tax in the preceding year: |
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VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = [(LAST |
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YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.06 [1.08]) / (CURRENT |
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TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX |
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REVENUE RATE) |
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or |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL |
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TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x |
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1.02 [1.035]) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + |
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(CURRENT DEBT RATE [+ UNUSED INCREMENT RATE] - SALES TAX REVENUE |
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RATE) |
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where "last year's maintenance and operations expense" means the |
|
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amount spent for maintenance and operations from property tax and |
|
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additional sales and use tax revenues in the preceding year, and |
|
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"sales tax revenue rate" means a number expressed in dollars per |
|
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$100 of taxable value, calculated by dividing the revenue that will |
|
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be generated by the additional sales and use tax in the current year |
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as calculated under Subsection (d) by the current total value. |
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(c) In a year in which a taxing unit that has been imposing |
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an additional sales and use tax ceases to impose an additional sales |
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and use tax, the no-new-revenue tax rate and voter-approval tax |
|
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rate for the taxing unit are calculated according to the following |
|
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formulas: |
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NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY |
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LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS |
|
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RATE |
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and |
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VOTER-APPROVAL TAX RATE FOR SPECIAL TAXING UNIT = [(LAST |
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YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.06 [1.08]) / (CURRENT |
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TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE |
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or |
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VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL |
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TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x |
|
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1.02 [1.035]) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + |
|
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[(]CURRENT DEBT RATE [+ UNUSED INCREMENT RATE)] |
|
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where "sales tax loss rate" means a number expressed in dollars per |
|
|
$100 of taxable value, calculated by dividing the amount of sales |
|
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and use tax revenue generated in the last four quarters for which |
|
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the information is available by the current total value and "last |
|
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year's maintenance and operations expense" means the amount spent |
|
|
for maintenance and operations from property tax and additional |
|
|
sales and use tax revenues in the preceding year. |
|
|
SECTION 2.07. Section 26.05, Tax Code, is amended by adding |
|
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Subsection (e-2) to read as follows: |
|
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(e-2) In addition to the relief provided by Subsection (e), |
|
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a person that owns taxable property in the taxing unit and that has |
|
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a reasonable belief that the taxing unit has not complied with the |
|
|
requirements of this section or Section 26.04 may submit a |
|
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complaint to the attorney general. If the attorney general |
|
|
determines that the taxing unit has not complied with the |
|
|
requirements of this section or Section 26.04, the attorney general |
|
|
may seek declaratory and injunctive relief, including by filing a |
|
|
petition for a writ of mandamus, to compel the taxing unit to comply |
|
|
with the requirements of this section or Section 26.04. An action |
|
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brought under this subsection must be filed in Travis County or a |
|
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county in which any part of the taxing unit is located. |
|
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SECTION 2.08. Sections 26.06(b-1) and (b-3), Tax Code, are |
|
|
amended to read as follows: |
|
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(b-1) If the proposed tax rate exceeds the no-new-revenue |
|
|
tax rate and the voter-approval tax rate of the taxing unit, the |
|
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notice must contain a statement in the following form: |
|
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"NOTICE OF PUBLIC HEARING ON TAX INCREASE |
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"PROPOSED TAX RATE $__________ per $100 |
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"NO-NEW-REVENUE TAX RATE $__________ per $100 |
|
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"VOTER-APPROVAL TAX RATE $__________ per $100 |
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"The no-new-revenue tax rate is the tax rate for the (current |
|
|
tax year) tax year that will raise the same amount of property tax |
|
|
revenue for (name of taxing unit) from the same properties in both |
|
|
the (preceding tax year) tax year and the (current tax year) tax |
|
|
year. |
|
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"The voter-approval tax rate is the highest tax rate that |
|
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(name of taxing unit) may adopt without holding an election to seek |
|
|
voter approval of the rate. |
|
|
"The proposed tax rate is greater than the no-new-revenue tax |
|
|
rate. This means that (name of taxing unit) is proposing to |
|
|
increase property taxes for the (current tax year) tax year. |
|
|
"A public hearing on the proposed tax rate will be held on |
|
|
(date and time) at (meeting place). |
|
|
"The proposed tax rate is also greater than the |
|
|
voter-approval tax rate. If (name of taxing unit) adopts the |
|
|
proposed tax rate, (name of taxing unit) is required to hold an |
|
|
election so that the voters may accept or reject the proposed tax |
|
|
rate. Unless at least two-thirds [If a majority] of the registered |
|
|
voters in the taxing unit accept [reject] the proposed tax rate, the |
|
|
tax rate of the (name of taxing unit) will be the voter-approval tax |
|
|
rate. The election will be held on (date of election). You may |
|
|
contact the (name of office responsible for administering the |
|
|
election) for information about voting locations. The hours of |
|
|
voting on election day are (voting hours). |
|
|
"Your taxes owed under any of the tax rates mentioned above |
|
|
can be calculated as follows: |
|
|
"Property tax amount = tax rate x taxable value of your |
|
|
property / 100 |
|
|
"(Names of all members of the governing body, showing how |
|
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each voted on the proposal to consider the tax increase or, if one |
|
|
or more were absent, indicating the absences.) |
|
|
"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. |
|
|
"The 86th Texas Legislature modified the manner in which the |
|
|
voter-approval tax rate is calculated to limit the rate of growth of |
|
|
property taxes in the state." |
|
|
(b-3) If the proposed tax rate does not exceed the |
|
|
no-new-revenue tax rate but exceeds the voter-approval tax rate of |
|
|
the taxing unit, the notice must contain a statement in the |
|
|
following form: |
|
|
"NOTICE OF PUBLIC HEARING ON TAX RATE |
|
|
"PROPOSED TAX RATE $__________ per $100 |
|
|
"NO-NEW-REVENUE TAX RATE $__________ per $100 |
|
|
"VOTER-APPROVAL TAX RATE $__________ per $100 |
|
|
"The no-new-revenue tax rate is the tax rate for the (current |
|
|
tax year) tax year that will raise the same amount of property tax |
|
|
revenue for (name of taxing unit) from the same properties in both |
|
|
the (preceding tax year) tax year and the (current tax year) tax |
|
|
year. |
|
|
"The voter-approval tax rate is the highest tax rate that |
|
|
(name of taxing unit) may adopt without holding an election to seek |
|
|
voter approval of the rate. |
|
|
"The proposed tax rate is not greater than the no-new-revenue |
|
|
tax rate. This means that (name of taxing unit) is not proposing to |
|
|
increase property taxes for the (current tax year) tax year. |
|
|
"A public hearing on the proposed tax rate will be held on |
|
|
(date and time) at (meeting place). |
|
|
"The proposed tax rate is greater than the voter-approval tax |
|
|
rate. If (name of taxing unit) adopts the proposed tax rate, (name |
|
|
of taxing unit) is required to hold an election so that the voters |
|
|
may accept or reject the proposed tax rate. Unless at least |
|
|
two-thirds [If a majority] of the registered voters in the taxing |
|
|
unit accept [reject] the proposed tax rate, the tax rate of the |
|
|
(name of taxing unit) will be the voter-approval tax rate. The |
|
|
election will be held on (date of election). You may contact the |
|
|
(name of office responsible for administering the election) for |
|
|
information about voting locations. The hours of voting on |
|
|
election day are (voting hours). |
|
|
"Your taxes owed under any of the tax rates mentioned above |
|
|
can be calculated as follows: |
|
|
"Property tax amount = tax rate x taxable value of your |
|
|
property / 100 |
|
|
"(Names of all members of the governing body, showing how |
|
|
each voted on the proposal to consider the tax rate or, if one or |
|
|
more were absent, indicating the absences.) |
|
|
"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. |
|
|
"The 86th Texas Legislature modified the manner in which the |
|
|
voter-approval tax rate is calculated to limit the rate of growth of |
|
|
property taxes in the state." |
|
|
SECTION 2.09. Section 26.07(d), Tax Code, is amended to |
|
|
read as follows: |
|
|
(d) If at least two-thirds [a majority] of the registered |
|
|
voters in the taxing unit cast a vote in [votes cast in the |
|
|
election] favor of the proposition, the tax rate for the current |
|
|
year is the rate that was adopted by the governing body. |
|
|
SECTION 2.10. Sections 31.12(a) and (c), Tax Code, as |
|
|
amended by S.B. 850, Acts of the 89th Legislature, Regular Session, |
|
|
2025, as effective September 1, 2025, are amended to read as |
|
|
follows: |
|
|
(a) A refund of a tax provided by Section 11.35(j), |
|
|
11.431(b), 11.436(b), 11.438(c), 11.439(b), 23.1243(d), 23.48(d), |
|
|
23.60(d), 26.05(e), 26.07(g), [26.075(k),] 26.08(d-2), 26.1115(c), |
|
|
26.112(b), 26.1125(b), 26.1127(b), 26.15(f), 31.061(e), 31.071(c), |
|
|
31.11, 31.111, or 31.112(c)(3) must be paid not later than the 60th |
|
|
day after the date the liability for the refund arises as determined |
|
|
under this section. |
|
|
(c) For purposes of this section, liability for a refund |
|
|
arises: |
|
|
(1) if the refund is required by Section 11.35(j), on |
|
|
the date the collector for the taxing unit learns the refund is |
|
|
required; |
|
|
(2) if the refund is required by Section 11.431(b), |
|
|
11.436(b), 11.438(c), or 11.439(b), on the date the chief appraiser |
|
|
notifies the collector for the taxing unit of the approval of the |
|
|
applicable exemption; |
|
|
(3) if the refund is required by Section 23.1243(d), |
|
|
on the date the chief appraiser notifies the collector for the |
|
|
taxing unit of the amount of tax to be refunded; |
|
|
(4) if the refund is required by Section 23.48(d), |
|
|
23.60(d), 26.1115(c), 26.112(b), 26.1125(b), or 26.1127(b), on the |
|
|
date the assessor notifies the collector for the taxing unit of the |
|
|
decrease in the person's tax liability; |
|
|
(5) if the refund is required by Section 26.05(e), on |
|
|
the date the action to enjoin the collection of taxes imposed by the |
|
|
taxing unit is finally determined; |
|
|
(6) if the refund is required by Section 26.07(g)[, or |
|
|
26.075(k),] or 26.08(d-2), on the date the assessor for the taxing |
|
|
unit mails the corrected tax bills under Section 26.07(f)[, |
|
|
26.075(j),] or 26.08(d-1), as applicable; |
|
|
(7) if the refund is required by Section 26.15(f): |
|
|
(A) for a correction to the tax roll made under |
|
|
Section 26.15(b), on the date the change in the tax roll is |
|
|
certified to the assessor for the taxing unit under Section 25.25; |
|
|
or |
|
|
(B) for a correction to the tax roll made under |
|
|
Section 26.15(c), on the date the change in the tax roll is ordered |
|
|
by the governing body of the taxing unit; |
|
|
(8) if the refund is required by Section 31.061(e), on |
|
|
the date the taxing unit determines that the amount credited under |
|
|
Section 31.061(d) exceeds the amount due to the taxing unit; |
|
|
(9) if the refund is required by Section 31.071(c), on |
|
|
the date the challenge, protest, or appeal is finally determined; |
|
|
(10) if the refund is required by Section 31.11, on the |
|
|
date the auditor for the taxing unit determines that the payment was |
|
|
erroneous or excessive; |
|
|
(11) if the refund is required by Section 31.111, on |
|
|
the date the collector for the taxing unit determines that the |
|
|
payment was erroneous; or |
|
|
(12) if the refund is required by Section |
|
|
31.112(c)(3), on the date the agreement described by Section |
|
|
31.112(c) is made. |
|
|
SECTION 2.11. Section 33.08(b), Tax Code, is amended to |
|
|
read as follows: |
|
|
(b) The governing body of the taxing unit or appraisal |
|
|
district, in the manner required by law for official action, may |
|
|
provide that taxes that become delinquent on or after June 1 under |
|
|
Section [26.075(j),] 26.15(e), 31.03, 31.031, 31.032, 31.033, |
|
|
31.04, or 42.42 incur an additional penalty to defray costs of |
|
|
collection. The amount of the penalty may not exceed the amount of |
|
|
the compensation specified in the applicable contract with an |
|
|
attorney under Section 6.30 to be paid in connection with the |
|
|
collection of the delinquent taxes. |
|
|
SECTION 2.12. Section 49.107(g), Water Code, is amended to |
|
|
read as follows: |
|
|
(g) Sections 26.04, [26.042,] 26.05, 26.061, and 26.07, |
|
|
[and 26.075,] Tax Code, do not apply to a tax levied and collected |
|
|
under this section or an ad valorem tax levied and collected for the |
|
|
payment of the interest on and principal of bonds issued by a |
|
|
district. |
|
|
SECTION 2.13. Section 49.108(f), Water Code, is amended to |
|
|
read as follows: |
|
|
(f) Sections 26.04, [26.042,] 26.05, 26.061, and 26.07, |
|
|
[and 26.075,] Tax Code, do not apply to a tax levied and collected |
|
|
for payments made under a contract approved in accordance with this |
|
|
section. |
|
|
SECTION 2.14. Section 49.236(a), Water Code, is amended to |
|
|
read as follows: |
|
|
(a) Before the board adopts an ad valorem tax rate for the |
|
|
district for debt service, operation and maintenance purposes, or |
|
|
contract purposes, the board shall give notice of each meeting of |
|
|
the board at which the adoption of a tax rate will be considered. |
|
|
The notice must: |
|
|
(1) contain a statement in substantially the following |
|
|
form: |
|
|
"NOTICE OF PUBLIC HEARING ON TAX RATE |
|
|
"The (name of the district) will hold a public hearing on a |
|
|
proposed tax rate for the tax year (year of tax levy) on (date and |
|
|
time) at (meeting place). Your individual taxes may increase at a |
|
|
greater or lesser rate, or even decrease, depending on the tax rate |
|
|
that is adopted and on the change in the taxable value of your |
|
|
property in relation to the change in taxable value of all other |
|
|
property. The change in the taxable value of your property in |
|
|
relation to the change in the taxable value of all other property |
|
|
determines the distribution of the tax burden among all property |
|
|
owners. |
|
|
"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. |
|
|
"(Names of all board members and, if a vote was taken, an |
|
|
indication of how each voted on the proposed tax rate and an |
|
|
indication of any absences.)"; |
|
|
(2) contain the following information: |
|
|
(A) the district's total adopted tax rate for the |
|
|
preceding year and the proposed tax rate, expressed as an amount per |
|
|
$100; |
|
|
(B) the difference, expressed as an amount per |
|
|
$100 and as a percent increase or decrease, as applicable, in the |
|
|
proposed tax rate compared to the adopted tax rate for the preceding |
|
|
year; |
|
|
(C) the average appraised value of a residence |
|
|
homestead in the district in the preceding year and in the current |
|
|
year; the district's total homestead exemption, other than an |
|
|
exemption available only to disabled persons or persons 65 years of |
|
|
age or older, applicable to that appraised value in each of those |
|
|
years; and the average taxable value of a residence homestead in the |
|
|
district in each of those years, disregarding any homestead |
|
|
exemption available only to disabled persons or persons 65 years of |
|
|
age or older; |
|
|
(D) the amount of tax that would have been |
|
|
imposed by the district in the preceding year on a residence |
|
|
homestead appraised at the average appraised value of a residence |
|
|
homestead in that year, disregarding any homestead exemption |
|
|
available only to disabled persons or persons 65 years of age or |
|
|
older; |
|
|
(E) the amount of tax that would be imposed by the |
|
|
district in the current year on a residence homestead appraised at |
|
|
the average appraised value of a residence homestead in that year, |
|
|
disregarding any homestead exemption available only to disabled |
|
|
persons or persons 65 years of age or older, if the proposed tax |
|
|
rate is adopted; |
|
|
(F) the difference between the amounts of tax |
|
|
calculated under Paragraphs (D) and (E), expressed in dollars and |
|
|
cents and described as the annual percentage increase or decrease, |
|
|
as applicable, in the tax to be imposed by the district on the |
|
|
average residence homestead in the district in the current year if |
|
|
the proposed tax rate is adopted; and |
|
|
(G) if the proposed combined debt service, |
|
|
operation and maintenance, and contract tax rate requires or |
|
|
authorizes an election to approve or reduce the tax rate, as |
|
|
applicable, a description of the purpose of the proposed tax |
|
|
increase; |
|
|
(3) contain a statement in substantially the following |
|
|
form, as applicable: |
|
|
(A) if the district is a district described by |
|
|
Section 49.23601: |
|
|
"NOTICE OF VOTE ON TAX RATE |
|
|
"If the district adopts a combined debt service, operation |
|
|
and maintenance, and contract tax rate that would result in the |
|
|
taxes on the average residence homestead increasing by more than |
|
|
six [eight] percent, an election must be held to determine whether |
|
|
to approve the operation and maintenance tax rate under Section |
|
|
49.23601, Water Code."; |
|
|
(B) if the district is a district described by |
|
|
Section 49.23602: |
|
|
"NOTICE OF VOTE ON TAX RATE |
|
|
"If the district adopts a combined debt service, operation |
|
|
and maintenance, and contract tax rate that would result in the |
|
|
taxes on the average residence homestead increasing by more than |
|
|
two [3.5] percent, an election must be held to determine whether to |
|
|
approve the operation and maintenance tax rate under Section |
|
|
49.23602, Water Code."; or |
|
|
(C) if the district is a district described by |
|
|
Section 49.23603: |
|
|
"NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE TAX RATE |
|
|
"If the district adopts a combined debt service, operation |
|
|
and maintenance, and contract tax rate that would result in the |
|
|
taxes on the average residence homestead increasing by more than |
|
|
six [eight] percent, the qualified voters of the district by |
|
|
petition may require that an election be held to determine whether |
|
|
to reduce the operation and maintenance tax rate to the |
|
|
voter-approval tax rate under Section 49.23603, Water Code."; and |
|
|
(4) include the following statement: "The 86th Texas |
|
|
Legislature modified the manner in which the voter-approval tax |
|
|
rate is calculated to limit the rate of growth of property taxes in |
|
|
the state.". |
|
|
SECTION 2.15. Sections 49.23601(a) and (c), Water Code, are |
|
|
amended to read as follows: |
|
|
(a) In this section, "voter-approval tax rate" means the |
|
|
rate equal to the sum of the following tax rates for the district: |
|
|
(1) the current year's debt service tax rate; |
|
|
(2) the current year's contract tax rate; and |
|
|
(3) the operation and maintenance tax rate that would |
|
|
impose 1.06 [1.08] times the amount of the operation and |
|
|
maintenance tax imposed by the district in the preceding year on a |
|
|
residence homestead appraised at the average appraised value of a |
|
|
residence homestead in the district in that year, disregarding any |
|
|
homestead exemption available only to disabled persons or persons |
|
|
65 years of age or older. |
|
|
(c) If the board of a district adopts a combined debt |
|
|
service, contract, and operation and maintenance tax rate that |
|
|
would impose more than 1.06 [1.08] times the amount of tax imposed |
|
|
by the district in the preceding year on a residence homestead |
|
|
appraised at the average appraised value of a residence homestead |
|
|
in the district in that year, disregarding any homestead exemption |
|
|
available only to disabled persons or persons 65 years of age or |
|
|
older, an election must be held in accordance with the procedures |
|
|
provided by Sections 26.07(c)-(g), Tax Code, to determine whether |
|
|
to approve the adopted tax rate. If the adopted tax rate is not |
|
|
approved at the election, the district's tax rate is the |
|
|
voter-approval tax rate. |
|
|
SECTION 2.16. Sections 49.23602(a)(2) and (4), Water Code, |
|
|
are amended to read as follows: |
|
|
(2) "Mandatory tax election rate" means the rate |
|
|
[equal to the sum of the following tax rates for the district: |
|
|
[(A) the rate] that would impose 1.02 [1.035] |
|
|
times the amount of tax imposed by the district in the preceding |
|
|
year on a residence homestead appraised at the average appraised |
|
|
value of a residence homestead in the district in that year, |
|
|
disregarding any homestead exemption available only to disabled |
|
|
persons or persons 65 years of age or older[; and |
|
|
[(B) the unused increment rate]. |
|
|
(4) "Voter-approval tax rate" means the rate equal to |
|
|
the sum of the following tax rates for the district: |
|
|
(A) the current year's debt service tax rate; |
|
|
(B) the current year's contract tax rate; and |
|
|
(C) the operation and maintenance tax rate that |
|
|
would impose 1.02 [1.035] times the amount of the operation and |
|
|
maintenance tax imposed by the district in the preceding year on a |
|
|
residence homestead appraised at the average appraised value of a |
|
|
residence homestead in the district in that year, disregarding any |
|
|
homestead exemption available only to disabled persons or persons |
|
|
65 years of age or older[; and |
|
|
[(D) the unused increment rate]. |
|
|
SECTION 2.17. Sections 49.23603(a) and (c), Water Code, are |
|
|
amended to read as follows: |
|
|
(a) In this section, "voter-approval tax rate" means the |
|
|
rate equal to the sum of the following tax rates for the district: |
|
|
(1) the current year's debt service tax rate; |
|
|
(2) the current year's contract tax rate; and |
|
|
(3) the operation and maintenance tax rate that would |
|
|
impose 1.06 [1.08] times the amount of the operation and |
|
|
maintenance tax imposed by the district in the preceding year on a |
|
|
residence homestead appraised at the average appraised value of a |
|
|
residence homestead in the district in that year, disregarding any |
|
|
homestead exemption available only to disabled persons or persons |
|
|
65 years of age or older. |
|
|
(c) If the board of a district adopts a combined debt |
|
|
service, contract, and operation and maintenance tax rate that |
|
|
would impose more than 1.06 [1.08] times the amount of tax imposed |
|
|
by the district in the preceding year on a residence homestead |
|
|
appraised at the average appraised value of a residence homestead |
|
|
in the district in that year, disregarding any homestead exemption |
|
|
available only to disabled persons or persons 65 years of age or |
|
|
older, the qualified voters of the district by petition may require |
|
|
that an election be held to determine whether to reduce the tax rate |
|
|
adopted for the current year to the voter-approval tax rate in |
|
|
accordance with the procedures provided by Section [Sections 26.075 |
|
|
and] 26.081, Tax Code. |
|
|
SECTION 2.18. The following provisions are repealed: |
|
|
(1) Section 45.0032(d), Education Code; |
|
|
(2) Section 120.007(d), Local Government Code; |
|
|
(3) Section 26.012(8-a), Tax Code; |
|
|
(4) Section 26.013, Tax Code; |
|
|
(5) Section 26.042, Tax Code; |
|
|
(6) Section 26.0501(c), Tax Code; |
|
|
(7) Section 26.063, Tax Code; |
|
|
(8) Section 26.075, Tax Code; and |
|
|
(9) Section 49.23602(a)(3), Water Code. |
|
|
ARTICLE 3. TRANSITION AND EFFECTIVE DATE |
|
|
SECTION 3.01. Section 140.015, Local Government Code, as |
|
|
added by this Act, applies only to a fiscal year of a political |
|
|
subdivision that begins on or after December 1, 2025. |
|
|
SECTION 3.02. As soon as practicable after the effective |
|
|
date of this Act, the comptroller of public accounts shall |
|
|
prescribe a form for the publication of the information required by |
|
|
Section 140.015(d), Local Government Code, as added by this Act. |
|
|
SECTION 3.03. The changes in law made by Article 2 of this |
|
|
Act apply only to ad valorem taxes imposed for an ad valorem tax |
|
|
year that begins on or after the effective date of this Act. |
|
|
SECTION 3.04. This Act takes effect January 1, 2026. |