| |
| |
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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of the voter-approval tax rate of |
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certain taxing units and the manner in which a proposed ad valorem |
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tax rate that exceeds the voter-approval tax rate is approved by the |
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|
voters. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 41, Election Code, is |
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|
amended by adding Section 41.0051 to read as follows: |
|
|
Sec. 41.0051. ELECTION TO INCREASE AD VALOREM TAX RATE. (a) |
|
|
An election to approve an increase in an ad valorem tax rate shall |
|
|
be held on the November uniform election date. |
|
|
(b) Notwithstanding Section 41.0011, an election described |
|
|
by Subsection (a) may not be held as an emergency election under |
|
|
that section. |
|
|
(c) If a law outside this code requires an election |
|
|
described by Subsection (a) to be held on a date other than the |
|
|
November uniform election date, the authority administering the |
|
|
election shall set the election date to comply with this section. |
|
|
SECTION 2. Sections 281.124(d) and (f), Health and Safety |
|
|
Code, are amended to read as follows: |
|
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(d) If at least 60 percent [a majority] of the votes cast in |
|
|
the election favor the proposition, the tax rate for the specified |
|
|
tax year is the rate approved by the voters, and that rate is not |
|
|
subject to Section 26.07, Tax Code. The board shall adopt the tax |
|
|
rate as provided by Chapter 26, Tax Code. |
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|
(f) Notwithstanding any other law, if at least 60 percent [a |
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|
majority] of the votes cast in the election favor the proposition, a |
|
|
governing body with approval authority over the district's budget |
|
|
or tax rate may not disapprove the tax rate approved by the voters |
|
|
or disapprove the budget based solely on the tax rate approved by |
|
|
the voters. |
|
|
SECTION 3. Section 1101.254(f), Special District Local Laws |
|
|
Code, is amended to read as follows: |
|
|
(f) This section does not affect the applicability of |
|
|
Section 26.07, Tax Code, to the district's tax rate, except that if |
|
|
at least 60 percent of the district voters approve a tax rate |
|
|
increase under this section, Section 26.07, Tax Code, does not |
|
|
apply to the tax rate for that year. |
|
|
SECTION 4. Section 3828.157, Special District Local Laws |
|
|
Code, is amended to read as follows: |
|
|
Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE |
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|
PROVISIONS. Sections 26.04, [26.042,] 26.05, and 26.07, [and |
|
|
26.075,] Tax Code, do not apply to a tax imposed under Section |
|
|
3828.153 or 3828.156. |
|
|
SECTION 5. Section 8876.152(a), Special District Local Laws |
|
|
Code, is amended to read as follows: |
|
|
(a) Sections 26.04, [26.042,] 26.05, 26.06, 26.061, and |
|
|
26.07, [and 26.075,] Tax Code, do not apply to a tax imposed by the |
|
|
district. |
|
|
SECTION 6. Section 26.04(c), Tax Code, is amended to read as |
|
|
follows: |
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(c) After the assessor for the taxing unit submits the |
|
|
appraisal roll for the taxing unit to the governing body of the |
|
|
taxing unit as required by Subsection (b), an officer or employee |
|
|
designated by the governing body shall calculate the no-new-revenue |
|
|
tax rate and the voter-approval tax rate for the taxing unit, where: |
|
|
(1) "No-new-revenue tax rate" means a rate expressed |
|
|
in dollars per $100 of taxable value calculated according to the |
|
|
following formula: |
|
|
NO-NEW-REVENUE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY |
|
|
LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE) |
|
|
; and |
|
|
(2) "Voter-approval tax rate" means a rate expressed |
|
|
in dollars per $100 of taxable value calculated according to the |
|
|
following [applicable] formula: |
|
|
[(A) for a special taxing unit:] |
|
|
VOTER-APPROVAL TAX RATE = [(]NO-NEW-REVENUE MAINTENANCE AND |
|
|
OPERATIONS RATE [x 1.08)] + CURRENT DEBT RATE |
|
|
[; or |
|
|
[(B) for a taxing unit other than a special taxing |
|
|
unit: |
|
|
[VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND |
|
|
OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT |
|
|
RATE)] |
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|
SECTION 7. Sections 26.041(a), (b), and (c), Tax Code, are |
|
|
amended to read as follows: |
|
|
(a) In the first year in which an additional sales and use |
|
|
tax is required to be collected, the no-new-revenue tax rate and |
|
|
voter-approval tax rate for the taxing unit are calculated |
|
|
according to the following formulas: |
|
|
NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - |
|
|
LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW |
|
|
PROPERTY VALUE)] - SALES TAX GAIN RATE |
|
|
and |
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|
VOTER-APPROVAL TAX RATE [FOR SPECIAL TAXING UNIT] |
|
|
= [(]NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE [x |
|
|
1.08)] + [(]CURRENT DEBT RATE - SALES TAX GAIN RATE[) |
|
|
[or |
|
|
[VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER |
|
|
THAN SPECIAL TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE |
|
|
AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + |
|
|
UNUSED INCREMENT RATE - SALES TAX GAIN RATE)] |
|
|
where "sales tax gain rate" means a number expressed in dollars per |
|
|
$100 of taxable value, calculated by dividing the revenue that will |
|
|
be generated by the additional sales and use tax in the following |
|
|
year as calculated under Subsection (d) by the current total value. |
|
|
(b) Except as provided by Subsections (a) and (c), in a year |
|
|
in which a taxing unit imposes an additional sales and use tax, the |
|
|
voter-approval tax rate for the taxing unit is calculated according |
|
|
to the following formula, regardless of whether the taxing unit |
|
|
levied a property tax in the preceding year: |
|
|
VOTER-APPROVAL TAX RATE [FOR SPECIAL TAXING UNIT] |
|
|
= [[(]LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE |
|
|
[x 1.08)] / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] |
|
|
+ (CURRENT DEBT RATE - SALES TAX REVENUE RATE) |
|
|
[or |
|
|
[VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER |
|
|
THAN SPECIAL TAXING UNIT = [(LAST YEAR'S MAINTENANCE |
|
|
AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE |
|
|
- NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED |
|
|
INCREMENT RATE - SALES TAX REVENUE RATE)] |
|
|
where "last 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, and |
|
|
"sales tax revenue rate" means a number expressed in dollars per |
|
|
$100 of taxable value, calculated by dividing the revenue that will |
|
|
be generated by the additional sales and use tax in the current year |
|
|
as calculated under Subsection (d) by the current total value. |
|
|
(c) In a year in which a taxing unit that has been imposing |
|
|
an additional sales and use tax ceases to impose an additional sales |
|
|
and use tax, the no-new-revenue tax rate and voter-approval tax |
|
|
rate for the taxing unit are calculated according to the following |
|
|
formulas: |
|
|
NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY - |
|
|
LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW |
|
|
PROPERTY VALUE)] + SALES TAX LOSS RATE |
|
|
and |
|
|
VOTER-APPROVAL TAX RATE [FOR SPECIAL TAXING UNIT] |
|
|
= [[(]LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE |
|
|
[x 1.08)] / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] |
|
|
+ CURRENT DEBT RATE |
|
|
[or |
|
|
[VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER |
|
|
THAN SPECIAL TAXING UNIT = [(LAST YEAR'S MAINTENANCE |
|
|
AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE |
|
|
- NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED |
|
|
INCREMENT RATE)] |
|
|
where "sales tax loss rate" means a number expressed in dollars per |
|
|
$100 of taxable value, calculated by dividing the amount of sales |
|
|
and use tax revenue generated in the last four quarters for which |
|
|
the information is available by the current total value and "last |
|
|
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 8. Sections 26.06(b-1) and (b-3), Tax Code, are |
|
|
amended to read as follows: |
|
|
(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 |
|
|
notice must contain a statement in the following form: |
|
|
"NOTICE OF PUBLIC HEARING ON TAX INCREASE |
|
|
"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 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 60 percent [If a majority] of the voters |
|
|
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 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 60 |
|
|
percent [If a majority] of the voters 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 9. Sections 26.07(b) and (d), Tax Code, are amended |
|
|
to read as follows: |
|
|
(b) If the governing body of a [special] taxing unit [or a |
|
|
municipality with a population of 30,000 or more] adopts a tax rate |
|
|
that exceeds the taxing unit's voter-approval tax rate, [or the |
|
|
governing body of a taxing unit other than a special taxing unit or |
|
|
a municipality with a population of less than 30,000 regardless of |
|
|
whether it is a special taxing unit adopts a tax rate that exceeds |
|
|
the greater of the taxing unit's voter-approval tax rate or de |
|
|
minimis rate,] the registered voters of the taxing unit at an |
|
|
election held for that purpose must determine whether to approve |
|
|
the adopted tax rate. |
|
|
(d) If at least 60 percent [a majority] of the votes cast in |
|
|
the election favor the proposition, the tax rate for the current |
|
|
year is the rate that was adopted by the governing body. |
|
|
SECTION 10. Section 26.08(c), Tax Code, is amended to read |
|
|
as follows: |
|
|
(c) If at least 60 percent [a majority] of the votes cast in |
|
|
the election favor the proposition, the tax rate for the current |
|
|
year is the rate that was adopted by the governing body. |
|
|
SECTION 11. Sections 31.12(a) and (c), Tax Code, as amended |
|
|
by S.B. 850, Acts of the 89th Legislature, Regular Session, 2025, |
|
|
and 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)[, |
|
|
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 12. 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 13. Section 49.057, Water Code, is amended by |
|
|
amending Subsection (b) and adding Subsection (j) to read as |
|
|
follows: |
|
|
(b) The board shall adopt an annual budget. The board of a |
|
|
developed district[, as defined by Section 49.23602,] shall include |
|
|
as an appendix to the budget the district's: |
|
|
(1) audited financial statements; |
|
|
(2) bond transcripts; and |
|
|
(3) engineer's reports required by Section 49.106. |
|
|
(j) In this section, "developed district" means a district |
|
|
that has financed, completed, and issued bonds to pay for all land, |
|
|
works, improvements, facilities, plants, equipment, and appliances |
|
|
necessary to serve at least 95 percent of the projected build-out of |
|
|
the district in accordance with the purposes for its creation or the |
|
|
purposes authorized by the constitution, this code, or any other |
|
|
law. |
|
|
SECTION 14. 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 15. 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 16. 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. |
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The notice must: |
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(1) contain a statement in substantially the following |
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form: |
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"NOTICE OF PUBLIC HEARING ON TAX RATE |
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"The (name of the district) will hold a public hearing on a |
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|
proposed tax rate for the tax year (year of tax levy) on (date and |
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|
time) at (meeting place). Your individual taxes may increase at a |
|
|
greater or lesser rate, or even decrease, depending on the tax rate |
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|
that is adopted and on the change in the taxable value of your |
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|
property in relation to the change in taxable value of all other |
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|
property. The change in the taxable value of your property in |
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|
relation to the change in the taxable value of all other property |
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|
determines the distribution of the tax burden among all property |
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|
owners. |
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|
"Visit Texas.gov/PropertyTaxes to find a link to your local |
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|
property tax database on which you can easily access information |
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|
regarding your property taxes, including information about |
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|
proposed tax rates and scheduled public hearings of each entity |
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|
that taxes your property. |
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|
"(Names of all board members and, if a vote was taken, an |
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|
indication of how each voted on the proposed tax rate and an |
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|
indication of any absences.)"; |
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|
(2) contain the following information: |
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|
(A) the district's total adopted tax rate for the |
|
|
preceding year and the proposed tax rate, expressed as an amount per |
|
|
$100; |
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|
(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; |
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|
(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; |
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|
(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 |
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|
(G) if the proposed combined debt service, |
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|
operation and maintenance, and contract tax rate requires [or |
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|
authorizes] an election to approve [or reduce] the tax rate, [as |
|
|
applicable,] a description of the purpose of the proposed tax |
|
|
increase; |
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|
(3) contain a statement in substantially the following |
|
|
form[, as applicable: |
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|
[(A) if the district is a district described by |
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|
Section 49.23601]: |
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|
"NOTICE OF VOTE ON TAX RATE |
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|
"If the district adopts a combined debt service, operation |
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|
and maintenance, and contract tax rate that would result in the |
|
|
taxes on the average residence homestead increasing from the |
|
|
preceding year [by more than 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: |
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|
["NOTICE OF VOTE ON TAX RATE |
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|
["If the district adopts a combined debt service, operation |
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|
and maintenance, and contract tax rate that would result in the |
|
|
taxes on the average residence homestead increasing by more than |
|
|
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 |
|
|
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 17. The heading to Section 49.23601, Water Code, is |
|
|
amended to read as follows: |
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|
Sec. 49.23601. AUTOMATIC ELECTION TO APPROVE TAX RATE [FOR |
|
|
LOW TAX RATE DISTRICTS]. |
|
|
SECTION 18. 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 [1.08 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 [1.08 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 19. The following provisions are repealed: |
|
|
(1) Section 45.0032(d), Education Code; |
|
|
(2) Section 120.007(d), Local Government Code; |
|
|
(3) Sections 26.012(8-a) and (19), 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; |
|
|
(9) Section 49.23601(b), Water Code; |
|
|
(10) Section 49.23602, Water Code; and |
|
|
(11) Section 49.23603, Water Code. |
|
|
SECTION 20. This Act applies only to ad valorem taxes |
|
|
imposed for an ad valorem tax year that begins on or after the |
|
|
effective date of this Act. |
|
|
SECTION 21. This Act takes effect January 1, 2026. |