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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of certain ad valorem tax rates of a |
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taxing unit and the manner in which a proposed ad valorem tax rate |
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that exceeds the voter-approval tax rate is approved; making |
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conforming changes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 48.202(f), Education Code, is amended to |
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read as follows: |
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(f) For a school year in which the dollar amount guaranteed |
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level of state and local funds per weighted student per cent of tax |
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effort ("GL") under Subsection (a-1)(2) exceeds the dollar amount |
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guaranteed level of state and local funds per weighted student per |
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cent of tax effort ("GL") under Subsection (a-1)(2) for the |
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preceding school year, a school district shall reduce the |
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district's tax rate under Section 45.0032(b)(2) for the tax year |
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that corresponds to that school year to a rate that results in the |
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amount of state and local funds per weighted student per cent of tax |
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effort available to the district at the dollar amount guaranteed |
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level for the preceding school year. A school district is not |
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entitled to the amount equal to the increase of revenue described by |
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this subsection for the school year for which the district must |
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reduce the district's tax rate. For [Unless Section 26.042(e), Tax |
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Code, applies to the district, for] a tax year in which a district |
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must reduce the district's tax rate under this subsection, the |
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district may not increase the district's maintenance and operations |
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tax rate to a rate that exceeds the maximum maintenance and |
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operations tax rate permitted under Section 45.003(d) or (f), as |
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applicable, minus the reduction of tax effort required under this |
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subsection. This subsection does not apply if the amount of state |
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funds appropriated for a school year specifically excludes the |
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amount necessary to provide the dollar amount guaranteed level of |
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state and local funds per weighted student per cent of tax effort |
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under Subsection (a-1)(2). |
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SECTION 2. 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 3. Section 8876.152(a), Special District Local Laws |
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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 4. Section 26.012(18), Tax Code, is amended to read |
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as follows: |
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(18) "No-new-revenue maintenance and operations rate" |
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means a rate expressed in dollars per $100 of taxable value |
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calculated as follows: |
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(A) for a taxing unit other than a school |
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district, the rate calculated according to the following formula: |
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NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE = (LAST |
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YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST YEAR'S JUNIOR COLLEGE |
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LEVY) / (CURRENT TOTAL VALUE [- NEW PROPERTY VALUE]) |
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; or |
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(B) for a school district, the rate calculated as |
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provided by Section 44.004(c)(5)(A)(ii)(a), Education Code. |
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SECTION 5. Section 26.04(c), Tax Code, is amended to read as |
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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 1.08)] + 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 1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT |
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RATE)] |
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SECTION 6. Sections 26.041(a), (b), (c), (g), and (h), Tax |
|
|
Code, 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 [- |
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LOST PROPERTY LEVY]) / (CURRENT TOTAL VALUE [- NEW |
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PROPERTY VALUE])] - SALES TAX GAIN 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 |
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1.08)] + [(]CURRENT DEBT RATE - SALES TAX GAIN RATE[) |
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[or |
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[VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER |
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THAN SPECIAL TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE |
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AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + |
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UNUSED INCREMENT RATE - SALES TAX GAIN RATE)] |
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|
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 |
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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] |
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= [[(]LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE |
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[x 1.08)] / (CURRENT TOTAL VALUE [- NEW PROPERTY |
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VALUE])] + (CURRENT DEBT RATE - SALES TAX REVENUE RATE) |
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[or |
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[VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER |
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THAN SPECIAL TAXING UNIT = [(LAST YEAR'S MAINTENANCE |
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AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE |
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- NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED |
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INCREMENT RATE - SALES TAX REVENUE 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 |
|
|
$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 |
|
|
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 |
|
|
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 [- |
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LOST PROPERTY LEVY]) / (CURRENT TOTAL VALUE [- NEW |
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PROPERTY VALUE])] + SALES TAX LOSS RATE |
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and |
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VOTER-APPROVAL TAX RATE [FOR SPECIAL TAXING UNIT] |
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= [[(]LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE |
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[x 1.08)] / (CURRENT TOTAL VALUE [- NEW PROPERTY |
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VALUE])] + CURRENT DEBT RATE |
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|
[or |
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[VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER |
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THAN SPECIAL TAXING UNIT = [(LAST YEAR'S MAINTENANCE |
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AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE |
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- NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED |
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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. |
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|
(g) If the rate of the additional sales and use tax is |
|
|
increased, the designated officer or employee shall make two |
|
|
projections, in the manner provided by Subsection (d), of the |
|
|
revenue generated by the additional sales and use tax in the |
|
|
following year. The first projection must take into account the |
|
|
increase and the second projection must not take into account the |
|
|
increase. The designated officer or employee shall then subtract |
|
|
the amount of the result of the second projection from the amount of |
|
|
the result of the first projection to determine the revenue |
|
|
generated as a result of the increase in the additional sales and |
|
|
use tax. In the first year in which an additional sales and use tax |
|
|
is increased, the no-new-revenue tax rate for the taxing unit is the |
|
|
no-new-revenue tax rate before the increase minus a number the |
|
|
numerator of which is the revenue generated as a result of the |
|
|
increase in the additional sales and use tax, as determined under |
|
|
this subsection, and the denominator of which is the current total |
|
|
value [minus the new property value]. |
|
|
(h) If the rate of the additional sales and use tax is |
|
|
decreased, the designated officer or employee shall make two |
|
|
projections, in the manner provided by Subsection (d), of the |
|
|
revenue generated by the additional sales and use tax in the |
|
|
following year. The first projection must take into account the |
|
|
decrease and the second projection must not take into account the |
|
|
decrease. The designated officer or employee shall then subtract |
|
|
the amount of the result of the first projection from the amount of |
|
|
the result of the second projection to determine the revenue lost as |
|
|
a result of the decrease in the additional sales and use tax. In |
|
|
the first year in which an additional sales and use tax is |
|
|
decreased, the no-new-revenue tax rate for the taxing unit is the |
|
|
no-new-revenue tax rate before the decrease plus a number the |
|
|
numerator of which is the revenue lost as a result of the decrease |
|
|
in the additional sales and use tax, as determined under this |
|
|
subsection, and the denominator of which is the current total value |
|
|
[minus the new property value]. |
|
|
SECTION 7. Sections 26.044(a) and (b), Tax Code, are |
|
|
amended to read as follows: |
|
|
(a) The first time that a county adopts a tax rate after |
|
|
September 1, 1991, in which the state criminal justice mandate |
|
|
applies to the county, the no-new-revenue maintenance and operation |
|
|
rate for the county is increased by the rate calculated according to |
|
|
the following formula: |
|
|
(State Criminal Justice Mandate) / (Current Total |
|
|
Value [- New Property Value]) |
|
|
(b) In the second and subsequent years that a county adopts |
|
|
a tax rate, if the amount spent by the county for the state criminal |
|
|
justice mandate increased over the previous year, the |
|
|
no-new-revenue maintenance and operation rate for the county is |
|
|
increased by the rate calculated according to the following |
|
|
formula: |
|
|
(This Year's State Criminal Justice Mandate - |
|
|
Previous Year's State Criminal Justice Mandate) / |
|
|
(Current Total Value [- New Property Value]) |
|
|
SECTION 8. Sections 26.0441(a) and (b), Tax Code, are |
|
|
amended to read as follows: |
|
|
(a) In the first tax year in which a taxing unit adopts a tax |
|
|
rate after January 1, 2000, and in which the enhanced minimum |
|
|
eligibility standards for indigent health care established under |
|
|
Section 61.006, Health and Safety Code, apply to the taxing unit, |
|
|
the no-new-revenue maintenance and operations rate for the taxing |
|
|
unit is increased by the rate computed according to the following |
|
|
formula: |
|
|
Amount of Increase = Enhanced Indigent Health |
|
|
Care Expenditures / (Current Total Value [- New |
|
|
Property Value]) |
|
|
(b) In each subsequent tax year, if the taxing unit's |
|
|
enhanced indigent health care expenses exceed the amount of those |
|
|
expenses for the preceding year, the no-new-revenue maintenance and |
|
|
operations rate for the taxing unit is increased by the rate |
|
|
computed according to the following formula: |
|
|
Amount of Increase = (Current Tax Year's Enhanced |
|
|
Indigent Health Care Expenditures - Preceding Tax |
|
|
Year's Indigent Health Care Expenditures) / (Current |
|
|
Total Value [- New Property Value]) |
|
|
SECTION 9. Section 26.0442(b), Tax Code, is amended to read |
|
|
as follows: |
|
|
(b) If a county's indigent defense compensation |
|
|
expenditures exceed the amount of those expenditures for the |
|
|
preceding tax year, the no-new-revenue maintenance and operations |
|
|
rate for the county is increased by the lesser of the rates computed |
|
|
according to the following formulas: |
|
|
(Current Tax Year's Indigent Defense |
|
|
Compensation Expenditures - Preceding Tax Year's |
|
|
Indigent Defense Compensation Expenditures) / |
|
|
(Current Total Value [- New Property Value]) |
|
|
or |
|
|
(Preceding Tax Year's Indigent Defense |
|
|
Compensation Expenditures x 0.05) / (Current Total |
|
|
Value [- New Property Value]) |
|
|
SECTION 10. Section 26.0443(b), Tax Code, is amended to |
|
|
read as follows: |
|
|
(b) If a county's or municipality's eligible county hospital |
|
|
expenditures exceed the amount of those expenditures for the |
|
|
preceding tax year, the no-new-revenue maintenance and operations |
|
|
rate for the county or municipality, as applicable, is increased by |
|
|
the lesser of the rates computed according to the following |
|
|
formulas: |
|
|
(Current Tax Year's Eligible County Hospital |
|
|
Expenditures - Preceding Tax Year's Eligible County |
|
|
Hospital Expenditures) / (Current Total Value [- New |
|
|
Property Value]) |
|
|
or |
|
|
(Preceding Tax Year's Eligible County Hospital |
|
|
Expenditures x 0.08) / (Current Total Value [- New |
|
|
Property Value]) |
|
|
SECTION 11. Section 26.0444(b), Tax Code, is amended to |
|
|
read as follows: |
|
|
(b) The no-new-revenue maintenance and operations rate for |
|
|
a defunding municipality is decreased by the rate computed |
|
|
according to the following formula: |
|
|
Municipal Public Safety Expenditure Adjustment / |
|
|
(Current Total Value [- New Property Value]) |
|
|
SECTION 12. Section 26.07(b), Tax Code, is 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. |
|
|
SECTION 13. Sections 31.12(a) and (b), Tax Code, are |
|
|
amended to read as follows: |
|
|
(a) If a refund of a tax provided by Section 11.431(b), |
|
|
26.07(g), [26.075(k),] 26.15(f), 31.11, 31.111, or 31.112 is paid |
|
|
on or before the 60th day after the date the liability for the |
|
|
refund arises, no interest is due on the amount refunded. If not |
|
|
paid on or before that 60th day, the amount of the tax to be refunded |
|
|
accrues interest at a rate of one percent for each month or part of a |
|
|
month that the refund is unpaid, beginning with the date on which |
|
|
the liability for the refund arises. |
|
|
(b) For purposes of this section, liability for a refund |
|
|
arises: |
|
|
(1) if the refund is required by Section 11.431(b), on |
|
|
the date the chief appraiser notifies the collector for the taxing |
|
|
unit of the approval of the late homestead exemption; |
|
|
(2) if the refund is required by Section 26.07(g) [or |
|
|
26.075(k)], on the date the results of the election to approve [or |
|
|
reduce] the tax rate[, as applicable,] are certified; |
|
|
(3) 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; |
|
|
(4) 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 or, if the amount of the refund exceeds the |
|
|
applicable amount specified by Section 31.11(a), on the date the |
|
|
governing body of the taxing unit approves the refund; |
|
|
(5) 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 |
|
|
(6) if the refund is required by Section 31.112, on the |
|
|
date required by Section 31.112(d) or (e), as applicable. |
|
|
SECTION 14. 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 15. 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 16. 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 17. 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 18. 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. |
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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 |
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preceding year and the proposed tax rate, expressed as an amount per |
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$100; |
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(B) the difference, expressed as an amount per |
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$100 and as a percent increase or decrease, as applicable, in the |
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proposed tax rate compared to the adopted tax rate for the preceding |
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year; |
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(C) the average appraised value of a residence |
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homestead in the district in the preceding year and in the current |
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year; the district's total homestead exemption, other than an |
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exemption available only to disabled persons or persons 65 years of |
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age or older, applicable to that appraised value in each of those |
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years; and the average taxable value of a residence homestead in the |
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district in each of those years, disregarding any homestead |
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exemption available only to disabled persons or persons 65 years of |
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age or older; |
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(D) the amount of tax that would have been |
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imposed by the district in the preceding year on a residence |
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homestead appraised at the average appraised value of a residence |
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homestead in that year, disregarding any homestead exemption |
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available only to disabled persons or persons 65 years of age or |
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older; |
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(E) the amount of tax that would be imposed by the |
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district in the current year on a residence homestead appraised at |
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the average appraised value of a residence homestead in that year, |
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disregarding any homestead exemption available only to disabled |
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persons or persons 65 years of age or older, if the proposed tax |
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rate is adopted; |
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(F) the difference between the amounts of tax |
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calculated under Paragraphs (D) and (E), expressed in dollars and |
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cents and described as the annual percentage increase or decrease, |
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as applicable, in the tax to be imposed by the district on the |
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average residence homestead in the district in the current year if |
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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 |
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applicable,] a description of the purpose of the proposed tax |
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increase; |
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(3) contain a statement in substantially the following |
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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 |
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taxes on the average residence homestead increasing from the |
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preceding year [by more than eight percent], an election must be |
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held to determine whether to approve the operation and maintenance |
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tax rate under Section 49.23601, Water Code."; |
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[(B) if the district is a district described by |
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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 |
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taxes on the average residence homestead increasing by more than |
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3.5 percent, an election must be held to determine whether to |
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approve the operation and maintenance tax rate under Section |
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49.23602, Water Code."; or |
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[(C) if the district is a district described by |
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Section 49.23603: |
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["NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE 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 |
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taxes on the average residence homestead increasing by more than |
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eight percent, the qualified voters of the district by petition may |
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require that an election be held to determine whether to reduce the |
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operation and maintenance tax rate to the voter-approval tax rate |
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under Section 49.23603, Water Code.";] and |
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(4) include the following statement: "The 86th Texas |
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Legislature modified the manner in which the voter-approval tax |
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rate is calculated to limit the rate of growth of property taxes in |
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the state.". |
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SECTION 19. The heading to Section 49.23601, Water Code, is |
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amended to read as follows: |
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Sec. 49.23601. AUTOMATIC ELECTION TO APPROVE TAX RATE [FOR |
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LOW TAX RATE DISTRICTS]. |
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SECTION 20. Sections 49.23601(a) and (c), Water Code, are |
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amended to read as follows: |
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(a) In this section, "voter-approval tax rate" means the |
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rate equal to the sum of the following tax rates for the district: |
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(1) the current year's debt service tax rate; |
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(2) the current year's contract tax rate; and |
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(3) the operation and maintenance tax rate that would |
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impose [1.08 times] the amount of [the] operation and maintenance |
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tax imposed by the district in the preceding year on a residence |
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homestead appraised at the average appraised value of a residence |
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homestead in the district in that year, disregarding any homestead |
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exemption available only to disabled persons or persons 65 years of |
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age or older. |
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(c) If the board of a district adopts a combined debt |
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service, contract, and operation and maintenance tax rate that |
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would impose more than [1.08 times] the amount of tax imposed by the |
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district in the preceding year on a residence homestead appraised |
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at the average appraised value of a residence homestead in the |
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district in that year, disregarding any homestead exemption |
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available only to disabled persons or persons 65 years of age or |
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older, an election must be held in accordance with the procedures |
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provided by Sections 26.07(c)-(g), Tax Code, to determine whether |
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to approve the adopted tax rate. If the adopted tax rate is not |
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approved at the election, the district's tax rate is the |
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voter-approval tax rate. |
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SECTION 21. The following provisions are repealed: |
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(1) Section 45.0032(d), Education Code; |
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(2) Section 120.007(d), Local Government Code; |
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(3) Sections 26.012(8-a), (15), and (19), Tax Code; |
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(4) Section 26.013, Tax Code; |
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(5) Section 26.042, Tax Code; |
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(6) Section 26.0501(c), Tax Code; |
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(7) Section 26.063, Tax Code; |
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(8) Section 26.075, Tax Code; |
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(9) Section 49.23601(b), Water Code; |
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(10) Section 49.23602, Water Code; and |
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(11) Section 49.23603, Water Code. |
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SECTION 22. This Act applies only to ad valorem taxes |
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imposed for an ad valorem tax year that begins on or after the |
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effective date of this Act. |
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SECTION 23. This Act takes effect January 1, 2026. |