Bill Text: TX SB1430 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to clarifying certain terminology, including terminology applicable to tax rate calculations, in relation to the ad valorem tax system.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2019-04-09 - Left pending in committee [SB1430 Detail]
Download: Texas-2019-SB1430-Introduced.html
86R13519 CBH-F | ||
By: Hancock, Bettencourt | S.B. No. 1430 |
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relating to clarifying certain terminology, including terminology | ||
applicable to tax rate calculations, in relation to the ad valorem | ||
tax system. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 42.2522(e), Education Code, is amended | ||
to read as follows: | ||
(e) The commissioner shall notify school districts as soon | ||
as practicable as to the availability of funds under this section. | ||
For purposes of computing a voter approval [ |
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under Section 26.08, Tax Code, a district shall adjust the | ||
district's tax rate limit to reflect assistance received under this | ||
section. | ||
SECTION 2. Sections 44.004(c) and (i), Education Code, are | ||
amended to read as follows: | ||
(c) The notice of public meeting to discuss and adopt the | ||
budget and the proposed tax rate may not be smaller than one-quarter | ||
page of a standard-size or a tabloid-size newspaper, and the | ||
headline on the notice must be in 18-point or larger type. Subject | ||
to Subsection (d), the notice must: | ||
(1) contain a statement in the following form: | ||
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE | ||
"The (name of school district) will hold a public meeting at | ||
(time, date, year) in (name of room, building, physical location, | ||
city, state). The purpose of this meeting is to discuss the school | ||
district's budget that will determine the tax rate that will be | ||
adopted. Public participation in the discussion is invited." The | ||
statement of the purpose of the meeting must be in bold type. In | ||
reduced type, the notice must state: "The tax rate that is | ||
ultimately adopted at this meeting or at a separate meeting at a | ||
later date may not exceed the proposed rate shown below unless the | ||
district publishes a revised notice containing the same information | ||
and comparisons set out below and holds another public meeting to | ||
discuss the revised notice."; | ||
(2) contain a section entitled "Comparison of Proposed | ||
Budget with Last Year's Budget," which must show the difference, | ||
expressed as a percent increase or decrease, as applicable, in the | ||
amounts budgeted for the preceding fiscal year and the amount | ||
budgeted for the fiscal year that begins in the current tax year for | ||
each of the following: | ||
(A) maintenance and operations; | ||
(B) debt service; and | ||
(C) total expenditures; | ||
(3) contain a section entitled "Total Appraised Value | ||
and Total Taxable Value," which must show the total appraised value | ||
and the total taxable value of all property and the total appraised | ||
value and the total taxable value of new property taxable by the | ||
district in the preceding tax year and the current tax year as | ||
calculated under Section 26.04, Tax Code; | ||
(4) contain a statement of the total amount of the | ||
outstanding and unpaid bonded indebtedness of the school district; | ||
(5) contain a section entitled "Comparison of Proposed | ||
Rates with Last Year's Rates," which must: | ||
(A) show in rows the tax rates described by | ||
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of | ||
property, for columns entitled "Maintenance & Operations," | ||
"Interest & Sinking Fund," and "Total," which is the sum of | ||
"Maintenance & Operations" and "Interest & Sinking Fund": | ||
(i) the school district's "Last Year's | ||
Rate"; | ||
(ii) the "Rate to Maintain Same Level of | ||
Maintenance & Operations Revenue & Pay Debt Service," which: | ||
(a) in the case of "Maintenance & | ||
Operations," is the tax rate that, when applied to the current | ||
taxable value for the district, as certified by the chief appraiser | ||
under Section 26.01, Tax Code, and as adjusted to reflect changes | ||
made by the chief appraiser as of the time the notice is prepared, | ||
would impose taxes in an amount that, when added to state funds to | ||
be distributed to the district under Chapter 42, would provide the | ||
same amount of maintenance and operations taxes and state funds | ||
distributed under Chapter 42 per student in average daily | ||
attendance for the applicable school year that was available to the | ||
district in the preceding school year; and | ||
(b) in the case of "Interest & Sinking | ||
Fund," is the tax rate that, when applied to the current taxable | ||
value for the district, as certified by the chief appraiser under | ||
Section 26.01, Tax Code, and as adjusted to reflect changes made by | ||
the chief appraiser as of the time the notice is prepared, and when | ||
multiplied by the district's anticipated collection rate, would | ||
impose taxes in an amount that, when added to state funds to be | ||
distributed to the district under Chapter 46 and any excess taxes | ||
collected to service the district's debt during the preceding tax | ||
year but not used for that purpose during that year, would provide | ||
the amount required to service the district's debt; and | ||
(iii) the "Proposed Rate"; | ||
(B) contain fourth and fifth columns aligned with | ||
the columns required by Paragraph (A) that show, for each row | ||
required by Paragraph (A): | ||
(i) the "Local Revenue per Student," which | ||
is computed by multiplying the district's total taxable value of | ||
property, as certified by the chief appraiser for the applicable | ||
school year under Section 26.01, Tax Code, and as adjusted to | ||
reflect changes made by the chief appraiser as of the time the | ||
notice is prepared, by the total tax rate, and dividing the product | ||
by the number of students in average daily attendance in the | ||
district for the applicable school year; and | ||
(ii) the "State Revenue per Student," which | ||
is computed by determining the amount of state aid received or to be | ||
received by the district under Chapters 42, 43, and 46 and dividing | ||
that amount by the number of students in average daily attendance in | ||
the district for the applicable school year; and | ||
(C) contain an asterisk after each calculation | ||
for "Interest & Sinking Fund" and a footnote to the section that, in | ||
reduced type, states "The Interest & Sinking Fund tax revenue is | ||
used to pay for bonded indebtedness on construction, equipment, or | ||
both. The bonds, and the tax rate necessary to pay those bonds, | ||
were approved by the voters of this district."; | ||
(6) contain a section entitled "Comparison of Proposed | ||
Levy with Last Year's Levy on Average Residence," which must: | ||
(A) show in rows the information described by | ||
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns | ||
entitled "Last Year" and "This Year": | ||
(i) "Average Market Value of Residences," | ||
determined using the same group of residences for each year; | ||
(ii) "Average Taxable Value of Residences," | ||
determined after taking into account the limitation on the | ||
appraised value of residences under Section 23.23, Tax Code, and | ||
after subtracting all homestead exemptions applicable in each year, | ||
other than exemptions available only to disabled persons or persons | ||
65 years of age or older or their surviving spouses, and using the | ||
same group of residences for each year; | ||
(iii) "Last Year's Rate Versus Proposed | ||
Rate per $100 Value"; and | ||
(iv) "Taxes Due on Average Residence," | ||
determined using the same group of residences for each year; and | ||
(B) contain the following information: "Increase | ||
(Decrease) in Taxes" expressed in dollars and cents, which is | ||
computed by subtracting the "Taxes Due on Average Residence" for | ||
the preceding tax year from the "Taxes Due on Average Residence" for | ||
the current tax year; | ||
(7) contain the following statement in bold | ||
print: "Under state law, the dollar amount of school taxes imposed | ||
on the residence of a person 65 years of age or older or of the | ||
surviving spouse of such a person, if the surviving spouse was 55 | ||
years of age or older when the person died, may not be increased | ||
above the amount paid in the first year after the person turned 65, | ||
regardless of changes in tax rate or property value."; | ||
(8) contain the following statement in bold | ||
print: "Notice of Voter Approval Tax [ |
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highest tax rate the district can adopt before requiring voter | ||
approval at an election is (the school district voter approval tax | ||
[ |
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election will be automatically held if the district adopts a rate in | ||
excess of the voter approval tax [ |
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district voter approval tax [ |
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(9) contain a section entitled "Fund Balances," which | ||
must include the estimated amount of interest and sinking fund | ||
balances and the estimated amount of maintenance and operation or | ||
general fund balances remaining at the end of the current fiscal | ||
year that are not encumbered with or by corresponding debt | ||
obligation, less estimated funds necessary for the operation of the | ||
district before the receipt of the first payment under Chapter 42 in | ||
the succeeding school year. | ||
(i) A school district that uses a certified estimate, as | ||
authorized by Subsection (h), may adopt a budget at the public | ||
meeting designated in the notice prepared using the estimate, but | ||
the district may not adopt a tax rate before the district receives | ||
the certified appraisal roll for the district required by Section | ||
26.01(a), Tax Code. After receipt of the certified appraisal roll, | ||
the district must publish a revised notice and hold another public | ||
meeting before the district may adopt a tax rate that exceeds: | ||
(1) the rate proposed in the notice prepared using the | ||
estimate; or | ||
(2) the district's voter approval tax [ |
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determined under Section 26.08, Tax Code, using the certified | ||
appraisal roll. | ||
SECTION 3. Section 45.261(e), Education Code, is amended to | ||
read as follows: | ||
(e) Any part of a school district's tax rate attributable to | ||
producing revenue for purposes of Subsection (c)(1) is considered | ||
part of the district's: | ||
(1) current debt rate for purposes of computing a | ||
voter approval [ |
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and | ||
(2) interest and sinking fund tax rate. | ||
SECTION 4. Section 281.107(j), Health and Safety Code, is | ||
amended to read as follows: | ||
(j) The portion of the rate of ad valorem tax that is to be | ||
levied and assessed each year by or for the district that is | ||
allocated by the district to the payment of the principal of and the | ||
interest on bonds and other obligations or the maintenance of | ||
reserves therefor in accordance with this section shall be applied | ||
as a payment on current debt in calculating the current debt rate | ||
under the applicable voter approval tax rate [ |
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of Chapter 26, Tax Code. | ||
SECTION 5. The heading to Section 281.124, Health and | ||
Safety Code, is amended to read as follows: | ||
Sec. 281.124. ELECTION TO APPROVE TAX RATE IN EXCESS OF | ||
VOTER APPROVAL [ |
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SECTION 6. Sections 281.124(b), (c), (d), and (e), Health | ||
and Safety Code, are amended to read as follows: | ||
(b) The board may hold an election at which the registered | ||
voters of the district may approve a tax rate for the current tax | ||
year that exceeds the district's voter approval [ |
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for the year computed under Chapter 26, Tax Code, by a specific rate | ||
stated in dollars and cents per $100 of taxable value. | ||
(c) An election under this section must be held at least 180 | ||
days before the date on which the district's tax rate is adopted by | ||
the board. At the election, the ballot shall be prepared to permit | ||
voting for or against the proposition: "Approving the ad valorem | ||
tax rate of $ (insert total proposed tax rate) per $100 valuation in | ||
(insert district name) for the (insert current tax year) tax year, a | ||
rate that exceeds the district's voter approval [ |
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rate. The proposed ad valorem tax rate exceeds the ad valorem tax | ||
rate most recently adopted by the district by $ (insert difference | ||
between proposed and preceding year's tax rates) per $100 | ||
valuation." | ||
(d) If 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 a voter | ||
approval tax rate [ |
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Code. The board shall adopt the tax rate as provided by Chapter 26, | ||
Tax Code. | ||
(e) If the proposition is not approved as provided by | ||
Subsection (d) [ |
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district for the specified tax year that exceeds the rate that was | ||
not approved, and Section 26.07, Tax Code, applies to the adopted | ||
rate if that rate exceeds the voter approval [ |
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SECTION 7. Section 102.007(d), Local Government Code, is | ||
amended to read as follows: | ||
(d) An adopted budget must contain a cover page that | ||
includes: | ||
(1) one of the following statements in 18-point or | ||
larger type that accurately describes the adopted budget: | ||
(A) "This budget will raise more revenue from | ||
property taxes than last year's budget by an amount of (insert total | ||
dollar amount of increase), which is a (insert percentage increase) | ||
percent increase from last year's budget. The property tax revenue | ||
to be raised from new property added to the tax roll this year is | ||
(insert amount computed by multiplying the proposed tax rate by the | ||
value of new property added to the roll)."; | ||
(B) "This budget will raise less revenue from | ||
property taxes than last year's budget by an amount of (insert total | ||
dollar amount of decrease), which is a (insert percentage decrease) | ||
percent decrease from last year's budget. The property tax revenue | ||
to be raised from new property added to the tax roll this year is | ||
(insert amount computed by multiplying the proposed tax rate by the | ||
value of new property added to the roll)."; or | ||
(C) "This budget will raise the same amount of | ||
revenue from property taxes as last year's budget. The property | ||
tax revenue to be raised from new property added to the tax roll | ||
this year is (insert amount computed by multiplying the proposed | ||
tax rate by the value of new property added to the roll)."; | ||
(2) the record vote of each member of the governing | ||
body by name voting on the adoption of the budget; | ||
(3) the municipal property tax rates for the preceding | ||
fiscal year, and each municipal property tax rate that has been | ||
adopted or calculated for the current fiscal year, including: | ||
(A) the property tax rate; | ||
(B) the effective tax rate; | ||
(C) the effective maintenance and operations tax | ||
rate; | ||
(D) the voter approval [ |
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(E) the debt rate; and | ||
(4) the total amount of municipal debt obligations. | ||
SECTION 8. Section 111.008(d), Local Government Code, is | ||
amended to read as follows: | ||
(d) An adopted budget must contain a cover page that | ||
includes: | ||
(1) one of the following statements in 18-point or | ||
larger type that accurately describes the adopted budget: | ||
(A) "This budget will raise more revenue from | ||
property taxes than last year's budget by an amount of (insert total | ||
dollar amount of increase), which is a (insert percentage increase) | ||
percent increase from last year's budget. The property tax revenue | ||
to be raised from new property added to the tax roll this year is | ||
(insert amount computed by multiplying the proposed tax rate by the | ||
value of new property added to the roll)."; | ||
(B) "This budget will raise less revenue from | ||
property taxes than last year's budget by an amount of (insert total | ||
dollar amount of decrease), which is a (insert percentage decrease) | ||
percent decrease from last year's budget. The property tax revenue | ||
to be raised from new property added to the tax roll this year is | ||
(insert amount computed by multiplying the proposed tax rate by the | ||
value of new property added to the roll)."; or | ||
(C) "This budget will raise the same amount of | ||
revenue from property taxes as last year's budget. The property | ||
tax revenue to be raised from new property added to the tax roll | ||
this year is (insert amount computed by multiplying the proposed | ||
tax rate by the value of new property added to the roll)."; | ||
(2) the record vote of each member of the | ||
commissioners court by name voting on the adoption of the budget; | ||
(3) the county property tax rates for the preceding | ||
fiscal year, and each county property tax rate that has been adopted | ||
or calculated for the current fiscal year, including: | ||
(A) the property tax rate; | ||
(B) the effective tax rate; | ||
(C) the effective maintenance and operations tax | ||
rate; | ||
(D) the voter approval [ |
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(E) the debt rate; and | ||
(4) the total amount of county debt obligations. | ||
SECTION 9. Section 111.039(d), Local Government Code, is | ||
amended to read as follows: | ||
(d) An adopted budget must contain a cover page that | ||
includes: | ||
(1) one of the following statements in 18-point or | ||
larger type that accurately describes the adopted budget: | ||
(A) "This budget will raise more revenue from | ||
property taxes than last year's budget by an amount of (insert total | ||
dollar amount of increase), which is a (insert percentage increase) | ||
percent increase from last year's budget. The property tax revenue | ||
to be raised from new property added to the tax roll this year is | ||
(insert amount computed by multiplying the proposed tax rate by the | ||
value of new property added to the roll)."; | ||
(B) "This budget will raise less revenue from | ||
property taxes than last year's budget by an amount of (insert total | ||
dollar amount of decrease), which is a (insert percentage decrease) | ||
percent decrease from last year's budget. The property tax revenue | ||
to be raised from new property added to the tax roll this year is | ||
(insert amount computed by multiplying the proposed tax rate by the | ||
value of new property added to the roll)."; or | ||
(C) "This budget will raise the same amount of | ||
revenue from property taxes as last year's budget. The property | ||
tax revenue to be raised from new property added to the tax roll | ||
this year is (insert amount computed by multiplying the proposed | ||
tax rate by the value of new property added to the roll)."; | ||
(2) the record vote of each member of the | ||
commissioners court by name voting on the adoption of the budget; | ||
(3) the county property tax rates for the preceding | ||
fiscal year, and each county property tax rate that has been adopted | ||
or calculated for the current fiscal year, including: | ||
(A) the property tax rate; | ||
(B) the effective tax rate; | ||
(C) the effective maintenance and operations tax | ||
rate; | ||
(D) the voter approval [ |
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(E) the debt rate; and | ||
(4) the total amount of county debt obligations. | ||
SECTION 10. Section 111.068(c), Local Government Code, is | ||
amended to read as follows: | ||
(c) An adopted budget must contain a cover page that | ||
includes: | ||
(1) one of the following statements in 18-point or | ||
larger type that accurately describes the adopted budget: | ||
(A) "This budget will raise more revenue from | ||
property taxes than last year's budget by an amount of (insert total | ||
dollar amount of increase), which is a (insert percentage increase) | ||
percent increase from last year's budget. The property tax revenue | ||
to be raised from new property added to the tax roll this year is | ||
(insert amount computed by multiplying the proposed tax rate by the | ||
value of new property added to the roll)."; | ||
(B) "This budget will raise less revenue from | ||
property taxes than last year's budget by an amount of (insert total | ||
dollar amount of decrease), which is a (insert percentage decrease) | ||
percent decrease from last year's budget. The property tax revenue | ||
to be raised from new property added to the tax roll this year is | ||
(insert amount computed by multiplying the proposed tax rate by the | ||
value of new property added to the roll)."; or | ||
(C) "This budget will raise the same amount of | ||
revenue from property taxes as last year's budget. The property | ||
tax revenue to be raised from new property added to the tax roll | ||
this year is (insert amount computed by multiplying the proposed | ||
tax rate by the value of new property added to the roll)."; | ||
(2) the record vote of each member of the | ||
commissioners court by name voting on the adoption of the budget; | ||
(3) the county property tax rates for the preceding | ||
fiscal year, and each county property tax rate that has been adopted | ||
or calculated for the current fiscal year, including: | ||
(A) the property tax rate; | ||
(B) the effective tax rate; | ||
(C) the effective maintenance and operations tax | ||
rate; | ||
(D) the voter approval [ |
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(E) the debt rate; and | ||
(4) the total amount of county debt obligations. | ||
SECTION 11. Sections 140.010(a), (d), and (e), Local | ||
Government Code, are amended to read as follows: | ||
(a) In this section, "effective tax rate" and "voter | ||
approval [ |
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approval [ |
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applicable, as calculated under Chapter 26, Tax Code. | ||
(d) A county or municipality that proposes a property tax | ||
rate that does not exceed the lower of the effective tax rate or the | ||
voter approval [ |
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notice: | ||
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX | ||
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY) | ||
"A tax rate of $______ per $100 valuation has been proposed by the | ||
governing body of (insert name of county or municipality). | ||
PROPOSED TAX RATE $______ per $100 | ||
PRECEDING YEAR'S TAX RATE $______ per $100 | ||
EFFECTIVE TAX RATE $______ per $100 | ||
"The effective tax rate is the total tax rate needed to raise the | ||
same amount of property tax revenue for (insert name of county or | ||
municipality) from the same properties in both the (insert | ||
preceding tax year) tax year and the (insert current tax year) tax | ||
year. | ||
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS | ||
FOLLOWS: | ||
property tax amount = (rate) x (taxable value of your property) / | ||
100 | ||
"For assistance or detailed information about tax calculations, | ||
please contact: | ||
(insert name of county or municipal tax assessor-collector) | ||
(insert name of county or municipality) tax | ||
assessor-collector | ||
(insert address) | ||
(insert telephone number) | ||
(insert e-mail address) | ||
(insert Internet website address, if applicable)" | ||
(e) A county or municipality that proposes a property tax | ||
rate that exceeds the lower of the effective tax rate or the voter | ||
approval [ |
||
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX | ||
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY) | ||
"A tax rate of $_____ per $100 valuation has been proposed for | ||
adoption by the governing body of (insert name of county or | ||
municipality). This rate exceeds the lower of the effective or | ||
voter approval [ |
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public hearings be held by the governing body before adopting the | ||
proposed tax rate. The governing body of (insert name of county or | ||
municipality) proposes to use revenue attributable to the tax rate | ||
increase for the purpose of (description of purpose of increase). | ||
PROPOSED TAX RATE$______ per $100 | ||
PRECEDING YEAR'S TAX RATE$______ per $100 | ||
EFFECTIVE TAX RATE$______ per $100 | ||
VOTER APPROVAL [ |
||
"The effective tax rate is the total tax rate needed to raise the | ||
same amount of property tax revenue for (insert name of county or | ||
municipality) from the same properties in both the (insert | ||
preceding tax year) tax year and the (insert current tax year) tax | ||
year. | ||
"The voter approval [ |
||
(insert name of county or municipality) may adopt before voters are | ||
entitled to petition for an election to limit the rate that may be | ||
approved to the voter approval tax [ |
||
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS | ||
FOLLOWS: | ||
property tax amount = (rate) x (taxable value of your property) / | ||
100 | ||
"For assistance or detailed information about tax calculations, | ||
please contact: | ||
(insert name of county or municipal tax assessor-collector) | ||
(insert name of county or municipality) tax | ||
assessor-collector | ||
(insert address) | ||
(insert telephone number) | ||
(insert e-mail address) | ||
(insert Internet website address, if applicable) | ||
"You are urged to attend and express your views at the following | ||
public hearings on the proposed tax rate: | ||
First Hearing: (insert date and time) at (insert location of | ||
meeting). | ||
Second Hearing: (insert date and time) at (insert location | ||
of meeting)." | ||
SECTION 12. Sections 1063.255(a) and (d), Special District | ||
Local Laws Code, are amended to read as follows: | ||
(a) Notwithstanding Section 26.07(b)(3), Tax Code, a | ||
petition to require an election under Section 26.07, Tax Code, on | ||
reducing the district's tax rate to the voter approval [ |
||
tax rate shall be submitted to the Montgomery County elections | ||
administrator instead of to the board. | ||
(d) Notwithstanding Section 26.07(d), Tax Code, if the | ||
elections administrator certifies to the board that the petition is | ||
valid or fails to act within the time allowed, the board shall order | ||
that an election under Section 26.07, Tax Code, to determine | ||
whether to reduce the district's tax rate to the voter approval tax | ||
[ |
||
Section 26.07(d) of that code. | ||
SECTION 13. Section 1122.2522, Special District Local Laws | ||
Code, is amended to read as follows: | ||
Sec. 1122.2522. VOTER APPROVAL [ |
||
PROVISIONS APPLICABLE. (a) If in any year the board adopts a tax | ||
rate that exceeds the voter approval [ |
||
as provided by Chapter 26, Tax Code, the qualified voters of the | ||
district by petition may require that an election be held to | ||
determine whether or not to reduce the tax rate adopted by the board | ||
for that year to the voter approval [ |
||
(b) To the extent a conflict exists between this section and | ||
a provision of the Tax Code, the provision of the Tax Code prevails. | ||
SECTION 14. Section 26.012(10), Tax Code, is amended to | ||
read as follows: | ||
(10) "Excess collections" means the amount, if any, by | ||
which debt taxes collected in the preceding year exceeded the | ||
amount anticipated in the preceding year's calculation of the | ||
voter approval tax [ |
||
under Section 26.04(b) [ |
||
SECTION 15. The heading to Section 26.04, Tax Code, is | ||
amended to read as follows: | ||
Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY; | ||
EFFECTIVE AND VOTER APPROVAL [ |
||
SECTION 16. Sections 26.04(c), (d), (e), (f), (i), and (j), | ||
Tax Code, are amended to read as follows: | ||
(c) An officer or employee designated by the governing body | ||
shall calculate the effective tax rate and the voter approval | ||
[ |
||
(1) "Effective tax rate" means a rate expressed in | ||
dollars per $100 of taxable value calculated according to the | ||
following formula: | ||
EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY | ||
LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE) | ||
; and | ||
(2) "Voter approval [ |
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expressed in dollars per $100 of taxable value calculated according | ||
to the following formula: | ||
VOTER APPROVAL [ |
||
MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT | ||
RATE | ||
(d) The effective tax rate for a county is the sum of the | ||
effective tax rates calculated for each type of tax the county | ||
levies and the voter approval [ |
||
the sum of the voter approval [ |
||
each type of tax the county levies. | ||
(e) By August 7 or as soon thereafter as practicable, the | ||
designated officer or employee shall submit the rates to the | ||
governing body. The designated officer or employee [ |
||
deliver by mail to each property owner in the taxing unit or publish | ||
in a newspaper in the form prescribed by the comptroller: | ||
(1) the effective tax rate, the voter approval | ||
[ |
||
calculated; | ||
(2) the estimated amount of interest and sinking fund | ||
balances and the estimated amount of maintenance and operation or | ||
general fund balances remaining at the end of the current fiscal | ||
year that are not encumbered with or by corresponding existing debt | ||
obligation; | ||
(3) a schedule of the taxing unit's debt obligations | ||
showing: | ||
(A) the amount of principal and interest that | ||
will be paid to service the taxing unit's debts in the next year | ||
from property tax revenue, including payments of lawfully incurred | ||
contractual obligations providing security for the payment of the | ||
principal of and interest on bonds and other evidences of | ||
indebtedness issued on behalf of the taxing unit by another | ||
political subdivision and, if the taxing unit is created under | ||
Section 52, Article III, or Section 59, Article XVI, Texas | ||
Constitution, payments on debts that the taxing unit anticipates to | ||
incur in the next calendar year; | ||
(B) the amount by which taxes imposed for debt | ||
are to be increased because of the taxing unit's anticipated | ||
collection rate; and | ||
(C) the total of the amounts listed in Paragraphs | ||
(A)-(B), less any amount collected in excess of the previous year's | ||
anticipated collections certified as provided in Subsection (b); | ||
(4) the amount of additional sales and use tax revenue | ||
anticipated in calculations under Section 26.041; | ||
(5) a statement that the adoption of a tax rate equal | ||
to the effective tax rate would result in an increase or decrease, | ||
as applicable, in the amount of taxes imposed by the taxing unit as | ||
compared to last year's levy, and the amount of the increase or | ||
decrease; | ||
(6) in the year that a taxing unit calculates an | ||
adjustment under Subsection (i) or (j), a schedule that includes | ||
the following elements: | ||
(A) the name of the taxing unit discontinuing the | ||
department, function, or activity; | ||
(B) the amount of property tax revenue spent by | ||
the taxing unit listed under Paragraph (A) to operate the | ||
discontinued department, function, or activity in the 12 months | ||
preceding the month in which the calculations required by this | ||
chapter are made; and | ||
(C) the name of the taxing unit that operates a | ||
distinct department, function, or activity in all or a majority of | ||
the territory of a taxing unit that has discontinued operating the | ||
distinct department, function, or activity; and | ||
(7) in the year following the year in which a taxing | ||
unit raised its voter approval tax [ |
||
Subsection (j), a schedule that includes the following elements: | ||
(A) the amount of property tax revenue spent by | ||
the taxing unit to operate the department, function, or activity | ||
for which the taxing unit raised the voter approval tax [ |
||
rate as required by Subsection (j) for the 12 months preceding the | ||
month in which the calculations required by this chapter are made; | ||
and | ||
(B) the amount published by the taxing unit in | ||
the preceding tax year under Subdivision (6)(B). | ||
(f) If as a result of consolidation of taxing units a taxing | ||
unit includes territory that was in two or more taxing units in the | ||
preceding year, the amount of taxes imposed in each in the preceding | ||
year is combined for purposes of calculating the effective and | ||
voter approval [ |
||
(i) This subsection applies to a taxing unit that has agreed | ||
by written contract to transfer a distinct department, function, or | ||
activity to another taxing unit and discontinues operating that | ||
distinct department, function, or activity if the operation of that | ||
department, function, or activity in all or a majority of the | ||
territory of the taxing unit is continued by another existing | ||
taxing unit or by a new taxing unit. The voter approval [ |
||
tax rate of a taxing unit to which this subsection applies in the | ||
first tax year in which a budget is adopted that does not allocate | ||
revenue to the discontinued department, function, or activity is | ||
calculated as otherwise provided by this section, except that last | ||
year's levy used to calculate the effective maintenance and | ||
operations rate of the taxing unit is reduced by the amount of | ||
maintenance and operations tax revenue spent by the taxing unit to | ||
operate the department, function, or activity for the 12 months | ||
preceding the month in which the calculations required by this | ||
chapter are made and in which the taxing unit operated the | ||
discontinued department, function, or activity. If the taxing unit | ||
did not operate that department, function, or activity for the full | ||
12 months preceding the month in which the calculations required by | ||
this chapter are made, the taxing unit shall reduce last year's levy | ||
used for calculating the effective maintenance and operations rate | ||
of the taxing unit by the amount of the revenue spent in the last | ||
full fiscal year in which the taxing unit operated the discontinued | ||
department, function, or activity. | ||
(j) This subsection applies to a taxing unit that had agreed | ||
by written contract to accept the transfer of a distinct | ||
department, function, or activity from another taxing unit and | ||
operates a distinct department, function, or activity if the | ||
operation of a substantially similar department, function, or | ||
activity in all or a majority of the territory of the taxing unit | ||
has been discontinued by another taxing unit, including a dissolved | ||
taxing unit. The voter approval [ |
||
unit to which this subsection applies in the first tax year after | ||
the other taxing unit discontinued the substantially similar | ||
department, function, or activity in which a budget is adopted that | ||
allocates revenue to the department, function, or activity is | ||
calculated as otherwise provided by this section, except that last | ||
year's levy used to calculate the effective maintenance and | ||
operations rate of the taxing unit is increased by the amount of | ||
maintenance and operations tax revenue spent by the taxing unit | ||
that discontinued operating the substantially similar department, | ||
function, or activity to operate that department, function, or | ||
activity for the 12 months preceding the month in which the | ||
calculations required by this chapter are made and in which the | ||
taxing unit operated the discontinued department, function, or | ||
activity. If the taxing unit did not operate the discontinued | ||
department, function, or activity for the full 12 months preceding | ||
the month in which the calculations required by this chapter are | ||
made, the taxing unit may increase last year's levy used to | ||
calculate the effective maintenance and operations rate by an | ||
amount not to exceed the amount of property tax revenue spent by the | ||
discontinuing taxing unit to operate the discontinued department, | ||
function, or activity in the last full fiscal year in which the | ||
discontinuing taxing unit operated the department, function, or | ||
activity. | ||
SECTION 17. Sections 26.041(a), (b), (c), and (e), 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 effective tax rate and voter | ||
approval [ |
||
according to the following formulas: | ||
EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY | ||
LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - | ||
SALES TAX GAIN RATE | ||
and | ||
VOTER APPROVAL TAX [ |
||
MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT | ||
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) [ |
||
current total value. | ||
(b) Except as provided by Subsections (a) and (c) [ |
||
|
||
sales and use tax the voter approval [ |
||
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 [ |
||
MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([ |
||
CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT | ||
DEBT 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) [ |
||
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 effective tax rate and voter approval [ |
||
rate for the taxing unit are calculated according to the following | ||
formulas: | ||
EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY | ||
LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + | ||
SALES TAX LOSS RATE | ||
and | ||
VOTE APPROVAL [ |
||
MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([ |
||
CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT | ||
DEBT 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. | ||
(e) If a city that imposes an additional sales and use tax | ||
receives payments under the terms of a contract executed before | ||
January 1, 1986, in which the city agrees not to annex certain | ||
property or a certain area and the owners or lessees of the property | ||
or of property in the area agree to pay at least annually to the city | ||
an amount determined by reference to all or a percentage of the | ||
property tax rate of the city and all or a part of the value of the | ||
property subject to the agreement or included in the area subject to | ||
the agreement, the governing body, by order adopted by a majority | ||
vote of the governing body, may direct the designated officer or | ||
employee to add to the effective and voter approval [ |
||
rates the amount that, when applied to the total taxable value | ||
submitted to the governing body, would produce an amount of taxes | ||
equal to the difference between the total amount of payments for the | ||
tax year under contracts described by this subsection under the | ||
voter approval [ |
||
and the total amount of payments for the tax year that would have | ||
been obligated to the city if the city had not adopted an additional | ||
sales and use tax. | ||
SECTION 18. Sections 26.043(a) and (b), Tax Code, are | ||
amended to read as follows: | ||
(a) In the tax year in which a city has set an election on | ||
the question of whether to impose a local sales and use tax under | ||
Subchapter H, Chapter 453, Transportation Code, the officer or | ||
employee designated to make the calculations provided by Section | ||
26.04 may not make those calculations until the outcome of the | ||
election is determined. If the election is determined in favor of | ||
the imposition of the tax, the designated officer or employee | ||
[ |
||
[ |
||
the city's current total value, would impose an amount equal to the | ||
amount of property taxes budgeted in the current tax year to pay for | ||
expenses related to mass transit services. | ||
(b) In a tax year to which this section applies, a reference | ||
in this chapter to the city's effective or voter approval | ||
[ |
||
section. | ||
SECTION 19. The heading to Section 26.045, Tax Code, is | ||
amended to read as follows: | ||
Sec. 26.045. VOTER APPROVAL TAX RATE [ |
||
POLLUTION CONTROL REQUIREMENTS. | ||
SECTION 20. Sections 26.045(a), (c), and (i), Tax Code, are | ||
amended to read as follows: | ||
(a) The voter approval [ |
||
subdivision of this state is increased by the rate that, if applied | ||
to the total current value, would impose an amount of taxes equal to | ||
the amount the political subdivision will spend out of its | ||
maintenance and operation funds under Section 26.012(16) to pay for | ||
a facility, device, or method for the control of air, water, or land | ||
pollution that is necessary to meet the requirements of a permit | ||
issued by the Texas Commission on Environmental Quality. | ||
(c) To receive an adjustment to the voter approval | ||
[ |
||
shall present information to the executive director of the Texas | ||
Commission on Environmental Quality in a permit application or in a | ||
request for any exemption from a permit that would otherwise be | ||
required detailing: | ||
(1) the anticipated environmental benefits from the | ||
installation of the facility, device, or method for the control of | ||
air, water, or land pollution; | ||
(2) the estimated cost of the pollution control | ||
facility, device, or method; and | ||
(3) the purpose of the installation of the facility, | ||
device, or method, and the proportion of the installation that is | ||
pollution control property. | ||
(i) A political subdivision of the state seeking an | ||
adjustment in its voter approval [ |
||
section shall provide to its tax assessor a copy of the letter | ||
issued by the executive director of the Texas Commission on | ||
Environmental Quality under Subsection (d). The tax assessor | ||
shall accept the copy of the letter from the executive director as | ||
conclusive evidence that the facility, device, or method is used | ||
wholly or partly as pollution control property and shall adjust the | ||
voter approval [ |
||
provided for by Subsection (a). | ||
SECTION 21. Sections 26.05(d) and (g), Tax Code, are | ||
amended to read as follows: | ||
(d) The governing body of a taxing unit other than a school | ||
district may not adopt a tax rate that exceeds the lower of the | ||
voter approval [ |
||
calculated as provided by this chapter until the governing body has | ||
held two public hearings on the proposed tax rate and has otherwise | ||
complied with Section 26.06 and Section 26.065. The governing body | ||
of a taxing unit shall reduce a tax rate set by law or by vote of the | ||
electorate to the lower of the voter approval [ |
||
the effective tax rate and may not adopt a higher rate unless it | ||
first complies with Section 26.06. | ||
(g) Notwithstanding Subsection (a), the governing body of a | ||
school district that elects to adopt a tax rate before the adoption | ||
of a budget for the fiscal year that begins in the current tax year | ||
may adopt a tax rate for the current tax year before receipt of the | ||
certified appraisal roll for the school district if the chief | ||
appraiser of the appraisal district in which the school district | ||
participates has certified to the assessor for the school district | ||
an estimate of the taxable value of property in the school district | ||
as provided by Section 26.01(e). If a school district adopts a tax | ||
rate under this subsection, the effective tax rate and the voter | ||
approval [ |
||
based on the certified estimate of taxable value. | ||
SECTION 22. Sections 26.06(b), (d), and (e), Tax Code, are | ||
amended to read as follows: | ||
(b) The notice of a public hearing may not be smaller than | ||
one-quarter page of a standard-size or a tabloid-size newspaper, | ||
and the headline on the notice must be in 24-point or larger | ||
type. The notice must contain a statement in the following form: | ||
"NOTICE OF PUBLIC HEARING ON TAX INCREASE | ||
"The (name of the taxing unit) will hold two public hearings | ||
on a proposal to increase total tax revenues from properties on the | ||
tax roll in the preceding tax year by (percentage by which proposed | ||
tax rate exceeds lower of voter approval [ |
||
effective tax rate calculated under this chapter) percent. Your | ||
individual taxes may increase at a greater or lesser rate, or even | ||
decrease, depending on the change in the taxable value of your | ||
property in relation to the change in taxable value of all other | ||
property and the tax rate that is adopted. | ||
"The first public hearing will be held on (date and time) at | ||
(meeting place). | ||
"The second public hearing will be held on (date and time) at | ||
(meeting place). | ||
"(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.) | ||
"The average taxable value of a residence homestead in (name | ||
of taxing unit) last year was $____ (average taxable value of a | ||
residence homestead in the taxing unit for the preceding tax year, | ||
disregarding residence homestead exemptions available only to | ||
disabled persons or persons 65 years of age or older). Based on | ||
last year's tax rate of $____ (preceding year's adopted tax rate) | ||
per $100 of taxable value, the amount of taxes imposed last year on | ||
the average home was $____ (tax on average taxable value of a | ||
residence homestead in the taxing unit for the preceding tax year, | ||
disregarding residence homestead exemptions available only to | ||
disabled persons or persons 65 years of age or older). | ||
"The average taxable value of a residence homestead in (name | ||
of taxing unit) this year is $____ (average taxable value of a | ||
residence homestead in the taxing unit for the current tax year, | ||
disregarding residence homestead exemptions available only to | ||
disabled persons or persons 65 years of age or older). If the | ||
governing body adopts the effective tax rate for this year of $____ | ||
(effective tax rate) per $100 of taxable value, the amount of taxes | ||
imposed this year on the average home would be $____ (tax on average | ||
taxable value of a residence homestead in the taxing unit for the | ||
current tax year, disregarding residence homestead exemptions | ||
available only to disabled persons or persons 65 years of age or | ||
older). | ||
"If the governing body adopts the proposed tax rate of $____ | ||
(proposed tax rate) per $100 of taxable value, the amount of taxes | ||
imposed this year on the average home would be $____ (tax on the | ||
average taxable value of a residence in the taxing unit for the | ||
current year disregarding residence homestead exemptions available | ||
only to disabled persons or persons 65 years of age or older). | ||
"Members of the public are encouraged to attend the hearings | ||
and express their views." | ||
(d) At the public hearings the governing body shall announce | ||
the date, time, and place of the meeting at which it will vote on the | ||
proposed tax rate. After each hearing the governing body shall | ||
give notice of the meeting at which it will vote on the proposed tax | ||
rate and the notice shall be in the same form as prescribed by | ||
Subsections (b) and (c), except that it must state the following: | ||
"NOTICE OF TAX REVENUE INCREASE | ||
"The (name of the taxing unit) conducted public hearings on | ||
(date of first hearing) and (date of second hearing) on a proposal | ||
to increase the total tax revenues of the (name of the taxing unit) | ||
from properties on the tax roll in the preceding year by (percentage | ||
by which proposed tax rate exceeds lower of voter approval | ||
[ |
||
chapter) percent. | ||
"The total tax revenue proposed to be raised last year at last | ||
year's tax rate of (insert tax rate for the preceding year) for each | ||
$100 of taxable value was (insert total amount of taxes imposed in | ||
the preceding year). | ||
"The total tax revenue proposed to be raised this year at the | ||
proposed tax rate of (insert proposed tax rate) for each $100 of | ||
taxable value, excluding tax revenue to be raised from new property | ||
added to the tax roll this year, is (insert amount computed by | ||
multiplying proposed tax rate by the difference between current | ||
total value and new property value). | ||
"The total tax revenue proposed to be raised this year at the | ||
proposed tax rate of (insert proposed tax rate) for each $100 of | ||
taxable value, including tax revenue to be raised from new property | ||
added to the tax roll this year, is (insert amount computed by | ||
multiplying proposed tax rate by current total value). | ||
"The (governing body of the taxing unit) is scheduled to vote | ||
on the tax rate that will result in that tax increase at a public | ||
meeting to be held on (date of meeting) at (location of meeting, | ||
including mailing address) at (time of meeting). | ||
"The (governing body of the taxing unit) proposes to use the | ||
increase in total tax revenue for the purpose of (description of | ||
purpose of increase)." | ||
(e) The meeting to vote on the tax increase may not be | ||
earlier than the third day or later than the 14th day after the date | ||
of the second public hearing. The meeting must be held inside the | ||
boundaries of the taxing unit in a publicly owned building or, if a | ||
suitable publicly owned building is not available, in a suitable | ||
building to which the public normally has access. If the governing | ||
body does not adopt a tax rate that exceeds the lower of the voter | ||
approval [ |
||
day, it must give a new notice under Subsection (d) before it may | ||
adopt a rate that exceeds the lower of the voter approval [ |
||
tax rate or the effective tax rate. | ||
SECTION 23. Sections 26.07(a), (d), and (e), Tax Code, are | ||
amended to read as follows: | ||
(a) If the governing body of a taxing unit other than a | ||
school district adopts a tax rate that exceeds the voter approval | ||
[ |
||
qualified voters of the taxing unit by petition may require that an | ||
election be held to determine whether or not to reduce the tax rate | ||
adopted for the current year to the voter approval [ |
||
rate calculated as provided by this chapter. | ||
(d) If the governing body finds that the petition is valid | ||
(or fails to act within the time allowed), it shall order that an | ||
election be held in the taxing unit on a date not less than 30 or | ||
more than 90 days after the last day on which it could have acted to | ||
approve or disapprove the petition. A state law requiring local | ||
elections to be held on a specified date does not apply to the | ||
election unless a specified date falls within the time permitted by | ||
this section. At the election, the ballots shall be prepared to | ||
permit voting for or against the proposition: "Reducing the tax | ||
rate in (name of taxing unit) for the current year from (the rate | ||
adopted) to (the voter approval [ |
||
provided by this chapter)." | ||
(e) If a majority of the qualified voters voting on the | ||
question in the election favor the proposition, the tax rate for the | ||
taxing unit for the current year is the voter approval [ |
||
tax rate calculated as provided by this chapter; otherwise, the tax | ||
rate for the current year is the one adopted by the governing body. | ||
SECTION 24. Sections 26.08(a), (b), (d), (g), (n), (o), and | ||
(p), Tax Code, are amended to read as follows: | ||
(a) If the governing body of a school district adopts a tax | ||
rate that exceeds the district's voter approval [ |
||
rate, the registered voters of the district at an election held for | ||
that purpose must determine whether to approve the adopted tax | ||
rate. When increased expenditure of money by a school district is | ||
necessary to respond to a disaster, including a tornado, hurricane, | ||
flood, or other calamity, but not including a drought, that has | ||
impacted a school district and the governor has requested federal | ||
disaster assistance for the area in which the school district is | ||
located, an election is not required under this section to approve | ||
the tax rate adopted by the governing body for the year following | ||
the year in which the disaster occurs. | ||
(b) The governing body shall order that the election be held | ||
in the school district on a date not less than 30 or more than 90 | ||
days after the day on which it adopted the tax rate. Section | ||
41.001, Election Code, does not apply to the election unless a date | ||
specified by that section falls within the time permitted by this | ||
section. At the election, the ballots shall be prepared to permit | ||
voting for or against the proposition: "Approving the ad valorem | ||
tax rate of $_____ per $100 valuation in (name of school district) | ||
for the current year, a rate that is $_____ higher per $100 | ||
valuation than the school district voter approval [ |
||
rate, for the purpose of (description of purpose of | ||
increase)." The ballot proposition must include the adopted tax | ||
rate and the difference between that rate and the voter approval | ||
[ |
||
(d) If the proposition is not approved as provided by | ||
Subsection (c), the governing body may not adopt a tax rate for the | ||
school district for the current year that exceeds the school | ||
district's voter approval [ |
||
(g) In a school district that received distributions from an | ||
equalization tax imposed under former Chapter 18, Education Code, | ||
the effective rate of that tax as of the date of the county unit | ||
system's abolition is added to the district's voter approval | ||
[ |
||
(n) For purposes of this section, the voter approval | ||
[ |
||
operations tax rate for the 2005 tax year was $1.50 or less per $100 | ||
of taxable value is: | ||
(1) for the 2006 tax year, the sum of the rate that is | ||
equal to 88.67 percent of the maintenance and operations tax rate | ||
adopted by the district for the 2005 tax year, the rate of $0.04 per | ||
$100 of taxable value, and the district's current debt rate; and | ||
(2) for the 2007 and subsequent tax years, the lesser | ||
of the following: | ||
(A) the sum of the following: | ||
(i) the rate per $100 of taxable value that | ||
is equal to the product of the state compression percentage, as | ||
determined under Section 42.2516, Education Code, for the current | ||
year and $1.50; | ||
(ii) the rate of $0.04 per $100 of taxable | ||
value; | ||
(iii) the rate that is equal to the sum of | ||
the differences for the 2006 and each subsequent tax year between | ||
the adopted tax rate of the district for that year if the rate was | ||
approved at an election under this section and the voter approval | ||
[ |
||
(iv) the district's current debt rate; or | ||
(B) the sum of the following: | ||
(i) the effective maintenance and | ||
operations tax rate of the district as computed under Subsection | ||
(i) or (k), as applicable; | ||
(ii) the rate per $100 of taxable value that | ||
is equal to the product of the state compression percentage, as | ||
determined under Section 42.2516, Education Code, for the current | ||
year and $0.06; and | ||
(iii) the district's current debt rate. | ||
(o) For purposes of this section, the voter approval | ||
[ |
||
operations tax rate for the 2005 tax year was greater than $1.50 per | ||
$100 of taxable value is computed in the manner provided by | ||
Subsection (n) except that the maintenance and operations tax rate | ||
per $100 of taxable value adopted by the district for the 2005 tax | ||
year is substituted for $1.50 in a computation under that | ||
subsection. | ||
(p) Notwithstanding Subsections (i), (n), and (o), if for | ||
the preceding tax year a school district adopted a maintenance and | ||
operations tax rate that was less than the district's effective | ||
maintenance and operations tax rate for that preceding tax year, | ||
the voter approval [ |
||
current tax year is calculated as if the district adopted a | ||
maintenance and operations tax rate for the preceding tax year that | ||
was equal to the district's effective maintenance and operations | ||
tax rate for that preceding tax year. | ||
SECTION 25. Sections 26.16(a) and (d), Tax Code, are | ||
amended to read as follows: | ||
(a) The county assessor-collector for each county that | ||
maintains an Internet website shall post on the website of the | ||
county the following information for the most recent five tax years | ||
beginning with the 2012 tax year for each taxing unit all or part of | ||
the territory of which is located in the county: | ||
(1) the adopted tax rate; | ||
(2) the maintenance and operations rate; | ||
(3) the debt rate; | ||
(4) the effective tax rate; | ||
(5) the effective maintenance and operations rate; and | ||
(6) the voter approval [ |
||
(d) The county assessor-collector shall post immediately | ||
below the table prescribed by Subsection (c) the following | ||
statement: | ||
"The county is providing this table of property tax rate | ||
information as a service to the residents of the county. Each | ||
individual taxing unit is responsible for calculating the property | ||
tax rates listed in this table pertaining to that taxing unit and | ||
providing that information to the county. | ||
"The adopted tax rate is the tax rate adopted by the governing | ||
body of a taxing unit. | ||
"The maintenance and operations rate is the component of the | ||
adopted tax rate of a taxing unit that will impose the amount of | ||
taxes needed to fund maintenance and operation expenditures of the | ||
taxing unit for the following year. | ||
"The debt rate is the component of the adopted tax rate of a | ||
taxing unit that will impose the amount of taxes needed to fund the | ||
taxing unit's debt service for the following year. | ||
"The effective tax rate is the tax rate that would generate | ||
the same amount of revenue in the current tax year as was generated | ||
by a taxing unit's adopted tax rate in the preceding tax year from | ||
property that is taxable in both the current tax year and the | ||
preceding tax year. | ||
"The effective maintenance and operations rate is the tax | ||
rate that would generate the same amount of revenue for maintenance | ||
and operations in the current tax year as was generated by a taxing | ||
unit's maintenance and operations rate in the preceding tax year | ||
from property that is taxable in both the current tax year and the | ||
preceding tax year. | ||
"The voter approval [ |
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rate a taxing unit may adopt before requiring voter approval at an | ||
election. In the case of a taxing unit other than a school | ||
district, the voters by petition may require that a voter approval | ||
tax rate [ |
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rate in excess of the taxing unit's voter approval [ |
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rate. In the case of a school district, an election will | ||
automatically be held if the district wishes to adopt a tax rate in | ||
excess of the district's voter approval [ |
||
SECTION 26. Sections 49.236(a) and (d), Water Code, as | ||
added by Chapter 335 (S.B. 392), Acts of the 78th Legislature, | ||
Regular Session, 2003, are 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 or | ||
decrease, depending on the change in the taxable value of your | ||
property in relation to the change in taxable value of all other | ||
property and the tax rate that is adopted. | ||
"(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; and | ||
(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 | ||
(3) contain a statement in substantially the following | ||
form: | ||
"NOTICE OF TAXPAYERS' RIGHT TO VOTER APPROVAL TAX RATE [ |
||
ELECTION | ||
"If taxes on the average residence homestead increase 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 [ |
||
(d) If the governing body of a district adopts a combined | ||
debt service, operation and maintenance, and contract 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, the qualified voters of the district by petition may require | ||
that an election be held to determine whether or not to reduce the | ||
tax rate adopted for the current year to the voter approval | ||
[ |
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Sections 26.07(b)-(g) and 26.081, Tax Code. For purposes of | ||
Sections 26.07(b)-(g) and this subsection, the voter approval | ||
[ |
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tax rates plus 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. | ||
SECTION 27. Section 49.2361, Water Code, is amended to read | ||
as follows: | ||
Sec. 49.2361. ADDITIONAL NOTICE FOR CERTAIN TAX INCREASES. | ||
If a district proposes to adopt a combined tax rate that would | ||
authorize the qualified voters of the district by petition to | ||
require a voter approval tax rate [ |
||
the district, the notice required by Section 49.236 must include a | ||
description of the purpose of the proposed tax increase. | ||
SECTION 28. A reference in law to a "rollback" tax rate | ||
means a "voter approval" tax rate. | ||
SECTION 29. This Act takes effect January 1, 2020. |