Bill Text: TX SB976 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to the procedure for the adoption of an ad valorem tax rate by a taxing unit.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2023-04-27 - Left pending in committee [SB976 Detail]

Download: Texas-2023-SB976-Introduced.html
  88R2462 CJC/TJB-D
 
  By: Middleton, Bettencourt S.B. No. 976
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the procedure for the adoption of an ad valorem tax rate
  by a taxing unit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 3828.157, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 3828.157.  INAPPLICABILITY OF CERTAIN TAX CODE
  PROVISIONS.  Sections 26.04, 26.042, 26.05, and 26.07, [and
  26.075,] Tax Code, do not apply to a tax imposed under Section
  3828.153 or 3828.156.
         SECTION 2.  Section 8876.152(a), Special District Local Laws
  Code, is amended to read as follows:
         (a)  Sections 26.04, 26.042, 26.05, 26.06, 26.061, and
  26.07, [and 26.075,] Tax Code, do not apply to a tax imposed by the
  district.
         SECTION 3.  Section 26.012(7), Tax Code, is amended to read
  as follows:
               (7)  "Debt" means[:
                     [(A)]  a bond, warrant, certificate of
  obligation, or other evidence of indebtedness owed by a taxing unit
  that has been approved at an election and[:
                           [(i)]  is payable from property taxes in
  installments over a period of more than one year, not budgeted for
  payment from maintenance and operations funds, and secured by a
  pledge of property taxes,[; and
                           [(ii)  meets one of the following
  requirements:
                                 [(a)  has been approved at an election;
                                 [(b)  includes self-supporting debt;
                                 [(c)  evidences a loan under a state or
  federal financial assistance program;
                                 [(d)  is issued for designated
  infrastructure;
                                 [(e)  is a refunding bond;
                                 [(f)  is issued in response to an
  emergency under Section 1431.015, Government Code;
                                 [(g)  is issued for renovating,
  improving, or equipping existing buildings or facilities;
                                 [(h)  is issued for vehicles or
  equipment; or
                                 [(i)  is issued for a project under
  Chapter 311, Tax Code, or Chapter 222, Transportation Code, that is
  located in a reinvestment zone created under one of those
  chapters;] or
                     [(B)]  a payment made under contract to secure
  indebtedness of a similar nature issued by another political
  subdivision on behalf of the taxing unit.  The term "debt" includes
  a bond or other obligation issued to refund a bond, warrant,
  certificate of obligation, or other evidence of indebtedness
  regardless of whether the refunding bond or other refunding
  obligation was approved at an election.
         SECTION 4.  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 5.  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 6.  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 7.  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 8.  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 9.  Section 49.23603, Water Code, is amended by
  amending Subsection (c) and adding Subsections (d), (e), (f), (g),
  (h), (i), (j), and (k) to read as follows:
         (c)  If the board of a district adopts a combined debt
  service, contract, and operation and maintenance tax rate that
  would impose more than 1.08 times the amount of tax imposed by the
  district in the preceding year on a residence homestead appraised
  at the average appraised value of a residence homestead in the
  district in that year, disregarding any homestead exemption
  available only to disabled persons or persons 65 years of age or
  older, the qualified voters of the district by petition may require
  that an election be held to determine whether to reduce the tax rate
  adopted for the current year to the voter-approval tax rate in
  accordance with the procedures provided by this section and Section
  [Sections 26.075 and] 26.081, Tax Code.
         (d)  A petition is valid only if the petition:
               (1)  states that it is intended to require an election
  in the district on the question of reducing the district's adopted
  tax rate for the current tax year;
               (2)  is signed by a number of registered voters of the
  district equal to at least three percent of the registered voters of
  the district determined according to the most recent list of those
  voters; and
               (3)  is submitted to the district's board not later than
  the 90th day after the date on which the board adopts the tax rate
  for the current tax year.
         (e)  Not later than the 20th day after the date on which a
  petition is submitted, the board shall determine whether the
  petition is valid and must by resolution state the board's
  determination.  If the board fails to make the determination in the
  time and manner required by this subsection, the petition is
  considered to be valid for the purposes of this section.
         (f)  If the board determines that the petition is valid or
  fails to make the determination in the time and manner required by
  Subsection (e), the board shall order that an election be held in
  the district on the next uniform election date that allows
  sufficient time to comply with the requirements of other law.
         (g)  At the election, the ballots shall be prepared to permit
  voting for or against the proposition:  "Reducing the tax rate in
  (name of district) for the current year from (insert tax rate
  adopted for current year) to (insert voter-approval tax rate)."
         (h)  If a majority of the votes cast in the election favor the
  proposition, the tax rate for the current tax year is the
  voter-approval tax rate. 
         (i)  If the proposition is not approved as provided by
  Subsection (h), the tax rate for the district for the current tax
  year is the tax rate adopted by the district's board for the current
  tax year.
         (j)  If the tax rate is reduced by an election held under this
  section after tax bills for the district have been mailed, the
  assessor for the district shall prepare and mail corrected tax
  bills.  The assessor shall include with the bill a brief explanation
  of the reason for and effect of the corrected bill.  The date on
  which the taxes become delinquent for the tax year is extended by a
  number of days equal to the number of days between the date the
  first tax bills were sent and the date the corrected tax bills were
  sent.
         (k)  If a property owner pays taxes calculated using the
  higher tax rate when the tax rate is reduced by an election held
  under this section, the district shall refund the difference
  between the amount of taxes paid and the amount due under the
  reduced tax rate if the difference between the amount of taxes paid
  and the amount due under the reduced tax rate is $1 or more.  If the
  difference between the amount of taxes paid and the amount due under
  the reduced rate is less than $1, the district shall refund the
  difference on request of the taxpayer.  An application for a refund
  of less than $1 must be made within 90 days after the date the refund
  becomes due or the taxpayer forfeits the right to the refund.
         SECTION 10.  The following provisions of the Tax Code are
  repealed:
               (1)  Sections 26.012(8-a), (9), (18-a), and (18-b);
               (2)  Section 26.063; and
               (3)  Section 26.075.
         SECTION 11.  Section 26.012(7), Tax Code, as amended by this
  Act, applies only to a bond, warrant, certificate of obligation, or
  other evidence of indebtedness for which the ordinance, order, or
  resolution authorizing issuance was adopted by the governing body
  of the taxing unit on or after the effective date of this Act.
         SECTION 12.  This Act applies only to ad valorem taxes
  imposed for an ad valorem tax year that begins on or after the
  effective date of this Act.
         SECTION 13.  This Act takes effect January 1, 2024.
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