Bill Text: TX HB2221 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2023-03-09 - Referred to Ways & Means [HB2221 Detail]

Download: Texas-2023-HB2221-Introduced.html

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88R9362 TJB-F
By: Harrison H.B. No. 2221

A BILL TO BE ENTITLED
AN ACT
relating to the vote required in an election to approve an ad
valorem tax rate that exceeds a taxing unit's voter-approval tax
rate; making conforming changes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 281.124(d) and (f), Health and Safety
Code, are amended to read as follows:
(d) If at least 60 percent [a majority] of the votes cast in
the election favor the proposition, the tax rate for the specified
tax year is the rate approved by the voters, and that rate is not
subject to Section 26.07, Tax Code. The board shall adopt the tax
rate as provided by Chapter 26, Tax Code.
(f) Notwithstanding any other law, if at least 60 percent [a
majority] of the votes cast in the election favor the proposition, a
governing body with approval authority over the district's budget
or tax rate may not disapprove the tax rate approved by the voters
or disapprove the budget based solely on the tax rate approved by
the voters.
SECTION 2. Section 1101.254(f), Special District Local Laws
Code, is amended to read as follows:
(f) This section does not affect the applicability of
Section 26.07, Tax Code, to the district's tax rate, except that if
at least 60 percent of the district voters approve a tax rate
increase under this section, Section 26.07, Tax Code, does not
apply to the tax rate for that year.
SECTION 3. Sections 26.06(b-1) and (b-3), Tax Code, are
amended to read as follows:
(b-1) If the proposed tax rate exceeds the no-new-revenue
tax rate and the voter-approval tax rate of the taxing unit, the
notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"PROPOSED TAX RATE $__________ per $100
"NO-NEW-REVENUE TAX RATE $__________ per $100
"VOTER-APPROVAL TAX RATE $__________ per $100
"The no-new-revenue tax rate is the tax rate for the (current
tax year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"The voter-approval tax rate is the highest tax rate that
(name of taxing unit) may adopt without holding an election to seek
voter approval of the rate.
"The proposed tax rate is greater than the no-new-revenue tax
rate. This means that (name of taxing unit) is proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"The proposed tax rate is also greater than the
voter-approval tax rate. If (name of taxing unit) adopts the
proposed tax rate, (name of taxing unit) is required to hold an
election so that the voters may accept or reject the proposed tax
rate. Unless at least 60 percent [If a majority] of the voters
accept [reject] the proposed tax rate, the tax rate of the (name of
taxing unit) will be the voter-approval tax rate. The election will
be held on (date of election). You may contact the (name of office
responsible for administering the election) for information about
voting locations. The hours of voting on election day are (voting
hours).
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(Names of all members of the governing body, showing how
each voted on the proposal to consider the tax increase or, if one
or more were absent, indicating the absences.)
"Visit Texas.gov/PropertyTaxes to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
(b-3) If the proposed tax rate does not exceed the
no-new-revenue tax rate but exceeds the voter-approval tax rate of
the taxing unit, the notice must contain a statement in the
following form:
"NOTICE OF PUBLIC HEARING ON TAX RATE
"PROPOSED TAX RATE $__________ per $100
"NO-NEW-REVENUE TAX RATE $__________ per $100
"VOTER-APPROVAL TAX RATE $__________ per $100
"The no-new-revenue tax rate is the tax rate for the (current
tax year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"The voter-approval tax rate is the highest tax rate that
(name of taxing unit) may adopt without holding an election to seek
voter approval of the rate.
"The proposed tax rate is not greater than the no-new-revenue
tax rate. This means that (name of taxing unit) is not proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"The proposed tax rate is greater than the voter-approval tax
rate. If (name of taxing unit) adopts the proposed tax rate, (name
of taxing unit) is required to hold an election so that the voters
may accept or reject the proposed tax rate. Unless at least 60
percent [If a majority] of the voters accept [reject] the proposed
tax rate, the tax rate of the (name of taxing unit) will be the
voter-approval tax rate. The election will be held on (date of
election). You may contact the (name of office responsible for
administering the election) for information about voting
locations. The hours of voting on election day are (voting hours).
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(Names of all members of the governing body, showing how
each voted on the proposal to consider the tax rate or, if one or
more were absent, indicating the absences.)
"Visit Texas.gov/PropertyTaxes to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
SECTION 4. Section 26.063(b), Tax Code, is amended to read
as follows:
(b) This subsection applies only to a taxing unit that is
required to hold an election under Section 26.07. In the notice
required to be provided by the taxing unit under Section 26.06(b-1)
or (b-3), as applicable, the taxing unit shall:
(1) add the following to the end of the list of rates
included in the notice:
"DE MINIMIS RATE $__________ per $100";
(2) substitute the following for the definition of
"voter-approval tax rate": "The voter-approval tax rate is the
highest tax rate that (name of taxing unit) may adopt without
holding an election to seek voter approval of the rate, unless the
de minimis rate for (name of taxing unit) exceeds the
voter-approval tax rate for (name of taxing unit).";
(3) add the following definition of "de minimis rate":
"The de minimis rate is the rate equal to the sum of the
no-new-revenue maintenance and operations rate for (name of taxing
unit), the rate that will raise $500,000, and the current debt rate
for (name of taxing unit)."; and
(4) substitute the following for the provision that
provides notice that an election is required: "The proposed tax
rate is greater than the voter-approval tax rate and the de minimis
rate. If (name of taxing unit) adopts the proposed tax rate, (name
of taxing unit) is required to hold an election so that the voters
may accept or reject the proposed tax rate. Unless at least 60
percent [If a majority] of the voters accept [reject] the proposed
tax rate, the tax rate of the (name of taxing unit) will be the
voter-approval tax rate of the (name of taxing unit). The election
will be held on (date of election). You may contact the (name of
office responsible for administering the election) for information
about voting locations. The hours of voting on election day are
(voting hours).".
SECTION 5. Section 26.07(d), Tax Code, is amended to read as
follows:
(d) If at least 60 percent [a majority] of the votes cast in
the election favor the proposition, the tax rate for the current
year is the rate that was adopted by the governing body.
SECTION 6. Section 26.08(c), Tax Code, is amended to read as
follows:
(c) If at least 60 percent [a majority] of the votes cast in
the election favor the proposition, the tax rate for the current
year is the rate that was adopted by the governing body.
SECTION 7. The changes in law made by this Act apply only to
an election held on or after the effective date of this Act. An
election held before the effective date of this Act is governed by
the law in effect on the date the election was held, and that law is
continued in effect for that purpose.
SECTION 8. This Act takes effect January 1, 2024.