Bill Text: TX HB2432 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the procedure for the adoption of an ad valorem tax rate by certain special districts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-05-08 - Comm. report sent to Local & Consent Calendar [HB2432 Detail]
Download: Texas-2015-HB2432-Introduced.html
84R1734 SMH-F | ||
By: Faircloth | H.B. No. 2432 |
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relating to the procedure for the adoption of an ad valorem tax rate | ||
by certain special districts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 26.05(a), Tax Code, is amended to read as | ||
follows: | ||
(a) The governing body of each taxing unit, before the later | ||
of September 30 or the 60th day after the date the certified | ||
appraisal roll is received by the taxing unit, shall adopt a tax | ||
rate for the current tax year and shall notify the assessor for the | ||
unit of the rate adopted. The tax rate consists of two components, | ||
each of which must be approved separately. The components are: | ||
(1) for a taxing unit other than a school district, the | ||
rate that, if applied to the total taxable value, will impose the | ||
total amount calculated [ |
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less any amount of additional sales and use tax revenue that will be | ||
used to pay debt service, or, for a school district, the rate | ||
calculated under Section 44.004(c)(5)(A)(ii)(b), Education Code; | ||
and | ||
(2) the rate that, if applied to the total taxable | ||
value, will impose the amount of taxes needed to fund maintenance | ||
and operation expenditures of the unit for the next year. | ||
SECTION 2. Section 49.107(g), Water Code, is amended to | ||
read as follows: | ||
(g) Except as provided by Section 49.236 of this code, | ||
Sections 26.04(c)-(j), 26.05(b), (c), (d), and (e) [ |
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and 26.07, 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 3. Section 49.108(f), Water Code, is amended to | ||
read as follows: | ||
(f) Except as provided by Section 49.236 of this code, | ||
Sections 26.04(c)-(j), 26.05(b), (c), (d), and (e) [ |
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and 26.07, Tax Code, do not apply to a tax levied and collected for | ||
payments made under a contract approved in accordance with this | ||
section. | ||
SECTION 4. 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 ROLLBACK ELECTION | ||
"If operation and maintenance 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 combined debt service, operation | ||
and maintenance, and contract tax rate to the rollback tax rate | ||
under Section 49.236(d), Water Code." | ||
(d) If the governing body of a district adopts a combined | ||
debt service, operation and maintenance, and contract tax rate that | ||
exceeds the rollback tax rate [ |
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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 | ||
rollback tax rate in accordance with the procedures provided by | ||
Sections 26.07(b)-(g) and 26.081, Tax Code. For purposes of | ||
Sections 26.07(b)-(g) and this subsection, the rollback tax rate is | ||
the sum of the following tax rates: | ||
(1) the current year's debt service tax rate; | ||
(2) the current year's [ |
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(3) [ |
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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 5. Section 8876.152(b), Special District Local Laws | ||
Code, is amended to read as follows: | ||
(b) Sections 49.236(a)(1) and (2) and (b) [ |
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Water Code, apply [ |
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SECTION 6. Section 49.236, Water Code, as added by Chapter | ||
248 (H.B. 1541), Acts of the 78th Legislature, Regular Session, | ||
2003, is repealed. | ||
SECTION 7. (a) The change in law made by this Act applies to | ||
the ad valorem tax rate of a district as defined by Section 49.001, | ||
Water Code, beginning with the 2015 tax year, except as provided by | ||
Subsection (b) of this section. | ||
(b) If the governing body of a district adopted an ad | ||
valorem tax rate for the district for the 2015 tax year before the | ||
effective date of this Act, the change in law made by this Act | ||
applies to the ad valorem tax rate of that district beginning with | ||
the 2016 tax year, and the law in effect when the tax rate was | ||
adopted applies to the 2015 tax year with respect to that district. | ||
SECTION 8. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2015. |