Bill Text: TX HB365 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the calculation of the ad valorem rollback tax rates of certain taxing units.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2015-05-05 - Withdrawn from schedule [HB365 Detail]
Download: Texas-2015-HB365-Introduced.html
By: Elkins | H.B. No. 365 |
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relating to the calculation of the ad valorem rollback tax rates of | ||
certain taxing units. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 26.04, Tax Code, is amended by amending | ||
Subsection (c) and adding Subsections (c-1) and (c-2) to read as | ||
follows: | ||
(c) An officer or employee designated by the governing body | ||
shall calculate the effective tax rate and the rollback tax rate for | ||
the unit, where: | ||
(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) "Rollback tax rate" means a rate expressed in | ||
dollars per $100 of taxable value calculated according to the | ||
following formula: | ||
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND | ||
OPERATIONS RATE x 1.04 [ |
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(c-1) Notwithstanding any other provision of this section, | ||
the designated officer or employee may substitute "1.08" for "1.04" | ||
in the calculation of the rollback tax rate if: | ||
(1) any part of the taxing unit is located in an area | ||
declared a disaster area by the governor or the president of the | ||
United States during the current tax year. | ||
SECTION 2. Section 26.041, Tax Code, is amended by amending | ||
Subsections (a), (b), and (c) and adding Subsections (c-1) and | ||
(c-2) 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 rollback | ||
tax rate for the 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 GAIN RATE | ||
and | ||
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND | ||
OPERATIONS RATE x 1.04 [ |
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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) [ |
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current total value. | ||
(b) Except as provided by Subsections (a) and (c) [ |
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sales and use tax the rollback tax rate for the unit is calculated | ||
according to the following formula, regardless of whether the unit | ||
levied a property tax in the preceding year: | ||
ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND | ||
OPERATIONS EXPENSE x 1.04 [ |
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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) [ |
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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 rollback tax rate for the | ||
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 | ||
ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND | ||
OPERATIONS EXPENSE x 1.04 [ |
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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. | ||
(c-1) Notwithstanding any other provision of this section, | ||
the designated officer or employee may substitute "1.08" for "1.04" | ||
in the calculation of the rollback tax rate if: | ||
(1) any part of the taxing unit is located in an area | ||
declared a disaster area by the governor or the president of the | ||
United States during the current tax year. | ||
SECTION 3. Section 26.08, Tax Code, is amended by amending | ||
Subsections (a), (b), (d), (d-1) and (d-2) to read as follows: | ||
Sec. 26.08. ELECTION TO RATIFY [ |
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governing body of a taxing unit [ |
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that exceeds the taxing unit's [ |
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registered voters of the taxing unit [ |
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for that purpose must determine whether to approve the adopted tax | ||
rate. When increased expenditure of money by a taxing unit [ |
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tornado, hurricane, flood, or other calamity, but not including a | ||
drought, that has impacted a taxing unit [ |
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governor has requested federal disaster assistance for the area in | ||
which the taxing unit [ |
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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 taxing unit [ |
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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 taxing unit [ |
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that is $_____ higher per $100 valuation than the school district | ||
rollback tax rate." The ballot proposition must include the | ||
adopted tax rate and the difference between that rate and the | ||
rollback tax rate in the appropriate places. | ||
(d) If the proposition is not approved as provided by | ||
Subsection (c), the governing body may not adopt a tax rate for the | ||
taxing unit [ |
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taxing unit's [ |
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(d-1) If, after tax bills for the taxing unit [ |
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unit's [ |
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voters of the taxing unit [ |
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section, on subsequent adoption of a new tax rate by the governing | ||
body of the taxing unit [ |
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[ |
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shall include with each bill a brief explanation of the reason for | ||
and effect of the corrected bill. The date on which the taxes | ||
become delinquent for the 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. | ||
(d-2) If a property owner pays taxes calculated using the | ||
originally adopted tax rate of the taxing unit [ |
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and the proposition to approve the adopted tax rate is not approved | ||
by voters, the taxing unit [ |
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difference between the amount of taxes paid and the amount due under | ||
the subsequently adopted rate if the difference between the amount | ||
of taxes paid and the amount due under the subsequent rate is $1 or | ||
more. If the difference between the amount of taxes paid and the | ||
amount due under the subsequent rate is less than $1, the taxing | ||
unit [ |
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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 4. Section 49.236, Water Code, as added by Chapters | ||
248 (H.B. 1541) and 335 (S.B. 392), Acts of the 78th Legislature, | ||
Regular Session, 2003, is reenacted and amended to read as follows: | ||
Sec. 49.236. NOTICE OF TAX HEARING. (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 taxes on the average residence homestead increase by more | ||
than four [ |
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petition may require that an election be held to determine whether | ||
to reduce the operation and maintenance tax rate to the rollback tax | ||
rate under Section 49.236(d), Water Code." | ||
(b) Notice of the hearing shall be: | ||
(1) published at least once in a newspaper having | ||
general circulation in the district at least seven days before the | ||
date of the hearing; or | ||
(2) mailed to each owner of taxable property in the | ||
district, at the address for notice shown on the most recently | ||
certified tax roll of the district, at least 10 days before the date | ||
of the hearing. | ||
(c) The notice provided under this section may not be | ||
smaller than one-quarter page of a standard-size or tabloid-size | ||
newspaper of general circulation, and the headline on the notice | ||
must be in 18-point or larger type. | ||
(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 1.04 [ |
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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 [ |
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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 current year's debt | ||
service and contract tax rates plus the operation and maintenance | ||
tax rate that would impose 1.04 [ |
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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. | ||
(e) Notwithstanding any other provision of this section, | ||
the board may substitute "eight percent" for "four percent" in | ||
Subsection (a) and "1.08" for "1.04" in Subsection (d) if: | ||
(1) any part of the district is located in an area | ||
declared a disaster area by the governor or the president of the | ||
United States during the current tax year. | ||
SECTION 5. Section 26.07, Tax Code is repealed. | ||
SECTION 6. (a) The change in law made by this Act applies | ||
to the ad valorem tax rate of a taxing unit beginning with the 2015 | ||
tax year, except as provided by Subsection (b) of this section. | ||
(b) If the governing body of a taxing unit adopted an ad | ||
valorem tax rate for the taxing unit 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 taxing unit 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 taxing | ||
unit. | ||
SECTION 7. 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 on the 91st day after the last day of the | ||
legislative session. |