Bill Text: TX HB4456 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the calculation of certain ad valorem tax rates of a school district.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2023-06-18 - Effective on 1/1/24 [HB4456 Detail]
Download: Texas-2023-HB4456-Enrolled.html
H.B. No. 4456 |
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relating to the calculation of certain ad valorem tax rates of a | ||
school district. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 5.07(f), Tax Code, is amended to read as | ||
follows: | ||
(f) The comptroller shall prescribe tax rate calculation | ||
forms to be used by the designated officer or employee of each[ |
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calculate and submit the no-new-revenue tax rate and the | ||
voter-approval tax rate for the taxing unit as required by Chapter | ||
26[ |
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SECTION 2. Section 26.012(18), Tax Code, is amended to read | ||
as follows: | ||
(18) "No-new-revenue maintenance and operations rate" | ||
means a rate expressed in dollars per $100 of taxable value | ||
calculated as follows: | ||
(A) for a taxing unit other than a school | ||
district, the rate [ |
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formula: | ||
NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE = (LAST | ||
YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST YEAR'S JUNIOR COLLEGE | ||
LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE) | ||
; or | ||
(B) for a school district, the rate calculated as | ||
provided by Section 44.004(c)(5)(A)(ii)(a), Education Code. | ||
SECTION 3. Section 26.05(b), Tax Code, is amended to read as | ||
follows: | ||
(b) A taxing unit may not impose property taxes in any year | ||
until the governing body has adopted a tax rate for that year, and | ||
the annual tax rate must be set by ordinance, resolution, or order, | ||
depending on the method prescribed by law for adoption of a law by | ||
the governing body. The vote on the ordinance, resolution, or order | ||
setting the tax rate must be separate from the vote adopting the | ||
budget. For a taxing unit other than a school district, the vote on | ||
the ordinance, resolution, or order setting a tax rate that exceeds | ||
the no-new-revenue tax rate must be a record vote, and at least 60 | ||
percent of the members of the governing body must vote in favor of | ||
the ordinance, resolution, or order. For a school district, the | ||
vote on the ordinance, resolution, or order setting a tax rate that | ||
exceeds the rate calculated as provided by Section | ||
44.004(c)(5)(A)(ii), Education Code, [ |
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be a record vote, and at least 60 percent of the members of the | ||
governing body must vote in favor of the ordinance, resolution, or | ||
order. A motion to adopt an ordinance, resolution, or order setting | ||
a tax rate that exceeds the no-new-revenue tax rate must be made in | ||
the following form: "I move that the property tax rate be increased | ||
by the adoption of a tax rate of (specify tax rate), which is | ||
effectively a (insert percentage by which the proposed tax rate | ||
exceeds the no-new-revenue tax rate) percent increase in the tax | ||
rate." If the ordinance, resolution, or order sets a tax rate that, | ||
if applied to the total taxable value, will impose an amount of | ||
taxes to fund maintenance and operation expenditures of the taxing | ||
unit that exceeds the amount of taxes imposed for that purpose in | ||
the preceding year, the taxing unit must: | ||
(1) include in the ordinance, resolution, or order in | ||
type larger than the type used in any other portion of the document: | ||
(A) the following statement: "THIS TAX RATE WILL | ||
RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S | ||
TAX RATE."; and | ||
(B) if the tax rate exceeds the no-new-revenue | ||
maintenance and operations rate, the following statement: "THE TAX | ||
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE | ||
TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS | ||
RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS | ||
ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."; and | ||
(2) include on the home page of the Internet website of | ||
the taxing unit: | ||
(A) the following statement: "(Insert name of | ||
taxing unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR | ||
MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and | ||
(B) if the tax rate exceeds the no-new-revenue | ||
maintenance and operations rate, the following statement: "THE TAX | ||
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE | ||
TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS | ||
RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS | ||
ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)." | ||
SECTION 4. Section 26.17(b), Tax Code, is amended to read as | ||
follows: | ||
(b) The database must include, with respect to each property | ||
listed on the appraisal roll for the appraisal district: | ||
(1) the property's identification number; | ||
(2) the property's market value; | ||
(3) the property's taxable value; | ||
(4) the name of each taxing unit in which the property | ||
is located; | ||
(5) for each taxing unit other than a school district | ||
in which the property is located: | ||
(A) the no-new-revenue tax rate; and | ||
(B) the voter-approval tax rate; | ||
(6) for each school district in which the property is | ||
located: | ||
(A) the tax rate that would maintain the same | ||
amount of state and local revenue per [ |
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district received in the school year beginning in the preceding tax | ||
year; and | ||
(B) the voter-approval tax rate; | ||
(7) the tax rate proposed by the governing body of each | ||
taxing unit in which the property is located; | ||
(8) for each taxing unit other than a school district | ||
in which the property is located, the taxes that would be imposed on | ||
the property if the taxing unit adopted a tax rate equal to: | ||
(A) the no-new-revenue tax rate; and | ||
(B) the proposed tax rate; | ||
(9) for each school district in which the property is | ||
located, the taxes that would be imposed on the property if the | ||
district adopted a tax rate equal to: | ||
(A) the tax rate that would maintain the same | ||
amount of state and local revenue per [ |
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district received in the school year beginning in the preceding tax | ||
year; and | ||
(B) the proposed tax rate; | ||
(10) for each taxing unit other than a school district | ||
in which the property is located, the difference between the amount | ||
calculated under Subdivision (8)(A) and the amount calculated under | ||
Subdivision (8)(B); | ||
(11) for each school district in which the property is | ||
located, the difference between the amount calculated under | ||
Subdivision (9)(A) and the amount calculated under Subdivision | ||
(9)(B); | ||
(12) the date, time, and location of the public | ||
hearing, if applicable, on the proposed tax rate to be held by the | ||
governing body of each taxing unit in which the property is located; | ||
(13) the date, time, and location of the public | ||
meeting, if applicable, at which the tax rate will be adopted to be | ||
held by the governing body of each taxing unit in which the property | ||
is located; and | ||
(14) for each taxing unit in which the property is | ||
located, an e-mail address at which the taxing unit is capable of | ||
receiving written comments regarding the proposed tax rate of the | ||
taxing unit. | ||
SECTION 5. The change in law made by this Act applies to an | ||
ad valorem tax year that begins on or after the effective date of | ||
this Act. | ||
SECTION 6. This Act takes effect January 1, 2024. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 4456 was passed by the House on May 9, | ||
2023, by the following vote: Yeas 116, Nays 26, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 4456 was passed by the Senate on May | ||
24, 2023, by the following vote: Yeas 29, Nays 2. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |