Bill Text: TX HB470 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the calculation of the ad valorem rollback tax rate of a taxing unit and voter approval of a proposed tax rate that exceeds the rollback tax rate.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-02-20 - Referred to Ways & Means [HB470 Detail]
Download: Texas-2019-HB470-Introduced.html
86R4288 SMH-F | ||
By: Paul | H.B. No. 470 |
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relating to the calculation of the ad valorem rollback tax rate of a | ||
taxing unit and voter approval of a proposed tax rate that exceeds | ||
the rollback tax rate. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 26.012, Tax Code, is amended by adding | ||
Subdivision (18) to read as follows: | ||
(18) "Small taxing unit" means a taxing unit, other | ||
than a school district, with a population of less than 40,000. | ||
SECTION 2. Section 26.04, Tax Code, is amended by amending | ||
Subsection (c) and adding Subsection (c-1) 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 taxing 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 applicable formula: | ||
(A) for a small taxing unit: | ||
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND | ||
OPERATIONS RATE x 1.08) + CURRENT DEBT RATE | ||
; or | ||
(B) for a taxing unit other than a small taxing | ||
unit: | ||
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND | ||
OPERATIONS RATE x 1.04) + CURRENT DEBT RATE | ||
(c-1) Notwithstanding any other provision of this section, | ||
the governing body of a taxing unit other than a small taxing unit | ||
may direct the designated officer or employee to calculate the | ||
rollback tax rate of the taxing unit according to the formula | ||
applicable to a small taxing unit if any part of the taxing unit is | ||
located in an area declared a disaster area during the current tax | ||
year by the governor or by the president of the United States. | ||
SECTION 3. Section 26.041, Tax Code, is amended by amending | ||
Subsections (a), (b), and (c) and adding Subsection (c-1) 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 taxing 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 | ||
[ |
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ROLLBACK TAX RATE FOR SMALL TAXING UNIT = (EFFECTIVE | ||
MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT | ||
RATE - SALES TAX GAIN RATE | ||
and | ||
ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL | ||
TAXING UNIT = (EFFECTIVE MAINTENANCE AND OPERATIONS | ||
RATE x 1.04) + CURRENT DEBT RATE - 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 taxing unit is | ||
calculated according to the following applicable formula, | ||
regardless of whether the taxing unit levied a property tax in the | ||
preceding year: | ||
ROLLBACK TAX RATE FOR SMALL TAXING UNIT = [(LAST YEAR'S | ||
MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([ |
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CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT | ||
DEBT RATE - SALES TAX REVENUE RATE) | ||
or | ||
ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL | ||
TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS | ||
EXPENSE x 1.04) / (CURRENT 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 | ||
taxing 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 | ||
[ |
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ROLLBACK TAX RATE FOR SMALL TAXING UNIT = [(LAST YEAR'S | ||
MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([ |
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CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT | ||
DEBT RATE | ||
and | ||
ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL | ||
TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS | ||
EXPENSE x 1.04) / (CURRENT 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 governing body of a taxing unit other than a small taxing unit | ||
may direct the designated officer or employee to calculate the | ||
rollback tax rate of the taxing unit according to the formula | ||
applicable to a small taxing unit if any part of the taxing unit is | ||
located in an area declared a disaster area during the current tax | ||
year by the governor or by the president of the United States. | ||
SECTION 4. The heading to Section 26.043, Tax Code, is | ||
amended to read as follows: | ||
Sec. 26.043. ROLLBACK AND EFFECTIVE TAX RATES [ |
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CITY IMPOSING MASS TRANSIT SALES AND USE TAX. | ||
SECTION 5. The heading to Section 26.07, Tax Code, is | ||
amended to read as follows: | ||
Sec. 26.07. ELECTION TO REDUCE TAX RATE OF SMALL TAXING UNIT | ||
[ |
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SECTION 6. Section 26.07(a), Tax Code, is amended to read as | ||
follows: | ||
(a) If the governing body of a small taxing unit [ |
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rollback tax rate calculated as provided by this chapter, the | ||
qualified voters of the taxing unit by 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 calculated as | ||
provided by this chapter. | ||
SECTION 7. The heading to Section 26.08, Tax Code, is | ||
amended to read as follows: | ||
Sec. 26.08. ELECTION TO APPROVE TAX RATE OF TAXING UNIT | ||
OTHER THAN SMALL TAXING UNIT [ |
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SECTION 8. Section 26.08, Tax Code, is amended by amending | ||
Subsections (a), (b), (d), (d-1), (d-2), (e), and (h) and adding | ||
Subsection (r) to read as follows: | ||
(a) If the governing body of a taxing unit other than a small | ||
taxing unit [ |
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taxing unit's [ |
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of the taxing unit [ |
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must determine whether to approve the adopted tax rate. When | ||
increased expenditure of money by a taxing unit [ |
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is necessary to respond to a disaster, including a tornado, | ||
hurricane, flood, or other calamity, but not including a drought, | ||
that has impacted the 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 [ |
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rollback tax rate of (name of taxing unit), for the purpose of | ||
(description of purpose of increase)." 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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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 the 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. | ||
(e) For purposes of this section, local tax funds dedicated | ||
to a junior college district under Section 45.105(e), Education | ||
Code, shall be eliminated from the calculation of the tax rate | ||
adopted by the governing body of a [ |
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the funds dedicated to the junior college district are subject to | ||
Section 26.085. | ||
(h) For purposes of this section, increases in taxable | ||
values and tax levies occurring within a reinvestment zone | ||
designated under Chapter 311 [ |
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which a school [ |
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eliminated from the calculation of the tax rate adopted by the | ||
governing body of the school district. | ||
(r) Except as otherwise expressly provided by law, this | ||
section does not apply to a tax imposed by a taxing unit if a | ||
provision of an uncodified local or special law enacted by the 86th | ||
Legislature, Regular Session, 2019, or by an earlier legislature | ||
provides that Section 26.07 does not apply to a tax imposed by the | ||
taxing unit. | ||
SECTION 9. Section 26.16(d), Tax Code, is amended to read as | ||
follows: | ||
(d) The county assessor-collector shall post immediately | ||
below the table prescribed by Subsection (c) the following | ||
statement: | ||
"The county is providing this table of property tax rate | ||
information as a service to the residents of the county. Each | ||
individual taxing unit is responsible for calculating the property | ||
tax rates listed in this table pertaining to that taxing unit and | ||
providing that information to the county. | ||
"The adopted tax rate is the tax rate adopted by the governing | ||
body of a taxing unit. | ||
"The maintenance and operations rate is the component of the | ||
adopted tax rate of a taxing unit that will impose the amount of | ||
taxes needed to fund maintenance and operation expenditures of the | ||
taxing unit for the following year. | ||
"The debt rate is the component of the adopted tax rate of a | ||
taxing unit that will impose the amount of taxes needed to fund the | ||
taxing unit's debt service for the following year. | ||
"The effective tax rate is the tax rate that would generate | ||
the same amount of revenue in the current tax year as was generated | ||
by a taxing unit's adopted tax rate in the preceding tax year from | ||
property that is taxable in both the current tax year and the | ||
preceding tax year. | ||
"The effective maintenance and operations rate is the tax | ||
rate that would generate the same amount of revenue for maintenance | ||
and operations in the current tax year as was generated by a taxing | ||
unit's maintenance and operations rate in the preceding tax year | ||
from property that is taxable in both the current tax year and the | ||
preceding tax year. | ||
"The rollback tax rate is the highest tax rate a taxing unit | ||
may adopt before requiring voter approval at an election. In the | ||
case of a small taxing unit [ |
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voters by petition may require that a rollback election be held if | ||
the taxing unit adopts a tax rate in excess of the taxing unit's | ||
rollback tax rate. In the case of a taxing unit other than a small | ||
taxing unit [ |
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held if the taxing unit [ |
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excess of the taxing unit's [ |
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SECTION 10. 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), 26.08(d-2), 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), on | ||
the date the results of the election to reduce the tax rate are | ||
certified; | ||
(3) if the refund is required by Section 26.08(d-2), | ||
on the date the subsequent tax rate is adopted; | ||
(4) 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; | ||
(5) [ |
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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; | ||
(6) [ |
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on the date the collector for the taxing unit determines that the | ||
payment was erroneous; or | ||
(7) [ |
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on the date required by Section 31.112(d) or (e), as applicable. | ||
SECTION 11. 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 26.07(f), 26.08(d-1), 26.15(e), 31.03, 31.031, 31.032, | ||
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 12. Section 130.016(b), Education Code, is amended | ||
to read as follows: | ||
(b) If the board of trustees of an independent school | ||
district that divests itself of the management, control, and | ||
operation of a junior college district under this section or under | ||
Section 130.017 [ |
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college district before the divestment, the junior college district | ||
may levy an ad valorem tax from and after the divestment. In the | ||
first two years in which the junior college district levies an ad | ||
valorem tax, the tax rate adopted by the governing body may not | ||
exceed the rate that, if applied to the total taxable value | ||
submitted to the governing body under Section 26.04, Tax Code, | ||
would impose an amount equal to the amount of taxes of the school | ||
district dedicated to the junior college under [ |
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Section 45.105(e) or former Section 20.48(e) [ |
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in the last dedication before the divestment. In subsequent years, | ||
the tax rate of the junior college district is subject to Section | ||
26.07 or 26.08, Tax Code, as applicable. | ||
SECTION 13. Sections 281.124(d) and (e), Health and Safety | ||
Code, are amended to read as follows: | ||
(d) If 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 a rollback | ||
election under Section 26.07 or 26.08, Tax Code. The board shall | ||
adopt the tax rate as provided by Chapter 26, Tax Code, as | ||
applicable. | ||
(e) If the proposition is not approved as provided by | ||
Subsection (d) [ |
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district for the specified tax year that exceeds the rate that was | ||
not approved, and Section 26.07 or 26.08, Tax Code, as applicable, | ||
applies to the adopted rate if that rate exceeds the district's | ||
rollback tax rate. | ||
SECTION 14. Section 140.010, Local Government Code, is | ||
amended by amending Subsections (a), (e), (f), and (g) and adding | ||
Subsection (e-1) to read as follows: | ||
(a) In this section: | ||
(1) "Effective[ |
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tax rate" mean the effective tax rate and rollback tax rate of a | ||
county or municipality, as applicable, as calculated under Chapter | ||
26, Tax Code. | ||
(2) "Small taxing unit" has the meaning assigned by | ||
Section 26.012, Tax Code. | ||
(e) A county or municipality that is a small taxing unit and | ||
that proposes a property tax rate that exceeds the lower of the | ||
effective tax rate or the rollback tax rate shall provide the | ||
following notice: | ||
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX | ||
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY) | ||
"A tax rate of $_____ per $100 valuation has been proposed for | ||
adoption by the governing body of (insert name of county or | ||
municipality). This rate exceeds the lower of the effective or | ||
rollback tax rate, and state law requires that two public hearings | ||
be held by the governing body before adopting the proposed tax rate. | ||
The governing body of (insert name of county or municipality) | ||
proposes to use revenue attributable to the tax rate increase for | ||
the purpose of (description of purpose of increase). | ||
PROPOSED TAX RATE$______ per $100 | ||
PRECEDING YEAR'S TAX RATE$______ per $100 | ||
EFFECTIVE TAX RATE$______ per $100 | ||
ROLLBACK TAX RATE$______ per $100 | ||
"The effective tax rate is the total tax rate needed to raise the | ||
same amount of property tax revenue for (insert name of county or | ||
municipality) from the same properties in both the (insert | ||
preceding tax year) tax year and the (insert current tax year) tax | ||
year. | ||
"The rollback tax rate is the highest tax rate that (insert name of | ||
county or municipality) may adopt before the voters are entitled to | ||
petition for an election to limit the rate that may be approved to | ||
the rollback tax rate. | ||
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS | ||
FOLLOWS: | ||
property tax amount = (rate) x (taxable value of your property) / | ||
100 | ||
"For assistance or detailed information about tax calculations, | ||
please contact: | ||
(insert name of county or municipal tax assessor-collector) | ||
(insert name of county or municipality) tax | ||
assessor-collector | ||
(insert address) | ||
(insert telephone number) | ||
(insert e-mail address) | ||
(insert Internet website address, if applicable) | ||
"You are urged to attend and express your views at the following | ||
public hearings on the proposed tax rate: | ||
First Hearing: (insert date and time) at (insert location of | ||
meeting). | ||
Second Hearing: (insert date and time) at (insert location | ||
of meeting)." | ||
(e-1) A county or municipality that is not a small taxing | ||
unit and that proposes a property tax rate that exceeds the lower of | ||
the effective tax rate or the rollback tax rate shall provide the | ||
following notice: | ||
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX | ||
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY) | ||
"A tax rate of $_____ per $100 valuation has been proposed for | ||
adoption by the governing body of (insert name of county or | ||
municipality). This rate exceeds the lower of the effective or | ||
rollback tax rate, and state law requires that two public hearings | ||
be held by the governing body before adopting the proposed tax rate. | ||
The governing body of (insert name of county or municipality) | ||
proposes to use revenue attributable to the tax rate increase for | ||
the purpose of (description of purpose of increase). | ||
PROPOSED TAX RATE$______ per $100 | ||
PRECEDING YEAR'S TAX RATE$______ per $100 | ||
EFFECTIVE TAX RATE$______ per $100 | ||
ROLLBACK TAX RATE$______ per $100 | ||
"The effective tax rate is the total tax rate needed to raise the | ||
same amount of property tax revenue for (insert name of county or | ||
municipality) from the same properties in both the (insert | ||
preceding tax year) tax year and the (insert current tax year) tax | ||
year. | ||
"The rollback tax rate is the highest tax rate that (insert name of | ||
county or municipality) may adopt before the (insert "county" or | ||
"city") is required to hold an election to limit the rate that may | ||
be approved to the rollback tax rate. | ||
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS | ||
FOLLOWS: | ||
property tax amount = (rate) x (taxable value of your property) / | ||
100 | ||
"For assistance or detailed information about tax calculations, | ||
please contact: | ||
(insert name of county or municipal tax assessor-collector) | ||
(insert name of county or municipality) tax | ||
assessor-collector | ||
(insert address) | ||
(insert telephone number) | ||
(insert e-mail address) | ||
(insert Internet website address, if applicable) | ||
"You are urged to attend and express your views at the following | ||
public hearings on the proposed tax rate: | ||
First Hearing: (insert date and time) at (insert location of | ||
meeting). | ||
Second Hearing: (insert date and time) at (insert location | ||
of meeting)." | ||
(f) A county or municipality shall: | ||
(1) provide the notice required by Subsection (d), | ||
[ |
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September 1 or the 30th day after the first date that the taxing | ||
unit has received each applicable certified appraisal roll by: | ||
(A) publishing the notice in a newspaper having | ||
general circulation in: | ||
(i) the county, in the case of notice | ||
published by a county; or | ||
(ii) the county in which the municipality | ||
is located or primarily located, in the case of notice published by | ||
a municipality; or | ||
(B) mailing the notice to each property owner in: | ||
(i) the county, in the case of notice | ||
provided by a county; or | ||
(ii) the municipality, in the case of | ||
notice provided by a municipality; and | ||
(2) post the notice on the Internet website of the | ||
county or municipality, if applicable, beginning not later than the | ||
later of September 1 or the 30th day after the first date that the | ||
taxing unit has received each applicable certified appraisal roll | ||
and continuing until the county or municipality adopts a tax rate. | ||
(g) If the notice required by Subsection (d), [ |
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(e-1) is published in a newspaper: | ||
(1) the notice may not be smaller than one-quarter | ||
page of a standard-size or a tabloid-size newspaper; and | ||
(2) the headline on the notice must be in 24-point or | ||
larger type. | ||
SECTION 15. Section 1122.2522, Special District Local Laws | ||
Code, is amended by amending Subsection (a) and adding Subsection | ||
(a-1) to read as follows: | ||
(a) If in any year the board adopts a tax rate that exceeds | ||
the rollback tax rate calculated as provided by Chapter 26, Tax | ||
Code, and the district is a small taxing unit as defined by Section | ||
26.012 of that code, the qualified voters of the district by | ||
petition may require that an election be held to determine whether | ||
or not to reduce the tax rate adopted by the board for that year to | ||
the rollback tax rate. | ||
(a-1) If in any year the board adopts a tax rate that exceeds | ||
the rollback tax rate calculated as provided by Chapter 26, Tax | ||
Code, and the district is not a small taxing unit as defined by | ||
Section 26.012 of that code, an election must be held to determine | ||
whether or not to approve the tax rate adopted by the board for that | ||
year. | ||
SECTION 16. Sections 3828.157 and 8876.152, Special | ||
District Local Laws Code, are amended to read as follows: | ||
Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE | ||
PROVISIONS. Sections 26.04, 26.05, [ |
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Code, do not apply to a tax imposed under Section 3828.153 or | ||
3828.156. | ||
Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS. | ||
(a) Sections 26.04, 26.05, 26.06, [ |
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do not apply to a tax imposed by the district. | ||
(b) Sections 49.236(a)(1) and (2) and (b) [ |
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Water Code, apply [ |
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SECTION 17. Section 49.107(g), Water Code, is amended to | ||
read as follows: | ||
(g) Sections 26.04, 26.05, [ |
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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 18. Section 49.108(f), Water Code, is amended to | ||
read as follows: | ||
(f) Sections 26.04, 26.05, [ |
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do not apply to a tax levied and collected for payments made under a | ||
contract approved in accordance with this section. | ||
SECTION 19. Section 49.236, Water Code, as added by Chapter | ||
335 (S.B. 392), Acts of the 78th Legislature, Regular Session, | ||
2003, is amended by amending Subsections (a) and (d) and adding | ||
Subsections (e), (f), (g), (h), (i), (j), (k), (l), and (m) 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; [ |
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(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 | ||
(G) if the proposed combined debt service, | ||
operation and maintenance, and contract tax rate requires or | ||
authorizes an election in the district to approve the tax rate, a | ||
description of the purpose of the proposed tax increase; and | ||
(3) contain a statement in substantially the following | ||
form, as applicable: | ||
(A) if the district is not a small taxing unit: | ||
"NOTICE OF VOTE ON TAX RATE [ |
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"If taxes on the average residence homestead increase by more | ||
than four [ |
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whether to approve [ |
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rate [ |
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Code."; or | ||
(B) if the district is a small taxing unit: | ||
"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION | ||
"If 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 approve the tax rate under Section 49.236(e), Water Code." | ||
(d) This subsection applies to a district only if the | ||
district is not a small taxing unit. If the board [ |
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of the [ |
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maintenance, and contract tax rate that would impose more than 1.04 | ||
[ |
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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, [ |
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must be held to determine whether [ |
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tax rate adopted for the current year [ |
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accordance with the procedures provided by Sections 26.08(b), (c), | ||
(d), (d-1), and (d-2) [ |
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(e) This subsection and Subsections (f)-(i) apply to a | ||
district only if the district is a small taxing unit. If the board | ||
of the district adopts a combined debt service, operation and | ||
maintenance, and contract 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 approve the tax rate adopted for the current | ||
year in accordance with the procedures provided by Subsections | ||
(f)-(i) of this section and Section 26.081, Tax Code. | ||
(f) A petition under Subsection (e) is valid only if: | ||
(1) it states that it is intended to require an | ||
election in the district on the question of approving the tax rate | ||
adopted for the current year; | ||
(2) it is signed by a number of registered voters of | ||
the district equal to at least: | ||
(A) seven percent of the number of registered | ||
voters of the district according to the most recent official list of | ||
registered voters if the tax rate adopted for the current tax year | ||
would impose taxes for operation and maintenance in an amount of at | ||
least $5 million; or | ||
(B) 10 percent of the number of registered voters | ||
of the district according to the most recent official list of | ||
registered voters if the tax rate adopted for the current tax year | ||
would impose taxes for operation and maintenance in an amount of | ||
less than $5 million; and | ||
(3) it is submitted to the board on or before the 90th | ||
day after the date on which the board adopted the tax rate for the | ||
current year. | ||
(g) Not later than the 20th day after the day a petition is | ||
submitted, the board shall determine whether or not the petition is | ||
valid and pass a resolution stating its finding. If the board fails | ||
to act within the time allowed, the petition is treated as if it had | ||
been found valid. | ||
(h) If the board finds that the petition is valid (or fails | ||
to act within the time allowed), it shall order that an election be | ||
held in the district on a date not less than 30 or more than 90 days | ||
after the last day on which it could have acted to approve or | ||
disapprove the petition. A state law requiring local elections to | ||
be held on a specified date does not apply to the election unless a | ||
specified date falls within the time permitted by this subsection. | ||
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 district) for the current year, | ||
a rate that is $____ higher per $100 valuation than the district's | ||
rollback tax rate, for the purpose of (description of purpose of | ||
increase)." The ballot proposition must include the adopted tax | ||
rate and the difference between that rate and the rollback tax rate | ||
in the appropriate places. | ||
(i) Sections 26.08(c), (d), (d-1), and (d-2), Tax Code, | ||
apply to an election under Subsection (e) of this section in the | ||
same manner as those subsections apply to an election under Section | ||
26.08, Tax Code. | ||
(j) For purposes of Subsection (d) [ |
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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 1.04 [ |
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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. | ||
(k) For purposes of Subsection (e), the rollback tax rate of | ||
a district is the sum of the following tax rates: | ||
(1) the current year's debt service tax rate; | ||
(2) the current year's contract tax rate; and | ||
(3) the operation and maintenance tax 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. | ||
(l) Notwithstanding any other provision of this section, | ||
the board may substitute "eight percent" for "four percent" in | ||
Subsection (a)(3)(A) and "1.08" for "1.04" in Subsections (d) and | ||
(j) if any part of the district is located in an area declared a | ||
disaster area during the current tax year by the governor or by the | ||
president of the United States. | ||
(m) In this section, "small taxing unit" has the meaning | ||
assigned by Section 26.012, Tax Code. | ||
SECTION 20. The following provisions are repealed: | ||
(1) Section 49.236, Water Code, as added by Chapter | ||
248 (H.B. 1541), Acts of the 78th Legislature, Regular Session, | ||
2003; and | ||
(2) Section 49.2361, Water Code. | ||
SECTION 21. This Act takes effect January 1, 2020. |