Bill Text: TX HB4852 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the form of a notice of public hearing on a proposed ad valorem tax rate.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-23 - Referred to Ways & Means [HB4852 Detail]
Download: Texas-2023-HB4852-Introduced.html
88R13537 CJC-F | ||
By: Harrison | H.B. No. 4852 |
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relating to the form of a notice of public hearing on a proposed ad | ||
valorem tax rate. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 26.06(b-1), (b-2), 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 | ||
"LAST YEAR'S TAX RATE $__________ per $100 | ||
"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. If a majority of the voters 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-2) If the proposed tax rate exceeds the no-new-revenue | ||
tax rate but does not exceed 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 | ||
"LAST YEAR'S TAX RATE $__________ per $100 | ||
"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 not greater than the voter-approval | ||
tax rate. As a result, (name of taxing unit) is not required to | ||
hold an election at which voters may accept or reject the proposed | ||
tax rate. However, you may express your support for or opposition | ||
to the proposed tax rate by contacting the members of the (name of | ||
governing body) of (name of taxing unit) at their offices or by | ||
attending the public hearing mentioned above. | ||
"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 | ||
"LAST YEAR'S TAX RATE $__________ per $100 | ||
"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. If a majority of the | ||
voters 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 2. Section 26.061(b), Tax Code, is amended to read | ||
as follows: | ||
(b) The notice of the meeting at which the governing body of | ||
the taxing unit will vote on the proposed tax rate must contain a | ||
statement in the following form: | ||
"NOTICE OF MEETING TO VOTE ON TAX RATE | ||
"LAST YEAR'S TAX RATE $__________ per $100 | ||
"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 meeting to vote on the proposed tax rate will be | ||
held on (date and time) at (meeting place). | ||
"The proposed tax rate is also not greater than the | ||
voter-approval tax rate. As a result, (name of taxing unit) is not | ||
required to hold an election to seek voter approval of the | ||
rate. However, you may express your support for or opposition to | ||
the proposed tax rate by contacting the members of the (name of | ||
governing body) of (name of taxing unit) at their offices or by | ||
attending the public meeting mentioned above. | ||
"Your taxes owed under any of the above rates 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 proposed 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 3. Section 26.062, Tax Code, is amended by adding | ||
Subsections (i), (j), (k), and (l) to read as follows: | ||
(i) In addition to any other information required by law, a | ||
notice required by Section 26.06(b-1), (b-2), or (b-3) or 26.061 | ||
must include, in a prominent location on the notice: | ||
(1) a statement in the following form, followed by the | ||
table described by Subsection (j): | ||
"The following table compares the revenue generated by the | ||
maintenance and operations rate and debt rate adopted by (name of | ||
taxing unit) for the preceding tax year and the revenue that would | ||
be generated by the maintenance and operations rate and debt rate | ||
proposed to be adopted by (name of taxing unit) for the current tax | ||
year."; | ||
(2) a statement in the following form, followed by the | ||
table described by Subsection (k): | ||
"The following table compares the total taxable value of | ||
property in the (name of taxing unit) in the preceding tax year and | ||
the total taxable value of property in the (name of taxing unit) in | ||
the current tax year."; and | ||
(3) a statement in the following form, followed by the | ||
table described by Subsection (l): | ||
"Last year, (name of taxing unit) adopted a property tax rate | ||
of (insert tax rate adopted by the taxing unit for the preceding tax | ||
year), which generated (insert the amount computed by multiplying | ||
the total taxable value of property in the taxing unit in the | ||
preceding tax year by the tax rate adopted by the taxing unit for | ||
the preceding tax year and dividing the product by 100) in tax | ||
revenue for (name of taxing unit). The following table shows the | ||
amounts of revenue that would be generated if (name of taxing unit) | ||
adopted for the current tax year the no-new-revenue tax rate, the | ||
voter-approval tax rate, and the proposed tax rate, respectively, | ||
as calculated for that tax year." | ||
(j) The table following the statement required by | ||
Subsection (i)(1) must include three rows and four columns. The | ||
first column of the first row must be left blank, the second column | ||
of the first row must state the year corresponding to the preceding | ||
tax year, the third column of the first row must state the year | ||
corresponding to the current tax year, and the fourth column of the | ||
first row must be entitled "Change". The first column of the second | ||
row must be entitled "Maintenance and operations revenue", the | ||
second column of the second row must state the amount of maintenance | ||
and operations revenue attributable to ad valorem taxes imposed by | ||
the taxing unit in the preceding tax year, the third column of the | ||
second row must state the amount of the estimated maintenance and | ||
operations revenue attributable to ad valorem taxes imposed by the | ||
taxing unit in the current tax year, and the fourth column of the | ||
second row must state the nominal difference between the amount of | ||
maintenance and operations revenue attributable to ad valorem taxes | ||
imposed by the taxing unit in the preceding tax year and the amount | ||
of the estimated maintenance and operations revenue attributable to | ||
ad valorem taxes imposed by the taxing unit in the current tax year. | ||
The first column of the third row must be entitled "Debt | ||
collections", the second column of the third row must state the | ||
amount of revenue for debt service attributable to ad valorem taxes | ||
imposed by the taxing unit in the preceding tax year, the third | ||
column of the third row must state the estimated amount of revenue | ||
for debt service attributable to ad valorem taxes imposed by the | ||
taxing unit in the current tax year, and the fourth column of the | ||
second row must state the nominal difference between the amount of | ||
revenue for debt service attributable to ad valorem taxes imposed | ||
by the taxing unit in the preceding tax year and the estimated | ||
amount of revenue for debt service attributable to ad valorem taxes | ||
imposed by the taxing unit in the current tax year. | ||
(k) The table following the statement required by | ||
Subsection (i)(2) must include two rows and four columns. The first | ||
column of the first row must be left blank, the second column of the | ||
first row must state the year corresponding to the preceding tax | ||
year, the third column of the first row must state the year | ||
corresponding to the current tax year, and the fourth column of the | ||
first row must be entitled "Change". The first column of the second | ||
row must be entitled "Total taxable value of property", the second | ||
column of the second row must state the total taxable value of | ||
property in the taxing unit in the preceding tax year, the third | ||
column of the second row must state the total taxable value of | ||
property in the taxing unit in the current tax year, and the fourth | ||
column of the second row must state the nominal difference between | ||
the total taxable value of property in the taxing unit in the | ||
preceding tax year and the total taxable value of property in the | ||
taxing unit in the current tax year. | ||
(l) The table following the statement required by | ||
Subsection (i)(3) must include two rows and four columns. The first | ||
column of the first row must be left blank, the second column of the | ||
first row must be entitled "No-new-revenue tax rate", the third | ||
column of the first row must be entitled "Voter-approval tax rate", | ||
and the fourth column of the first row must be entitled "Proposed | ||
tax rate". The first column of the second row must be entitled | ||
"Property tax revenue in current year", the second column of the | ||
second row must state the amount computed by multiplying the total | ||
taxable value of property in the taxing unit in the current tax year | ||
by the no-new-revenue tax rate of the taxing unit for the current | ||
tax year and dividing the product by 100, the third column of the | ||
second row must state the amount computed by multiplying the total | ||
taxable value of property in the taxing unit in the current tax year | ||
by the voter-approval tax rate of the taxing unit for the current | ||
tax year and dividing the product by 100, and the fourth column of | ||
the second row must state the amount computed by multiplying the | ||
total taxable value of property in the taxing unit in the current | ||
tax year by the proposed tax rate of the taxing unit for the current | ||
tax year and dividing the product by 100. | ||
SECTION 4. The change in law made by this Act applies only | ||
to a tax rate notice that is provided by a taxing unit on or after | ||
the effective date of this Act. A tax rate notice that is provided | ||
by a taxing unit before the effective date of this Act is governed | ||
by the law in effect on the date the notice is provided, and the | ||
former law is continued in effect for that purpose. | ||
SECTION 5. This Act takes effect January 1, 2024. |