Bill Text: TX HB490 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to the administration of the ad valorem tax system.

Sponsorship: Partisan Bill (Republican 5)

Status: (Introduced - Dead) 2019-02-20 - Referred to Ways & Means [HB490 Detail]

Download: Texas-2019-HB490-Introduced.html

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86R3750 SMH-F
By: Shine H.B. No. 490

A BILL TO BE ENTITLED
AN ACT
relating to the administration of the ad valorem tax system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 5, Tax Code, is amended by adding Section
5.01 to read as follows:
Sec. 5.01. PROPERTY TAX ADMINISTRATION ADVISORY BOARD.
(a) The comptroller shall appoint the property tax administration
advisory board to advise the comptroller with respect to the
division or divisions within the office of the comptroller with
primary responsibility for state administration of property
taxation and state oversight of appraisal districts. The advisory
board may make recommendations to the comptroller regarding
improving the effectiveness and efficiency of the property tax
system, best practices, and complaint resolution procedures. The
comptroller shall post the recommendations of the advisory board on
the comptroller's Internet website.
(b) The advisory board is composed of at least six members
appointed by the comptroller. The members of the board should
include:
(1) representatives of property tax payers, appraisal
districts, local tax offices, and school districts; and
(2) a person who has knowledge or experience in
conducting ratio studies.
(c) The members of the advisory board serve at the pleasure
of the comptroller.
(d) Any advice to the comptroller relating to a matter
described by Subsection (a) that is provided by a member of the
advisory board must be provided at a meeting called by the
comptroller.
(e) Chapter 2110, Government Code, does not apply to the
advisory board.
SECTION 2. Section 5.07, Tax Code, is amended by adding
Subsections (f), (g), (h), and (i) to read as follows:
(f) The comptroller shall prescribe tax rate calculation
forms to be used by the designated officer or employee of each
taxing unit to calculate and submit the no-new-revenue tax rate and
the rollback tax rate for the taxing unit as required by Chapter 26.
(g) The forms described by Subsection (f) must be in an
electronic format and:
(1) have blanks that can be filled in electronically;
(2) be capable of being certified by the designated
officer or employee after completion as accurately calculating the
applicable tax rates and using values that are the same as the
values shown in the taxing unit's certified appraisal roll; and
(3) be capable of being submitted electronically to
the chief appraiser of each appraisal district in which the taxing
unit is located.
(h) For purposes of Subsections (f) and (g), the comptroller
shall use the forms published on the comptroller's Internet website
as of January 1, 2019, modified as necessary to comply with the
requirements of those subsections. The forms may be updated, at the
discretion of the comptroller acting through the director of the
property tax assistance division, to reflect statutory changes that
do not substantially change the tax rate calculations provided for
by the form or for the purpose of making formatting or other
nonsubstantive changes. The director may determine, in the
director's discretion, whether a proposed change substantially
changes the tax rate calculations provided for by the forms and
therefore must be made in the manner provided by Subsection (i).
(i) The comptroller may revise the forms to reflect
statutory changes that substantially change the tax rate
calculations provided for by the forms or on receipt of a request in
writing. A revision under this subsection must be approved by the
agreement of a majority of the members of a committee selected by
the comptroller. The members of the committee must represent,
equally, taxpayers and either taxing units or persons designated by
taxing units. In the case of a revision for which the comptroller
receives a request in writing, the person requesting the revision
shall pay the costs of mediation if the comptroller determines that
mediation is required.
SECTION 3. Section 5.091, Tax Code, is amended to read as
follows:
Sec. 5.091. STATEWIDE LIST OF TAX RATES. (a) Each year the
comptroller shall prepare a list that includes the maintenance and
operations rate, the debt rate, and the total tax rate imposed by
each taxing unit in this state, as [other than a school district, if
the tax rate is] reported to the comptroller by each appraisal
district, for the year [preceding the year] in which the list is
prepared. The comptroller shall:
(1) prescribe the manner in which and deadline by
which appraisal districts are required to submit the tax rates to
the comptroller; and
(2) list the tax rates alphabetically according to:
(A) the county or counties in which each taxing
unit is located; and
(B) the name of each taxing unit [in descending
order].
(b) Not later than January 1 [December 31] of the following
[each] year, the comptroller shall publish on the comptroller's
Internet website the list required by Subsection (a). The
comptroller shall maintain the list on the comptroller's Internet
website until at least the third anniversary of the date the list is
required to be published.
SECTION 4. Section 5.102(a), Tax Code, is amended to read as
follows:
(a) At least once every two years, the comptroller shall
review the governance of each appraisal district, the taxpayer
assistance provided by each appraisal district, and the operating
and appraisal standards, procedures, and methodology used by each
appraisal district, to determine compliance with generally
accepted standards, procedures, and methodology. After
consultation with the property tax administration advisory board
[committee created under Section 403.302, Government Code], the
comptroller by rule may establish procedures and standards for
conducting and scoring the review.
SECTION 5. Sections 25.19(b) and (i), Tax Code, are amended
to read as follows:
(b) The chief appraiser shall separate real from personal
property and include in the notice for each:
(1) a list of the taxing units in which the property is
taxable;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for each taxing unit taxing the property;
(4) the appraised value of the property for the
current year, the kind and amount of each exemption and partial
exemption, if any, approved for the property for the current year
and for the preceding year, and, if an exemption or partial
exemption that was approved for the preceding year was canceled or
reduced for the current year, the amount of the exemption or partial
exemption canceled or reduced;
(5) [if the appraised value is greater than it was in
the preceding year, the amount of tax that would be imposed on the
property on the basis of the tax rate for the preceding year;
[(6)] in italic typeface, the following
statement: "The Texas Legislature does not set the amount of your
local taxes. Your property tax bill [burden] is set [decided] by
your locally elected officials, and all inquiries concerning your
taxes should be directed to those officials";
(6) [(7)] a detailed explanation of the time and
procedure for protesting the value;
(7) [(8)] the date and place the appraisal review
board will begin hearing protests; and
(8) [(9)] a brief explanation that the governing body
of each taxing unit decides whether or not taxes on the property
will increase and the appraisal district only determines the value
of the property.
(i) Delivery with a notice required by Subsection (a) or (g)
of a copy of the pamphlet published by the comptroller under Section
5.06 or a copy of the notice published by the chief appraiser under
Section 41.70 is sufficient to comply with the requirement that the
notice include the information specified by Subsection (b)(6)
[(b)(7)] or (g)(3), as applicable.
SECTION 6. Section 26.012(9), Tax Code, is redesignated as
Section 26.012(18), Tax Code, and amended to read as follows:
(18) "No-new-revenue [(9) "Effective] maintenance
and operations rate" means a rate expressed in dollars per $100 of
taxable value and calculated according to the following formula:
NO-NEW-REVENUE [EFFECTIVE] 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)
SECTION 7. The heading to Section 26.04, Tax Code, is
amended to read as follows:
Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
NO-NEW-REVENUE [EFFECTIVE] AND ROLLBACK TAX RATES.
SECTION 8. Section 26.04, Tax Code, is amended by amending
Subsections (b), (c), (d), (e), (e-1), (f), (g), (i), and (j) and
adding Subsections (d-1), (d-2), (e-2), (e-3), and (e-4) to read as
follows:
(b) The assessor shall submit the appraisal roll for the
taxing unit showing the total appraised, assessed, and taxable
values of all property and the total taxable value of new property
to the governing body of the taxing unit by August 1 or as soon
thereafter as practicable. By August 1 or as soon thereafter as
practicable, the taxing unit's collector shall certify [an estimate
of] the anticipated collection rate, as defined by Subsection (h),
for the current year to the governing body. If the collector
certified an anticipated collection rate in the preceding year and
the actual collection rate in that year exceeded the anticipated
rate, the collector shall also certify the amount of debt taxes
collected in excess of the anticipated amount in the preceding
year.
(c) After the assessor for the taxing unit submits the
appraisal roll for the taxing unit to the governing body of the
taxing unit as required by Subsection (b), an [An] officer or
employee designated by the governing body shall calculate the
no-new-revenue [effective] tax rate and the rollback tax rate for
the taxing unit, where:
(1) "No-new-revenue [Effective] tax rate" means a rate
expressed in dollars per $100 of taxable value calculated according
to the following formula:
NO-NEW-REVENUE [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 = (NO-NEW-REVENUE [EFFECTIVE]
MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
RATE
(d) The no-new-revenue [effective] tax rate for a county is
the sum of the no-new-revenue [effective] tax rates calculated for
each type of tax the county levies and the rollback tax rate for a
county is the sum of the rollback tax rates calculated for each type
of tax the county levies.
(d-1) The designated officer or employee shall use the tax
rate calculation forms prescribed by the comptroller under Section
5.07 in calculating the no-new-revenue tax rate and the rollback
tax rate.
(d-2) The designated officer or employee may not submit the
no-new-revenue tax rate and the rollback tax rate to the governing
body of the taxing unit and the taxing unit may not adopt a tax rate
until the designated officer or employee certifies on the tax rate
calculation forms that the designated officer or employee has
accurately calculated the tax rates and has used values that are the
same as the values shown in the taxing unit's certified appraisal
roll in performing the calculations.
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. The designated officer or employee [He] shall
deliver by mail to each property owner in the taxing unit, [or]
publish in a newspaper, or post prominently on the home page of the
taxing unit's Internet website, if applicable, in the form
prescribed by the comptroller:
(1) the no-new-revenue [effective] tax rate, the
rollback tax rate, and an explanation of how they were calculated;
(2) the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding existing debt
obligation;
(3) a schedule of the taxing unit's debt obligations
showing:
(A) the amount of principal and interest that
will be paid to service the taxing unit's debts in the next year
from property tax revenue, including payments of lawfully incurred
contractual obligations providing security for the payment of the
principal of and interest on bonds and other evidences of
indebtedness issued on behalf of the taxing unit by another
political subdivision and, if the taxing unit is created under
Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, payments on debts that the taxing unit anticipates to
incur in the next calendar year;
(B) the amount by which taxes imposed for debt
are to be increased because of the taxing unit's anticipated
collection rate; and
(C) the total of the amounts listed in Paragraphs
(A)-(B), less any amount collected in excess of the previous year's
anticipated collections certified as provided in Subsection (b);
(4) the amount of additional sales and use tax revenue
anticipated in calculations under Section 26.041;
(5) a statement that the adoption of a tax rate equal
to the no-new-revenue [effective] tax rate would result in an
increase or decrease, as applicable, in the amount of taxes imposed
by the taxing unit as compared to last year's levy, and the amount
of the increase or decrease;
(6) in the year that a taxing unit calculates an
adjustment under Subsection (i) or (j), a schedule that includes
the following elements:
(A) the name of the taxing unit discontinuing the
department, function, or activity;
(B) the amount of property tax revenue spent by
the taxing unit listed under Paragraph (A) to operate the
discontinued department, function, or activity in the 12 months
preceding the month in which the calculations required by this
chapter are made; and
(C) the name of the taxing unit that operates a
distinct department, function, or activity in all or a majority of
the territory of a taxing unit that has discontinued operating the
distinct department, function, or activity; and
(7) in the year following the year in which a taxing
unit raised its rollback tax rate as required by Subsection (j), a
schedule that includes the following elements:
(A) the amount of property tax revenue spent by
the taxing unit to operate the department, function, or activity
for which the taxing unit raised the rollback tax rate as required
by Subsection (j) for the 12 months preceding the month in which the
calculations required by this chapter are made; and
(B) the amount published by the taxing unit in
the preceding tax year under Subdivision (6)(B).
(e-1) The tax rate certification requirements imposed by
Subsection (d-2) and the notice requirements imposed by Subsections
(e)(1)-(6) do not apply to a school district.
(e-2) By August 7 or as soon thereafter as practicable, the
chief appraiser of each appraisal district shall deliver by regular
mail or e-mail to each owner of property located in the appraisal
district a notice that the estimated amount of taxes to be imposed
on the owner's property by each taxing unit in which the property is
located may be found in the property tax database maintained by the
appraisal district under Section 26.17. The notice must include:
(1) a statement directing the property owner to an
Internet website from which the owner may access information
related to the actions taken or proposed to be taken by each taxing
unit in which the property is located that may affect the taxes
imposed on the owner's property;
(2) a statement that the property owner may request
from the county assessor-collector for the county in which the
property is located or, if the county assessor-collector does not
assess taxes for the county, the person who assesses taxes for the
county under Section 6.24(b), contact information for the assessor
for each taxing unit in which the property is located, who must
provide the information described by this subsection to the owner
on request; and
(3) the name, address, and telephone number of the
county assessor-collector for the county in which the property is
located or, if the county assessor-collector does not assess taxes
for the county, the person who assesses taxes for the county under
Section 6.24(b).
(e-3) The statement described by Subsection (e-2)(1) must
include a heading that is in bold, capital letters in type larger
than that used in the other provisions of the notice.
(e-4) The comptroller:
(1) with the advice of the property tax administration
advisory board, shall adopt rules prescribing the form of the
notice required by Subsection (e-2); and
(2) may adopt rules regarding the format and delivery
of the notice.
(f) If as a result of consolidation of taxing units a taxing
unit includes territory that was in two or more taxing units in the
preceding year, the amount of taxes imposed in each in the preceding
year is combined for purposes of calculating the no-new-revenue
[effective] and rollback tax rates under this section.
(g) A person who owns taxable property is entitled to an
injunction prohibiting the taxing unit in which the property is
taxable from adopting a tax rate if the assessor or designated
officer or employee of the taxing unit, the chief appraiser of the
applicable appraisal district, or the taxing unit, as applicable,
has not complied with the computation, [or] publication, or posting
requirements of this section or Section 26.17 or 26.18 [and the
failure to comply was not in good faith]. It is a defense in an
action for an injunction under this subsection that the failure to
comply was in good faith.
(i) This subsection applies to a taxing unit that has agreed
by written contract to transfer a distinct department, function, or
activity to another taxing unit and discontinues operating that
distinct department, function, or activity if the operation of that
department, function, or activity in all or a majority of the
territory of the taxing unit is continued by another existing
taxing unit or by a new taxing unit. The rollback tax rate of a
taxing unit to which this subsection applies in the first tax year
in which a budget is adopted that does not allocate revenue to the
discontinued department, function, or activity is calculated as
otherwise provided by this section, except that last year's levy
used to calculate the no-new-revenue [effective] maintenance and
operations rate of the taxing unit is reduced by the amount of
maintenance and operations tax revenue spent by the taxing unit to
operate the department, function, or activity for the 12 months
preceding the month in which the calculations required by this
chapter are made and in which the taxing unit operated the
discontinued department, function, or activity. If the taxing unit
did not operate that department, function, or activity for the full
12 months preceding the month in which the calculations required by
this chapter are made, the taxing unit shall reduce last year's levy
used for calculating the no-new-revenue [effective] maintenance
and operations rate of the taxing unit by the amount of the revenue
spent in the last full fiscal year in which the taxing unit operated
the discontinued department, function, or activity.
(j) This subsection applies to a taxing unit that had agreed
by written contract to accept the transfer of a distinct
department, function, or activity from another taxing unit and
operates a distinct department, function, or activity if the
operation of a substantially similar department, function, or
activity in all or a majority of the territory of the taxing unit
has been discontinued by another taxing unit, including a dissolved
taxing unit. The rollback tax rate of a taxing unit to which this
subsection applies in the first tax year after the other taxing unit
discontinued the substantially similar department, function, or
activity in which a budget is adopted that allocates revenue to the
department, function, or activity is calculated as otherwise
provided by this section, except that last year's levy used to
calculate the no-new-revenue [effective] maintenance and
operations rate of the taxing unit is increased by the amount of
maintenance and operations tax revenue spent by the taxing unit
that discontinued operating the substantially similar department,
function, or activity to operate that department, function, or
activity for the 12 months preceding the month in which the
calculations required by this chapter are made and in which the
taxing unit operated the discontinued department, function, or
activity. If the taxing unit did not operate the discontinued
department, function, or activity for the full 12 months preceding
the month in which the calculations required by this chapter are
made, the taxing unit may increase last year's levy used to
calculate the no-new-revenue [effective] maintenance and
operations rate by an amount not to exceed the amount of property
tax revenue spent by the discontinuing taxing unit to operate the
discontinued department, function, or activity in the last full
fiscal year in which the discontinuing taxing unit operated the
department, function, or activity.
SECTION 9. Sections 26.041(a), (b), (c), (e), (g), and (h),
Tax Code, are amended to read as follows:
(a) In the first year in which an additional sales and use
tax is required to be collected, the no-new-revenue [effective] tax
rate and rollback tax rate for the taxing unit are calculated
according to the following formulas:
NO-NEW-REVENUE [EFFECTIVE] TAX RATE = [(LAST YEAR'S
LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
PROPERTY VALUE)] - SALES TAX GAIN RATE
and
ROLLBACK TAX RATE = (NO-NEW-REVENUE [EFFECTIVE]
MAINTENANCE AND OPERATIONS RATE x 1.08) + 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) [of this section] by the
current total value.
(b) Except as provided by Subsections (a) and (c) [of this
section], in a year in which a taxing unit imposes an additional
sales and use tax, the rollback tax rate for the taxing unit is
calculated according to the following formula, regardless of
whether the taxing unit levied a property tax in the preceding year:
ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
OPERATIONS EXPENSE x 1.08) / ([TOTAL] 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) [of this section] by the current
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 no-new revenue [effective] tax rate and rollback
tax rate for the taxing unit are calculated according to the
following formulas:
NO-NEW-REVENUE [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 1.08) / ([TOTAL] 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.
(e) If a city that imposes an additional sales and use tax
receives payments under the terms of a contract executed before
January 1, 1986, in which the city agrees not to annex certain
property or a certain area and the owners or lessees of the property
or of property in the area agree to pay at least annually to the city
an amount determined by reference to all or a percentage of the
property tax rate of the city and all or a part of the value of the
property subject to the agreement or included in the area subject to
the agreement, the governing body, by order adopted by a majority
vote of the governing body, may direct the designated officer or
employee to add to the no-new-revenue [effective] and rollback tax
rates the amount that, when applied to the total taxable value
submitted to the governing body, would produce an amount of taxes
equal to the difference between the total amount of payments for the
tax year under contracts described by this subsection under the
rollback tax rate calculated under this section and the total
amount of payments for the tax year that would have been obligated
to the city if the city had not adopted an additional sales and use
tax.
(g) If the rate of the additional sales and use tax is
increased, the designated officer or employee shall make two
projections, in the manner provided by Subsection (d) [of this
section], of the revenue generated by the additional sales and use
tax in the following year. The first projection must take into
account the increase and the second projection must not take into
account the increase. The designated officer or employee shall
then subtract the amount of the result of the second projection from
the amount of the result of the first projection to determine the
revenue generated as a result of the increase in the additional
sales and use tax. In the first year in which an additional sales
and use tax is increased, the no-new-revenue [effective] tax rate
for the taxing unit is the no-new-revenue [effective] tax rate
before the increase minus a number the numerator of which is the
revenue generated as a result of the increase in the additional
sales and use tax, as determined under this subsection, and the
denominator of which is the current total value minus the new
property value.
(h) If the rate of the additional sales and use tax is
decreased, the designated officer or employee shall make two
projections, in the manner provided by Subsection (d) [of this
section], of the revenue generated by the additional sales and use
tax in the following year. The first projection must take into
account the decrease and the second projection must not take into
account the decrease. The designated officer or employee shall
then subtract the amount of the result of the first projection from
the amount of the result of the second projection to determine the
revenue lost as a result of the decrease in the additional sales and
use tax. In the first year in which an additional sales and use tax
is decreased, the no-new-revenue [effective] tax rate for the
taxing unit is the no-new-revenue [effective] tax rate before the
decrease plus a number the numerator of which is the revenue lost as
a result of the decrease in the additional sales and use tax, as
determined under this subsection, and the denominator of which is
the current total value minus the new property value.
SECTION 10. The heading to Section 26.043, Tax Code, is
amended to read as follows:
Sec. 26.043. ROLLBACK AND NO-NEW-REVENUE [EFFECTIVE] TAX
RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
SECTION 11. Sections 26.043(a) and (b), Tax Code, are
amended to read as follows:
(a) In the tax year in which a city has set an election on
the question of whether to impose a local sales and use tax under
Subchapter H, Chapter 453, Transportation Code, the officer or
employee designated to make the calculations provided by Section
26.04 may not make those calculations until the outcome of the
election is determined. If the election is determined in favor of
the imposition of the tax, the designated officer or employee
[representative] shall subtract from the city's rollback and
no-new-revenue [effective] tax rates the amount that, if applied to
the city's current total value, would impose an amount equal to the
amount of property taxes budgeted in the current tax year to pay for
expenses related to mass transit services.
(b) In a tax year to which this section applies, a reference
in this chapter to the city's no-new-revenue [effective] or
rollback tax rate refers to that rate as adjusted under this
section.
SECTION 12. The heading to Section 26.044, Tax Code, is
amended to read as follows:
Sec. 26.044. NO-NEW-REVENUE [EFFECTIVE] TAX RATE TO PAY FOR
STATE CRIMINAL JUSTICE MANDATE.
SECTION 13. Sections 26.044(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) The first time that a county adopts a tax rate after
September 1, 1991, in which the state criminal justice mandate
applies to the county, the no-new-revenue [effective] maintenance
and operation rate for the county is increased by the rate
calculated according to the following formula:
(State Criminal Justice Mandate) / (Current Total
Value - New Property Value)
(b) In the second and subsequent years that a county adopts
a tax rate, if the amount spent by the county for the state criminal
justice mandate increased over the previous year, the
no-new-revenue [effective] maintenance and operation rate for the
county is increased by the rate calculated according to the
following formula:
(This Year's State Criminal Justice Mandate - Previous
Year's State Criminal Justice Mandate) / (Current
Total Value - New Property Value)
(c) The county shall include a notice of the increase in the
no-new-revenue [effective] maintenance and operation rate provided
by this section, including a description and amount of the state
criminal justice mandate, in the information published under
Section 26.04(e) and Section 26.06(b) [of this code].
SECTION 14. Sections 26.0441(a), (b), and (c), Tax Code,
are amended to read as follows:
(a) In the first tax year in which a taxing unit adopts a tax
rate after January 1, 2000, and in which the enhanced minimum
eligibility standards for indigent health care established under
Section 61.006, Health and Safety Code, apply to the taxing unit,
the no-new-revenue [effective] maintenance and operations rate for
the taxing unit is increased by the rate computed according to the
following formula:
Amount of Increase = Enhanced Indigent Health Care
Expenditures / (Current Total Value - New Property
Value)
(b) In each subsequent tax year, if the taxing unit's
enhanced indigent health care expenses exceed the amount of those
expenses for the preceding year, the no-new-revenue [effective]
maintenance and operations rate for the taxing unit is increased by
the rate computed according to the following formula:
Amount of Increase = (Current Tax Year's Enhanced
Indigent Health Care Expenditures - Preceding Tax
Year's Indigent Health Care Expenditures) / (Current
Total Value - New Property Value)
(c) The taxing unit shall include a notice of the increase
in its no-new-revenue [effective] maintenance and operations rate
provided by this section, including a brief description and the
amount of the enhanced indigent health care expenditures, in the
information published under Section 26.04(e) and, if applicable,
Section 26.06(b).
SECTION 15. Section 26.05, Tax Code, is amended by amending
Subsections (b), (c), (d), (e), and (g) and adding Subsections
(d-1) and (d-2) 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 [effective] 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 sum of the no-new-revenue [effective]
maintenance and operations tax rate of the district as determined
under Section 26.08(i) and the district's current debt 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. A motion to adopt an ordinance, resolution, or order setting
a tax rate that exceeds the no-new-revenue [effective] 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 [effective] 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
[effective] 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
[EFFECTIVE] 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 any Internet website
operated by 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
[effective] 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
[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
APPROXIMATELY $(Insert amount)."
(c) If the governing body of a taxing unit does not adopt a
tax rate before the date required by Subsection (a), the tax rate
for the taxing unit for that tax year is the lower of the
no-new-revenue [effective] tax rate calculated for that tax year or
the tax rate adopted by the taxing unit for the preceding tax year.
A tax rate established by this subsection is treated as an adopted
tax rate. Before the fifth day after the establishment of a tax
rate by this subsection, the governing body of the taxing unit must
ratify the applicable tax rate in the manner required by Subsection
(b).
(d) The governing body of a taxing unit other than a school
district may not adopt a tax rate that exceeds the lower of the
rollback tax rate or the no-new-revenue [effective] tax rate
calculated as provided by this chapter until the governing body has
held two public hearings on the proposed tax rate and has otherwise
complied with Section 26.06 and Section 26.065. The governing body
of a taxing unit shall reduce a tax rate set by law or by vote of the
electorate to the lower of the rollback tax rate or the
no-new-revenue [effective] tax rate and may not adopt a higher rate
unless it first complies with Section 26.06.
(d-1) The governing body of a taxing unit other than a
school district may not hold a public hearing on a proposed tax rate
or a public meeting to adopt a tax rate until the seventh day after
the date the chief appraiser of each appraisal district in which the
taxing unit participates has:
(1) delivered the notice required by Section
26.04(e-2); and
(2) complied with Section 26.17(e).
(d-2) Notwithstanding Subsection (a), the governing body of
a taxing unit other than a school district may not adopt a tax rate
until the chief appraiser of each appraisal district in which the
taxing unit participates has complied with Subsection (d-1).
(e) A person who owns taxable property is entitled to an
injunction restraining the collection of taxes by a taxing unit in
which the property is taxable if the taxing unit has not complied
with the requirements of this section or Section 26.04 [and the
failure to comply was not in good faith]. It is a defense in an
action for an injunction under this subsection that the failure to
comply was in good faith. An action to enjoin the collection of
taxes must be filed not later than the 15th day after the date the
taxing unit adopts a tax rate. A property owner is not required to
pay the taxes imposed by a taxing unit on the owner's property while
an action filed by the property owner to enjoin the collection of
taxes imposed by the taxing unit on the owner's property is pending.
If the property owner pays the taxes and subsequently prevails in
the action, the property owner is entitled to a refund of the taxes
paid, together with reasonable attorney's fees and court costs.
The property owner is not required to apply to the collector for the
taxing unit to receive the refund [prior to the date a taxing unit
delivers substantially all of its tax bills].
(g) Notwithstanding Subsection (a), the governing body of a
school district that elects to adopt a tax rate before the adoption
of a budget for the fiscal year that begins in the current tax year
may adopt a tax rate for the current tax year before receipt of the
certified appraisal roll for the school district if the chief
appraiser of the appraisal district in which the school district
participates has certified to the assessor for the school district
an estimate of the taxable value of property in the school district
as provided by Section 26.01(e). If a school district adopts a tax
rate under this subsection, the no-new-revenue [effective] tax rate
and the rollback tax rate of the district shall be calculated based
on the certified estimate of taxable value.
SECTION 16. Sections 26.052(c) and (e), Tax Code, are
amended to read as follows:
(c) A taxing unit to which this section applies may provide
public notice of its proposed tax rate in one [either] of the
following methods not later than the seventh day before the date on
which the tax rate is adopted:
(1) mailing a notice of the proposed tax rate to each
owner of taxable property in the taxing unit; [or]
(2) publishing notice of the proposed tax rate in the
legal notices section of a newspaper having general circulation in
the taxing unit; or
(3) posting notice of the proposed tax rate
prominently on the home page of the Internet website maintained by
the taxing unit, if applicable.
(e) Public notice provided under Subsection (c) must
specify:
(1) the tax rate that the governing body proposes to
adopt;
(2) the date, time, and location of the meeting of the
governing body of the taxing unit at which the governing body will
consider adopting the proposed tax rate; and
(3) if the proposed tax rate for the taxing unit
exceeds the taxing unit's no-new-revenue [effective] tax rate
calculated as provided by Section 26.04, a statement substantially
identical to the following: "The proposed tax rate would increase
total taxes in (name of taxing unit) by (percentage by which the
proposed tax rate exceeds the no-new-revenue [effective] tax
rate)."
SECTION 17. Sections 26.06(b), (c), (d), and (e), Tax Code,
are amended to read as follows:
(b) The notice of a public hearing may not be smaller than
one-quarter page of a standard-size or a tabloid-size newspaper,
and the headline on the notice must be in 24-point or larger type.
The notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"The (name of the taxing unit) will hold two public hearings
on a proposal to increase total tax revenues from properties on the
tax roll in the preceding tax year by (percentage by which proposed
tax rate exceeds lower of rollback tax rate or no-new-revenue
[effective] tax rate calculated under this chapter) percent. Your
individual taxes may increase at a greater or lesser rate, or even
decrease, depending on the tax rate that is adopted and 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]. The change in the taxable value of your property in
relation to the change in the taxable value of all other property
determines the distribution of the tax burden among all property
owners.
"The first public hearing will be held on (date and time) at
(meeting place).
"The second public hearing will be held on (date and time) at
(meeting place).
"(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.)
"The average taxable value of a residence homestead in (name
of taxing unit) last year was $____ (average taxable value of a
residence homestead in the taxing unit for the preceding tax year,
disregarding residence homestead exemptions available only to
disabled persons or persons 65 years of age or older). Based on
last year's tax rate of $____ (preceding year's adopted tax rate)
per $100 of taxable value, the amount of taxes imposed last year on
the average home was $____ (tax on average taxable value of a
residence homestead in the taxing unit for the preceding tax year,
disregarding residence homestead exemptions available only to
disabled persons or persons 65 years of age or older).
"The average taxable value of a residence homestead in (name
of taxing unit) this year is $____ (average taxable value of a
residence homestead in the taxing unit for the current tax year,
disregarding residence homestead exemptions available only to
disabled persons or persons 65 years of age or older). If the
governing body adopts the no-new-revenue [effective] tax rate for
this year of $____ (no-new-revenue [effective] tax rate) per $100
of taxable value, the amount of taxes imposed this year on the
average home would be $____ (tax on average taxable value of a
residence homestead in the taxing unit for the current tax year,
disregarding residence homestead exemptions available only to
disabled persons or persons 65 years of age or older).
"If the governing body adopts the proposed tax rate of $____
(proposed tax rate) per $100 of taxable value, the amount of taxes
imposed this year on the average home would be $____ (tax on the
average taxable value of a residence in the taxing unit for the
current year disregarding residence homestead exemptions available
only to disabled persons or persons 65 years of age or older).
"Members of the public are encouraged to attend the hearings
and express their views."
(c) The notice of a public hearing under this section may be
delivered by mail to each property owner in the taxing unit, [or may
be] published in a newspaper, or posted prominently on the home page
of the Internet website operated by the taxing unit, if applicable.
If the notice is published in a newspaper, it may not be in the part
of the paper in which legal notices and classified advertisements
appear. If the taxing unit posts the notice on [operates] an
Internet website operated by the taxing unit, the notice must be
posted on the website from the date the notice is first posted
[published] until the second public hearing is concluded.
(d) At the public hearings the governing body shall announce
the date, time, and place of the meeting at which it will vote on the
proposed tax rate. After each hearing the governing body shall give
notice of the meeting at which it will vote on the proposed tax rate
and the notice shall be in the same form as prescribed by
Subsections (b) and (c), except that it must state the following:
"NOTICE OF TAX REVENUE INCREASE
"The (name of the taxing unit) conducted public hearings on
(date of first hearing) and (date of second hearing) on a proposal
to increase the total tax revenues of the (name of the taxing unit)
from properties on the tax roll in the preceding year by (percentage
by which proposed tax rate exceeds lower of rollback tax rate or
no-new-revenue [effective] tax rate calculated under this chapter)
percent.
"The total tax revenue proposed to be raised last year at last
year's tax rate of (insert tax rate for the preceding year) for each
$100 of taxable value was (insert total amount of taxes imposed in
the preceding year).
"The total tax revenue proposed to be raised this year at the
proposed tax rate of (insert proposed tax rate) for each $100 of
taxable value, excluding tax revenue to be raised from new property
added to the tax roll this year, is (insert amount computed by
multiplying proposed tax rate by the difference between current
total value and new property value).
"The total tax revenue proposed to be raised this year at the
proposed tax rate of (insert proposed tax rate) for each $100 of
taxable value, including tax revenue to be raised from new property
added to the tax roll this year, is (insert amount computed by
multiplying proposed tax rate by current total value).
"The (governing body of the taxing unit) is scheduled to vote
on the tax rate that will result in that tax increase at a public
meeting to be held on (date of meeting) at (location of meeting,
including mailing address) at (time of meeting).
"The (governing body of the taxing unit) proposes to use the
increase in total tax revenue for the purpose of (description of
purpose of increase)."
(e) The meeting to vote on the tax increase may not be
earlier than the third day or later than the 14th day after the date
of the second public hearing. The meeting must be held inside the
boundaries of the taxing unit in a publicly owned building or, if a
suitable publicly owned building is not available, in a suitable
building to which the public normally has access. If the governing
body does not adopt a tax rate that exceeds the lower of the
rollback tax rate or the no-new-revenue [effective] tax rate by the
14th day, it must give a new notice under Subsection (d) before it
may adopt a rate that exceeds the lower of the rollback tax rate or
the no-new-revenue [effective] tax rate.
SECTION 18. Section 26.065(b), Tax Code, is amended to read
as follows:
(b) If the taxing unit owns, operates, or controls an
Internet website, the taxing unit shall post notice of the public
hearing prominently on the home page of the website continuously
for at least seven days immediately before the public hearing on the
proposed tax rate increase and at least seven days immediately
before the date of the vote proposing the increase in the tax rate.
SECTION 19. Sections 26.08(g), (i), (n), and (p), Tax Code,
are amended to read as follows:
(g) In a school district that received distributions from an
equalization tax imposed under former Chapter 18, Education Code,
the no-new-revenue [effective] rate of that tax as of the date of
the county unit system's abolition is added to the district's
rollback tax rate.
(i) For purposes of this section, the no-new-revenue
[effective] maintenance and operations tax rate of a school
district is the tax rate that, applied to the current total value
for the district, would impose taxes in an amount that, when added
to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, would provide the same amount
of state funds distributed under Chapter 42, Education Code, and
maintenance and operations taxes of the district per student in
weighted average daily attendance for that school year that would
have been available to the district in the preceding year if the
funding elements for Chapters 41 and 42, Education Code, for the
current year had been in effect for the preceding year.
(n) For purposes of this section, the rollback tax rate of a
school district whose maintenance and operations tax rate for the
2005 tax year was $1.50 or less per $100 of taxable value is:
(1) for the 2006 tax year, the sum of the rate that is
equal to 88.67 percent of the maintenance and operations tax rate
adopted by the district for the 2005 tax year, the rate of $0.04 per
$100 of taxable value, and the district's current debt rate; and
(2) for the 2007 and subsequent tax years, the lesser
of the following:
(A) the sum of the following:
(i) the rate per $100 of taxable value that
is equal to the product of the state compression percentage, as
determined under Section 42.2516, Education Code, for the current
year and $1.50;
(ii) the rate of $0.04 per $100 of taxable
value;
(iii) the rate that is equal to the sum of
the differences for the 2006 and each subsequent tax year between
the adopted tax rate of the district for that year if the rate was
approved at an election under this section and the rollback tax rate
of the district for that year; and
(iv) the district's current debt rate; or
(B) the sum of the following:
(i) the no-new-revenue [effective]
maintenance and operations tax rate of the district as computed
under Subsection (i) [or (k), as applicable];
(ii) the rate per $100 of taxable value that
is equal to the product of the state compression percentage, as
determined under Section 42.2516, Education Code, for the current
year and $0.06; and
(iii) the district's current debt rate.
(p) Notwithstanding Subsections (i), (n), and (o), if for
the preceding tax year a school district adopted a maintenance and
operations tax rate that was less than the district's
no-new-revenue [effective] maintenance and operations tax rate for
that preceding tax year, the rollback tax rate of the district for
the current tax year is calculated as if the district adopted a
maintenance and operations tax rate for the preceding tax year that
was equal to the district's no-new-revenue [effective] maintenance
and operations tax rate for that preceding tax year.
SECTION 20. Section 26.16, Tax Code, is amended by amending
Subsections (a) and (d) and adding Subsection (a-1) to read as
follows:
(a) The county assessor-collector for each county that
maintains an Internet website shall post on the website of the
county the following information for the most recent five tax years
[beginning with the 2012 tax year] for each taxing unit all or part
of the territory of which is located in the county:
(1) the adopted tax rate;
(2) the maintenance and operations rate;
(3) the debt rate;
(4) the no-new-revenue [effective] tax rate;
(5) the no-new-revenue [effective] maintenance and
operations rate; and
(6) the rollback tax rate.
(a-1) For purposes of Subsection (a), a reference to the
no-new-revenue tax rate or the no-new-revenue maintenance and
operations rate includes the equivalent effective tax rate or
effective maintenance and operations rate for a preceding year.
This subsection expires January 1, 2026.
(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 no-new-revenue [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 no-new-revenue [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 taxing unit other than a school district, the 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 school district, an election will
automatically be held if the district wishes to adopt a tax rate in
excess of the district's rollback tax rate."
SECTION 21. Chapter 26, Tax Code, is amended by adding
Sections 26.17 and 26.18 to read as follows:
Sec. 26.17. DATABASE OF PROPERTY-TAX-RELATED INFORMATION.
(a) The chief appraiser of each appraisal district shall create and
maintain a property tax database that:
(1) is identified by the name of the county in which
the appraisal district is established instead of the name of the
appraisal district;
(2) contains information that is provided by
designated officers or employees of the taxing units that are
located in the appraisal district in the manner required by the
comptroller;
(3) is continuously updated as preliminary and revised
data become available to and are provided by the designated
officers or employees of taxing units;
(4) is accessible to the public; and
(5) is searchable by property address and owner,
except to the extent that access to the information in the database
is restricted by Section 25.025 or 25.026.
(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 rollback 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 weighted student that the
district received in the school year beginning in the preceding tax
year; and
(B) the rollback 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 weighted student that the
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 and location of each 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 and location of the public meeting 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.
(c) The database must provide a link to the Internet website
used by each taxing unit in which the property is located to post
the information described by Section 26.18.
(d) The officer or employee designated by the governing body
of each taxing unit in which the property is located to calculate
the no-new-revenue tax rate and the rollback tax rate for the taxing
unit must electronically incorporate into the database:
(1) the information described by Subsections (b)(5),
(6), (7), (12), and (13), as applicable, as the information becomes
available; and
(2) the tax rate calculation forms prepared under
Section 26.04(d-1) at the same time the designated officer or
employee submits the tax rates to the governing body of the taxing
unit under Section 26.04(e).
(e) The chief appraiser shall make the information
described by Subsection (d)(1) and the tax rate calculation forms
described by Subsection (d)(2) available to the public not later
than the third business day after the date the information and forms
are incorporated into the database.
Sec. 26.18. POSTING OF TAX RATE AND BUDGET INFORMATION BY
TAXING UNIT ON WEBSITE. Each taxing unit shall maintain an Internet
website or have access to a generally accessible Internet website
that may be used for the purposes of this section. Each taxing unit
shall post or cause to be posted on the Internet website the
following information in a format prescribed by the comptroller:
(1) the name of each member of the governing body of
the taxing unit;
(2) the mailing address, e-mail address, and telephone
number of the taxing unit;
(3) the official contact information for each member
of the governing body of the taxing unit, if that information is
different from the information described by Subdivision (2);
(4) the taxing unit's budget for the preceding two
years;
(5) the taxing unit's proposed or adopted budget for
the current year;
(6) the change in the amount of the taxing unit's
budget from the preceding year to the current year, by dollar amount
and percentage;
(7) in the case of a taxing unit other than a school
district, the amount of property tax revenue budgeted for
maintenance and operations for:
(A) the preceding two years; and
(B) the current year;
(8) in the case of a taxing unit other than a school
district, the amount of property tax revenue budgeted for debt
service for:
(A) the preceding two years; and
(B) the current year;
(9) the tax rate for maintenance and operations
adopted by the taxing unit for the preceding two years;
(10) in the case of a taxing unit other than a school
district, the tax rate for debt service adopted by the taxing unit
for the preceding two years;
(11) in the case of a school district, the interest and
sinking fund tax rate adopted by the district for the preceding two
years;
(12) the tax rate for maintenance and operations
proposed by the taxing unit for the current year;
(13) in the case of a taxing unit other than a school
district, the tax rate for debt service proposed by the taxing unit
for the current year;
(14) in the case of a school district, the interest and
sinking fund tax rate proposed by the district for the current year;
and
(15) the most recent financial audit of the taxing
unit.
SECTION 22. Section 45.105(e), Education Code, is amended
to read as follows:
(e) The governing body of an independent school district
that governs a junior college district under Subchapter B, Chapter
130, in a county with a population of more than two million may
dedicate a specific percentage of the local tax levy to the use of
the junior college district for facilities and equipment or for the
maintenance and operating expenses of the junior college district.
To be effective, the dedication must be made by the governing body
on or before the date on which the governing body adopts its tax
rate for a year. The amount of local tax funds derived from the
percentage of the local tax levy dedicated to a junior college
district from a tax levy may not exceed the amount that would be
levied by five percent of the no-new-revenue [effective] tax rate
for the tax year calculated as provided by Section 26.04, Tax Code,
on all property taxable by the school district. All real property
purchased with these funds is the property of the school district,
but is subject to the exclusive control of the governing body of the
junior college district for as long as the junior college district
uses the property for educational purposes.
SECTION 23. 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 [of this code] was authorized by [Subsection (e)
of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
this code] to dedicate a portion of its tax levy to the junior
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 [Subsection (e) of]
Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
in the last dedication before the divestment. In subsequent years,
the tax rate of the junior college district is subject to Section
26.07, Tax Code.
SECTION 24. Section 403.302(o), Government Code, is amended
to read as follows:
(o) The comptroller shall adopt rules governing the conduct
of the study after consultation with the comptroller's property tax
administration advisory board [Comptroller's Property Value Study
Advisory Committee].
SECTION 25. Section 102.007(d), Local Government Code, is
amended to read as follows:
(d) An adopted budget must contain a cover page that
includes:
(1) one of the following statements in 18-point or
larger type that accurately describes the adopted budget:
(A) "This budget will raise more revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of increase), which is a (insert percentage increase)
percent increase from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll).";
(B) "This budget will raise less revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of decrease), which is a (insert percentage decrease)
percent decrease from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll)."; or
(C) "This budget will raise the same amount of
revenue from property taxes as last year's budget. The property
tax revenue to be raised from new property added to the tax roll
this year is (insert amount computed by multiplying the proposed
tax rate by the value of new property added to the roll).";
(2) the record vote of each member of the governing
body by name voting on the adoption of the budget;
(3) the municipal property tax rates for the preceding
fiscal year, and each municipal property tax rate that has been
adopted or calculated for the current fiscal year, including:
(A) the property tax rate;
(B) the no-new-revenue [effective] tax rate;
(C) the no-new-revenue [effective] maintenance
and operations tax rate;
(D) the rollback tax rate; and
(E) the debt rate; and
(4) the total amount of municipal debt obligations.
SECTION 26. Section 111.008(d), Local Government Code, is
amended to read as follows:
(d) An adopted budget must contain a cover page that
includes:
(1) one of the following statements in 18-point or
larger type that accurately describes the adopted budget:
(A) "This budget will raise more revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of increase), which is a (insert percentage increase)
percent increase from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll).";
(B) "This budget will raise less revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of decrease), which is a (insert percentage decrease)
percent decrease from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll)."; or
(C) "This budget will raise the same amount of
revenue from property taxes as last year's budget. The property
tax revenue to be raised from new property added to the tax roll
this year is (insert amount computed by multiplying the proposed
tax rate by the value of new property added to the roll).";
(2) the record vote of each member of the
commissioners court by name voting on the adoption of the budget;
(3) the county property tax rates for the preceding
fiscal year, and each county property tax rate that has been adopted
or calculated for the current fiscal year, including:
(A) the property tax rate;
(B) the no-new-revenue [effective] tax rate;
(C) the no-new-revenue [effective] maintenance
and operations tax rate;
(D) the rollback tax rate; and
(E) the debt rate; and
(4) the total amount of county debt obligations.
SECTION 27. Section 111.039(d), Local Government Code, is
amended to read as follows:
(d) An adopted budget must contain a cover page that
includes:
(1) one of the following statements in 18-point or
larger type that accurately describes the adopted budget:
(A) "This budget will raise more revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of increase), which is a (insert percentage increase)
percent increase from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll).";
(B) "This budget will raise less revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of decrease), which is a (insert percentage decrease)
percent decrease from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll)."; or
(C) "This budget will raise the same amount of
revenue from property taxes as last year's budget. The property
tax revenue to be raised from new property added to the tax roll
this year is (insert amount computed by multiplying the proposed
tax rate by the value of new property added to the roll).";
(2) the record vote of each member of the
commissioners court by name voting on the adoption of the budget;
(3) the county property tax rates for the preceding
fiscal year, and each county property tax rate that has been adopted
or calculated for the current fiscal year, including:
(A) the property tax rate;
(B) the no-new-revenue [effective] tax rate;
(C) the no-new-revenue [effective] maintenance
and operations tax rate;
(D) the rollback tax rate; and
(E) the debt rate; and
(4) the total amount of county debt obligations.
SECTION 28. Section 111.068(c), Local Government Code, is
amended to read as follows:
(c) An adopted budget must contain a cover page that
includes:
(1) one of the following statements in 18-point or
larger type that accurately describes the adopted budget:
(A) "This budget will raise more revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of increase), which is a (insert percentage increase)
percent increase from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll).";
(B) "This budget will raise less revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of decrease), which is a (insert percentage decrease)
percent decrease from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll)."; or
(C) "This budget will raise the same amount of
revenue from property taxes as last year's budget. The property
tax revenue to be raised from new property added to the tax roll
this year is (insert amount computed by multiplying the proposed
tax rate by the value of new property added to the roll).";
(2) the record vote of each member of the
commissioners court by name voting on the adoption of the budget;
(3) the county property tax rates for the preceding
fiscal year, and each county property tax rate that has been adopted
or calculated for the current fiscal year, including:
(A) the property tax rate;
(B) the no-new-revenue [effective] tax rate;
(C) the no-new-revenue [effective] maintenance
and operations tax rate;
(D) the rollback tax rate; and
(E) the debt rate; and
(4) the total amount of county debt obligations.
SECTION 29. Sections 140.010(a), (d), (e), and (f), Local
Government Code, are amended to read as follows:
(a) In this section, "no-new-revenue [effective] tax rate"
and "rollback tax rate" mean the no-new-revenue [effective] tax
rate and rollback tax rate of a county or municipality, as
applicable, as calculated under Chapter 26, Tax Code.
(d) A county or municipality that proposes a property tax
rate that does not exceed the lower of the no-new-revenue
[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 by the
governing body of (insert name of county or municipality).
PROPOSED TAX RATE $______ per $100
PRECEDING YEAR'S TAX RATE $______ per $100
NO-NEW-REVENUE [EFFECTIVE] TAX RATE $______ per $100
"The no-new-revenue [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.
"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)"
(e) A county or municipality that proposes a property tax
rate that exceeds the lower of the no-new-revenue [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 $100 valuation has been proposed for
adoption by the governing body of (insert name of county or
municipality). This rate exceeds the lower of the no-new-revenue
[effective] or rollback tax rate, and state law requires that two
public hearings be held by the governing body before adopting the
proposed tax rate. The governing body of (insert name of county or
municipality) proposes to use revenue attributable to the tax rate
increase for the purpose of (description of purpose of increase).
PROPOSED TAX RATE$______ per $100
PRECEDING YEAR'S TAX RATE$______ per $100
NO-NEW-REVENUE [EFFECTIVE] TAX RATE$______ per $100
ROLLBACK TAX RATE$______ per $100
"The no-new-revenue [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)."
(f) A county or municipality shall[:
[(1)] provide the notice required by Subsection (d) or
(e), as applicable, 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 by:
(1) [(A)] publishing the notice in a newspaper having
general circulation in:
(A) [(i)] the county, in the case of notice
published by a county; or
(B) [(ii)] the county in which the municipality
is located or primarily located, in the case of notice published by
a municipality; [or]
(2) [(B)] mailing the notice to each property owner
in:
(A) [(i)] the county, in the case of notice
provided by a county; or
(B) [(ii)] the municipality, in the case of
notice provided by a municipality; or [and]
(3) posting [(2) post] the notice prominently on the
home page of 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.
SECTION 30. Sections 403.302(m-1) and (n), Government Code,
are repealed.
SECTION 31. The comptroller shall comply with Sections
5.07(f), (g), (h), and (i), Tax Code, as added by this Act, as soon
as practicable after January 1, 2020, but not later than April 30,
2020.
SECTION 32. A person is entitled to an injunction under
Section 26.04(g), Tax Code, as amended by this Act, for failure to
comply with the requirements of Section 26.17(c) or 26.18, Tax
Code, as added by this Act, beginning with the 2021 tax year.
SECTION 33. Each appraisal district and taxing unit shall
comply with Sections 26.17(c) and 26.18, Tax Code, as added by this
Act, beginning with the 2021 tax year.
SECTION 34. (a) Except as otherwise provided by this Act,
this Act takes effect January 1, 2020.
(b) The following provisions take effect January 1, 2021:
(1) Sections 25.19(b) and (i), Tax Code, as amended by
this Act; and
(2) Section 26.18, Tax Code, as added by this Act.