Bill Text: TX HB874 | 2011-2012 | 82nd Legislature | Comm Sub

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Bill Title: Relating to the provision of information by tax officials related to ad valorem tax rates.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2011-05-10 - Committee report sent to Calendars [HB874 Detail]

Download: Texas-2011-HB874-Comm_Sub.html

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82R2325 SMH-F
By: Howard of Fort Bend H.B. No. 874

A BILL TO BE ENTITLED
AN ACT
relating to the provision of information by tax officials related
to ad valorem tax rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 and the kind and amount of each partial exemption, if
any, approved for the current year;
(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 burden is 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 2. Section 26.012, Tax Code, is amended by adding
Subdivisions (13-a) and (13-b) to read as follows:
(13-a) "Last year's maintenance and operations levy"
means the difference between last year's levy and the sum of last
year's debt levy and last year's junior college levy.
(13-b) "Last year's maintenance and operations rate"
means the rate expressed in dollars per $100 of taxable value
adopted in the preceding year for maintenance and operations.
SECTION 3. The heading to Section 26.04, Tax Code, is
amended to read as follows:
Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
EFFECTIVE, SAME SERVICES, AND ROLLBACK TAX RATES.
SECTION 4. Sections 26.04(b), (c), (d), (e), (e-1), (f),
(i), and (j), Tax Code, are amended to read as follows:
(b) The assessor shall submit the appraisal roll for the
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 unit not later than the 21st day after the
date the appraisal roll is certified to the assessor. On or before
the 21st day after the date the appraisal roll is certified by the
assessor [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 collection rate 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) Not later than the 30th day after the date the appraisal
roll is certified to the assessor, an [An] officer or employee
designated by the governing body shall calculate the effective tax
rate, the same services tax rate, and the rollback tax rate for the
unit, where:
(1) "Effective tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
; [and]
(2) "Same services tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
LEVY + (NEW PROPERTY VALUE x LAST YEAR'S
MAINTENANCE AND OPERATIONS RATE))/CURRENT
TOTAL VALUE] + CURRENT DEBT RATE
; and
(3) "Rollback tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE
x 1.08) + CURRENT DEBT RATE
(d) The effective tax rate for a county is the sum of the
effective tax rates calculated for each type of tax the county
levies. The same services tax rate for a county is the sum of the
same services tax rates calculated for each type of tax the county
levies. The [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.
(e) Not later than the fifth day after the date the
designated officer or employee completes the calculations required
by Subsections (c) and (d) [By August 7 or as soon thereafter as
practicable], the designated officer or employee shall submit the
rates to the governing body and provide to the chief appraiser in
the form prescribed by the comptroller the effective tax rate, the
same services tax rate, the rollback tax rate, and an explanation of
how they were calculated. At least 14 days before the date of the
first meeting of the governing body to consider the budget for the
current tax year, the designated officer or employee [. He] shall
deliver by mail to each property owner in the unit or publish in a
newspaper in the form prescribed by the comptroller:
(1) last year's [the effective] tax rate, the same
services [rollback] tax rate, the tax rate required to fund the
budget for the current tax year, and an explanation of their meaning
and how they were calculated;
(2) a statement, including an example calculation,
that the tax liability of any parcel of taxable property can be
derived by multiplying the property's taxable value as computed on
the basis of the notice of appraised value delivered by the
appraisal district by each tax rate; and
(3) a statement that adoption by the governing body of
a tax rate for the current year that is higher than the same
services tax rate will constitute an overall tax increase [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 unit's debt obligations
showing:
[(A) the amount of principal and interest that
will be paid to service the 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 unit by another political
subdivision and, if the unit is created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, payments on
debts that the 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 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 effective tax rate would result in an increase or decrease,
as applicable, in the amount of taxes imposed by the 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 unit discontinuing the
department, function, or activity;
[(B) the amount of property tax revenue spent by
the 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 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 rate as required by Subsection (j), a
schedule that includes the following elements:
[(A) the amount of property tax revenue spent by
the unit to operate the department, function, or activity for which
the taxing unit raised the rollback 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 unit in the
preceding tax year under Subdivision (6)(B)].
(e-1) The notice requirements imposed by Subsection (e)
[Subsections (e)(1)-(6)] do not apply to a school district.
(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 effective, same
services, and rollback tax rates under this section.
(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 effective maintenance and operations rate and
the same services tax rate of the 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 unit operated the discontinued
department, function, or activity. If the 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 unit shall reduce last year's levy used for calculating
the effective maintenance and operations rate and the same services
tax rate of the unit by the amount of the revenue spent in the last
full fiscal year in which the 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 effective maintenance and operations rate and the
same services tax rate of the 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 unit
operated the discontinued department, function, or activity. If
the 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 unit may
increase last year's levy used to calculate the effective
maintenance and operations rate and the same services tax rate by an
amount not to exceed the amount of property tax revenue spent by the
discontinuing unit to operate the discontinued department,
function, or activity in the last full fiscal year in which the
discontinuing unit operated the department, function, or activity.
SECTION 5. Sections 26.041(a), (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 effective tax rate, same
services tax rate, and rollback tax rate for the unit are calculated
according to the following formulas:
EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY)/
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
SALES TAX GAIN RATE
SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
LEVY + (NEW PROPERTY VALUE X LAST YEAR'S
MAINTENANCE AND OPERATIONS RATE)) /
CURRENT TOTAL VALUE] + CURRENT DEBT RATE -
SALES TAX GAIN RATE
and
ROLLBACK TAX RATE = (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.
(c) In a year in which a taxing unit that has been imposing
an additional sales and use tax ceases to impose an additional sales
and use tax the effective tax rate, same services tax rate, and
rollback tax rate for the unit are calculated according to the
following formulas:
EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
SALES TAX LOSS RATE
SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
LEVY + (NEW PROPERTY VALUE X LAST YEAR'S
MAINTENANCE AND OPERATIONS RATE))/CURRENT
TOTAL VALUE] + CURRENT DEBT RATE + 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 effective, same services, 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 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:
(1) [,] the effective tax rate for the unit is the
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; and
(2) the same services tax rate for the unit is the same
services 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 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:
(1)[,] the effective tax rate for the unit is the
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; and
(2) the same services tax rate for the unit is the same
services 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 6. The heading to Section 26.043, Tax Code, is
amended to read as follows:
Sec. 26.043. ROLLBACK, EFFECTIVE, AND SAME SERVICES TAX
RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
SECTION 7. 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 representative shall subtract from
the city's rollback, [and] effective, and same services 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 effective, same services, or rollback
tax rate refers to that rate as adjusted under this section.
SECTION 8. The heading to Section 26.044, Tax Code, is
amended to read as follows:
Sec. 26.044. EFFECTIVE AND SAME SERVICES TAX RATES [RATE]
TO PAY FOR STATE CRIMINAL JUSTICE MANDATE.
SECTION 9. Sections 26.044(a) and (b), 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 effective maintenance and operation rate
and the same services tax rate for the county are [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 effective
maintenance and operation rate and the same services tax rate for
the county are [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)
SECTION 10. Sections 26.0441(a) and (b), 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 effective maintenance and operations rate and the same services
tax rate for the taxing unit are [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 effective maintenance and
operations rate and the same services tax rate for the taxing unit
are [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)
SECTION 11. Section 26.05, Tax Code, is amended by amending
Subsections (a), (b), (c), (d), and (g) and adding Subsection (d-1)
to read as follows:
(a) The governing body of each taxing unit, before the later
of September 30 or the 90th [60th] day after the date the certified
appraisal roll is received by the taxing unit, shall adopt a tax
rate for the current tax year and shall notify the assessor for the
unit of the rate adopted. The tax rate consists of two components,
each of which must be approved separately. The components are:
(1) the following rate, as applicable:
(A) for a taxing unit other than a school
district, the rate that, if applied to the total taxable value, will
impose an amount equal to the amount computed by:
(i) adding the following amounts:
(a) the amount of principal and
interest that will be paid to service the 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 unit by another
political subdivision and, if the unit is created under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution,
payments on debts that the unit anticipates to incur in the next
calendar year; and
(b) the amount by which taxes imposed
for debt are to be increased because of the unit's anticipated
collection rate; and
(ii) subtracting from the amount computed
under Subparagraph (i) the sum of the following amounts:
(a) any amount collected in excess of
the previous year's anticipated collections certified as provided
by Section 26.04(b); and
(b) [the total amount published under
Section 26.04(e)(3)(C), less] any amount of additional sales and
use tax revenue that will be used to pay debt service; or
(B) [, or,] for a school district, the rate
published under Section 44.004(c)(5)(A)(ii)(b), Education Code;
and
(2) the rate that, if applied to the total taxable
value, will impose the amount of taxes needed to fund maintenance
and operation expenditures of the unit for the next year.
(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. The vote on the ordinance, resolution, or order setting a
tax rate that exceeds the same services [effective] tax rate must be
a record vote. A motion to adopt an ordinance, resolution, or order
setting a tax rate that exceeds the same services [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 same services [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 same services tax
[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 SAME SERVICES TAX
[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 unit:
(A) the following statement: "(Insert name of
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 same services tax
[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 SAME SERVICES TAX
[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 designated officer or employee [governing body of
a taxing unit] does not comply with Section 26.04(e) by the date
required by that subsection and the failure to comply was caused by
circumstances beyond the designated officer's or employee's
control, such as a natural disaster [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 same services [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 same services [effective] tax rate
calculated as provided by this chapter until the governing body has
complied with Subsection (d-1) of this section and 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 same
services [effective] tax rate and may not adopt a higher rate unless
it first complies with Section 26.06.
(d-1) Before giving notice of the public hearings on the
proposed tax rate under Section 26.06, the governing body of a
taxing unit that is required to comply with that section must take a
record vote on a proposal to place consideration of an increase in
taxes on the agenda for the meeting at which the governing body will
adopt the tax rate. The motion for the vote must be made in the
following form: "I move that a proposal to increase property taxes
by the adoption of a tax rate of (specify tax rate) be placed on the
agenda for the meeting to be held on (date at which the governing
body anticipates adopting the tax rate)."
(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 effective tax rate, the same
services tax rate, and the rollback tax rate of the district shall
be calculated based on the certified estimate of taxable value.
SECTION 12. Section 26.052(e), Tax Code, is amended to read
as follows:
(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 unit's same services [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 same services [effective] tax rate)."
SECTION 13. Sections 26.06(b), (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 same services
[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 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 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 same services [effective] tax rate for
this year of $____ (same services [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).
"The taxes on any parcel of taxable property can be derived by
multiplying the property's taxable value as computed on the basis
of the notice of appraised value delivered by the appraisal
district by each of the above tax rates.
"Members of the public are encouraged to attend the hearings
and express their views."
(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
same services [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)."
(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 same services [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 same services [effective] tax rate.
SECTION 14. Sections 26.044(c) and 26.0441(c), Tax Code,
are repealed.
SECTION 15. This Act applies only to a tax year beginning on
or after the effective date of this Act.
SECTION 16. This Act takes effect January 1, 2012.