Bill Text: TX SB1426 | 2017-2018 | 85th Legislature | Engrossed

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Bill Title: Relating to the calculation and dissemination of certain ad valorem tax rates.

Sponsorship: Partisan Bill (Republican 3)

Status: (Engrossed - Dead) 2017-05-08 - Referred to Ways & Means [SB1426 Detail]

Download: Texas-2017-SB1426-Engrossed.html

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By: Hancock, Buckingham S.B. No. 1426
Burton

A BILL TO BE ENTITLED
AN ACT
relating to the calculation and dissemination of certain ad valorem
tax rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.012, Tax Code, is amended by adding
Subdivisions (1-a) and (1-b) to read as follows:
(1-a) "Adjusted effective tax rate" means the
effective tax rate of a taxing unit as otherwise calculated under
this chapter, except that new property value is not deducted from
current total value in calculating the rate.
(1-b) "Adjusted rollback tax rate" means the rollback
tax rate of a taxing unit as otherwise calculated under this
chapter, except that new property value is not deducted from
current total value in calculating the effective maintenance and
operations rate.
SECTION 2. Section 26.04, Tax Code, is amended by adding
Subsection (c-1) and amending Subsection (e) to read as follows:
(c-1) In addition to calculating the tax rates described by
Subsection (c), the designated officer or employee shall calculate
the adjusted effective tax rate and the adjusted rollback tax rate
for the unit.
(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 unit or publish in a
newspaper in the form prescribed by the comptroller:
(1) the effective tax rate, the rollback tax rate, and
an explanation of how they were calculated;
(1-a) the adjusted effective tax rate, the adjusted
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 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).
SECTION 3. Sections 140.010(a), (d), and (e), Local
Government Code, are amended to read as follows:
(a) In this section, "effective tax rate," [and] "rollback
tax rate," "adjusted effective tax rate," and "adjusted rollback
tax rate" mean the effective tax rate, [and] rollback tax rate,
adjusted effective tax rate, and adjusted 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 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 $100
EFFECTIVE TAX RATE$______ per $100
ADJUSTED EFFECTIVE TAX RATE$______ per $100
"The effective tax rate is the total tax rate needed to raise the
same amount of property tax revenue for (insert name of county or
municipality) from the same properties in both the (insert
preceding tax year) tax year and the (insert current tax year) tax
year.
"The adjusted effective tax rate is the tax rate that would have
been calculated as the effective tax rate had property added to the
appraisal roll in the current year not been excluded in calculating
that 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)"
(e) A county or municipality that proposes a property tax
rate that exceeds the lower of the effective tax rate or the
rollback tax rate shall provide the following notice:
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
"A tax rate of $_____ per $100 valuation has been proposed for
adoption by the governing body of (insert name of county or
municipality). This rate exceeds the lower of the effective or
rollback tax rate, and state law requires that two public hearings
be held by the governing body before adopting the proposed tax rate.
The governing body of (insert name of county or municipality)
proposes to use revenue attributable to the tax rate increase for
the purpose of (description of purpose of increase).
PROPOSED TAX RATE$______ per $100
PRECEDING YEAR'S TAX RATE$______ per $100
EFFECTIVE TAX RATE$______ per $100
ROLLBACK TAX RATE$______ per $100
ADJUSTED EFFECTIVE TAX RATE$______ per $100
ADJUSTED ROLLBACK TAX RATE$______ per $100
"The effective tax rate is the total tax rate needed to raise the
same amount of property tax revenue for (insert name of county or
municipality) from the same properties in both the (insert
preceding tax year) tax year and the (insert current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (insert name of
county or municipality) may adopt before voters are entitled to
petition for an election to limit the rate that may be approved to
the rollback rate.
"The adjusted effective tax rate is the tax rate that would have
been calculated as the effective tax rate had property added to the
appraisal roll in the current year not been excluded in calculating
that rate.
"The adjusted rollback tax rate is the tax rate that would have been
calculated as the rollback tax rate had property added to the
appraisal roll in the current year not been excluded in calculating
the effective maintenance and operations rate, which is a component
of 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)."
SECTION 4. (a) The change in law made by this Act applies
to the ad valorem tax rate of a taxing unit beginning with the 2017
tax year, except as provided by Subsection (b) of this section.
(b) If the governing body of a taxing unit adopted an ad
valorem tax rate for the taxing unit for the 2017 tax year before
the effective date of this Act, the change in law made by this Act
applies to the ad valorem tax rate of that taxing unit beginning
with the 2018 tax year, and the law in effect when the tax rate was
adopted applies to the 2017 tax year with respect to that taxing
unit.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.