86R13519 CBH-F
 
  By: Hancock, Bettencourt S.B. No. 1430
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to clarifying certain terminology, including terminology
  applicable to tax rate calculations, in relation to the ad valorem
  tax system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 42.2522(e), Education Code, is amended
  to read as follows:
         (e)  The commissioner shall notify school districts as soon
  as practicable as to the availability of funds under this section.
  For purposes of computing a voter approval [rollback] tax rate
  under Section 26.08, Tax Code, a district shall adjust the
  district's tax rate limit to reflect assistance received under this
  section.
         SECTION 2.  Sections 44.004(c) and (i), Education Code, are
  amended to read as follows:
         (c)  The notice of public meeting to discuss and adopt the
  budget and the proposed tax rate 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 18-point or larger type.  Subject
  to Subsection (d), the notice must:
               (1)  contain a statement in the following form:
  "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
         "The (name of school district) will hold a public meeting at
  (time, date, year) in (name of room, building, physical location,
  city, state).  The purpose of this meeting is to discuss the school
  district's budget that will determine the tax rate that will be
  adopted.  Public participation in the discussion is invited."  The
  statement of the purpose of the meeting must be in bold type.  In
  reduced type, the notice must state:  "The tax rate that is
  ultimately adopted at this meeting or at a separate meeting at a
  later date may not exceed the proposed rate shown below unless the
  district publishes a revised notice containing the same information
  and comparisons set out below and holds another public meeting to
  discuss the revised notice.";
               (2)  contain a section entitled "Comparison of Proposed
  Budget with Last Year's Budget," which must show the difference,
  expressed as a percent increase or decrease, as applicable, in the
  amounts budgeted for the preceding fiscal year and the amount
  budgeted for the fiscal year that begins in the current tax year for
  each of the following:
                     (A)  maintenance and operations;
                     (B)  debt service; and
                     (C)  total expenditures;
               (3)  contain a section entitled "Total Appraised Value
  and Total Taxable Value," which must show the total appraised value
  and the total taxable value of all property and the total appraised
  value and the total taxable value of new property taxable by the
  district in the preceding tax year and the current tax year as
  calculated under Section 26.04, Tax Code;
               (4)  contain a statement of the total amount of the
  outstanding and unpaid bonded indebtedness of the school district;
               (5)  contain a section entitled "Comparison of Proposed
  Rates with Last Year's Rates," which must:
                     (A)  show in rows the tax rates described by
  Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
  property, for columns entitled "Maintenance & Operations,"
  "Interest & Sinking Fund," and "Total," which is the sum of
  "Maintenance & Operations" and "Interest & Sinking Fund":
                           (i)  the school district's "Last Year's
  Rate";
                           (ii)  the "Rate to Maintain Same Level of
  Maintenance & Operations Revenue & Pay Debt Service," which:
                                 (a)  in the case of "Maintenance &
  Operations," is the tax rate that, when applied to the current
  taxable value for the district, as certified by the chief appraiser
  under Section 26.01, Tax Code, and as adjusted to reflect changes
  made by the chief appraiser as of the time the notice is prepared,
  would impose taxes in an amount that, when added to state funds to
  be distributed to the district under Chapter 42, would provide the
  same amount of maintenance and operations taxes and state funds
  distributed under Chapter 42 per student in average daily
  attendance for the applicable school year that was available to the
  district in the preceding school year; and
                                 (b)  in the case of "Interest & Sinking
  Fund," is the tax rate that, when applied to the current taxable
  value for the district, as certified by the chief appraiser under
  Section 26.01, Tax Code, and as adjusted to reflect changes made by
  the chief appraiser as of the time the notice is prepared, and when
  multiplied by the district's anticipated collection rate, would
  impose taxes in an amount that, when added to state funds to be
  distributed to the district under Chapter 46 and any excess taxes
  collected to service the district's debt during the preceding tax
  year but not used for that purpose during that year, would provide
  the amount required to service the district's debt; and
                           (iii)  the "Proposed Rate";
                     (B)  contain fourth and fifth columns aligned with
  the columns required by Paragraph (A) that show, for each row
  required by Paragraph (A):
                           (i)  the "Local Revenue per Student," which
  is computed by multiplying the district's total taxable value of
  property, as certified by the chief appraiser for the applicable
  school year under Section 26.01, Tax Code, and as adjusted to
  reflect changes made by the chief appraiser as of the time the
  notice is prepared, by the total tax rate, and dividing the product
  by the number of students in average daily attendance in the
  district for the applicable school year; and
                           (ii)  the "State Revenue per Student," which
  is computed by determining the amount of state aid received or to be
  received by the district under Chapters 42, 43, and 46 and dividing
  that amount by the number of students in average daily attendance in
  the district for the applicable school year; and
                     (C)  contain an asterisk after each calculation
  for "Interest & Sinking Fund" and a footnote to the section that, in
  reduced type, states "The Interest & Sinking Fund tax revenue is
  used to pay for bonded indebtedness on construction, equipment, or
  both.  The bonds, and the tax rate necessary to pay those bonds,
  were approved by the voters of this district.";
               (6)  contain a section entitled "Comparison of Proposed
  Levy with Last Year's Levy on Average Residence," which must:
                     (A)  show in rows the information described by
  Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
  entitled "Last Year" and "This Year":
                           (i)  "Average Market Value of Residences,"
  determined using the same group of residences for each year;
                           (ii)  "Average Taxable Value of Residences,"
  determined after taking into account the limitation on the
  appraised value of residences under Section 23.23, Tax Code, and
  after subtracting all homestead exemptions applicable in each year,
  other than exemptions available only to disabled persons or persons
  65 years of age or older or their surviving spouses, and using the
  same group of residences for each year;
                           (iii)  "Last Year's Rate Versus Proposed
  Rate per $100 Value"; and
                           (iv)  "Taxes Due on Average Residence,"
  determined using the same group of residences for each year; and
                     (B)  contain the following information: "Increase
  (Decrease) in Taxes" expressed in dollars and cents, which is
  computed by subtracting the "Taxes Due on Average Residence" for
  the preceding tax year from the "Taxes Due on Average Residence" for
  the current tax year;
               (7)  contain the following statement in bold
  print:  "Under state law, the dollar amount of school taxes imposed
  on the residence of a person 65 years of age or older or of the
  surviving spouse of such a person, if the surviving spouse was 55
  years of age or older when the person died, may not be increased
  above the amount paid in the first year after the person turned 65,
  regardless of changes in tax rate or property value.";
               (8)  contain the following statement in bold
  print:  "Notice of Voter Approval Tax [Rollback] Rate:  The
  highest tax rate the district can adopt before requiring voter
  approval at an election is (the school district voter approval tax
  [rollback] rate determined under Section 26.08, Tax Code).  This
  election will be automatically held if the district adopts a rate in
  excess of the voter approval tax [rollback] rate of (the school
  district voter approval tax [rollback] rate)."; and
               (9)  contain a section entitled "Fund Balances," which
  must include 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 debt
  obligation, less estimated funds necessary for the operation of the
  district before the receipt of the first payment under Chapter 42 in
  the succeeding school year.
         (i)  A school district that uses a certified estimate, as
  authorized by Subsection (h), may adopt a budget at the public
  meeting designated in the notice prepared using the estimate, but
  the district may not adopt a tax rate before the district receives
  the certified appraisal roll for the district required by Section
  26.01(a), Tax Code. After receipt of the certified appraisal roll,
  the district must publish a revised notice and hold another public
  meeting before the district may adopt a tax rate that exceeds:
               (1)  the rate proposed in the notice prepared using the
  estimate; or
               (2)  the district's voter approval tax [rollback] rate
  determined under Section 26.08, Tax Code, using the certified
  appraisal roll.
         SECTION 3.  Section 45.261(e), Education Code, is amended to
  read as follows:
         (e)  Any part of a school district's tax rate attributable to
  producing revenue for purposes of Subsection (c)(1) is considered
  part of the district's:
               (1)  current debt rate for purposes of computing a
  voter approval [rollback] tax rate under Section 26.08, Tax Code;
  and
               (2)  interest and sinking fund tax rate.
         SECTION 4.  Section 281.107(j), Health and Safety Code, is
  amended to read as follows:
         (j)  The portion of the rate of ad valorem tax that is to be
  levied and assessed each year by or for the district that is
  allocated by the district to the payment of the principal of and the
  interest on bonds and other obligations or the maintenance of
  reserves therefor in accordance with this section shall be applied
  as a payment on current debt in calculating the current debt rate
  under the applicable voter approval tax rate [rollback] provisions
  of Chapter 26, Tax Code.
         SECTION 5.  The heading to Section 281.124, Health and
  Safety Code, is amended to read as follows:
         Sec. 281.124.  ELECTION TO APPROVE TAX RATE IN EXCESS OF
  VOTER APPROVAL [ROLLBACK] TAX RATE.
         SECTION 6.  Sections 281.124(b), (c), (d), and (e), Health
  and Safety Code, are amended to read as follows:
         (b)  The board may hold an election at which the registered
  voters of the district may approve a tax rate for the current tax
  year that exceeds the district's voter approval [rollback] tax rate
  for the year computed under Chapter 26, Tax Code, by a specific rate
  stated in dollars and cents per $100 of taxable value.
         (c)  An election under this section must be held at least 180
  days before the date on which the district's tax rate is adopted by
  the board.  At the election, the ballot shall be prepared to permit
  voting for or against the proposition:  "Approving the ad valorem
  tax rate of $ (insert total proposed tax rate) per $100 valuation in
  (insert district name) for the (insert current tax year) tax year, a
  rate that exceeds the district's voter approval [rollback] tax
  rate.  The proposed ad valorem tax rate exceeds the ad valorem tax
  rate most recently adopted by the district by $ (insert difference
  between proposed and preceding year's tax rates) per $100
  valuation."
         (d)  If a majority of the votes cast in the election favor the
  proposition, the tax rate for the specified tax year is the rate
  approved by the voters, and that rate is not subject to a voter
  approval tax rate [rollback] election under Section 26.07, Tax
  Code.  The board shall adopt the tax rate as provided by Chapter 26,
  Tax Code.
         (e)  If the proposition is not approved as provided by
  Subsection (d) [(c)], the board may not adopt a tax rate for the
  district for the specified tax year that exceeds the rate that was
  not approved, and Section 26.07, Tax Code, applies to the adopted
  rate if that rate exceeds the voter approval [rollback] tax rate.
         SECTION 7.  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 effective tax rate;
                     (C)  the effective maintenance and operations tax
  rate;
                     (D)  the voter approval [rollback] tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of municipal debt obligations.
         SECTION 8.  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 effective tax rate;
                     (C)  the effective maintenance and operations tax
  rate;
                     (D)  the voter approval [rollback] tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of county debt obligations.
         SECTION 9.  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 effective tax rate;
                     (C)  the effective maintenance and operations tax
  rate;
                     (D)  the voter approval [rollback] tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of county debt obligations.
         SECTION 10.  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 effective tax rate;
                     (C)  the effective maintenance and operations tax
  rate;
                     (D)  the voter approval [rollback] tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of county debt obligations.
         SECTION 11.  Sections 140.010(a), (d), and (e), Local
  Government Code, are amended to read as follows:
         (a)  In this section, "effective tax rate" and "voter
  approval [rollback] tax rate" mean the effective tax rate and voter
  approval [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
  voter approval [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
  "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.
  "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 voter
  approval [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 $100 valuation has been proposed for
  adoption by the governing body of (insert name of county or
  municipality).  This rate exceeds the lower of the effective or
  voter approval [rollback] tax rate, and state law requires that two
  public hearings be held by the governing body before adopting the
  proposed tax rate.  The governing body of (insert name of county or
  municipality) proposes to use revenue attributable to the tax rate
  increase for the purpose of (description of purpose of increase).
         PROPOSED TAX RATE$______ per $100        
         PRECEDING YEAR'S TAX RATE$______ per $100        
         EFFECTIVE TAX RATE$______ per $100        
         VOTER APPROVAL [ROLLBACK] TAX RATE$______ 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 voter approval [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 voter approval tax [rollback] 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 12.  Sections 1063.255(a) and (d), Special District
  Local Laws Code, are amended to read as follows:
         (a)  Notwithstanding Section 26.07(b)(3), Tax Code, a
  petition to require an election under Section 26.07, Tax Code, on
  reducing the district's tax rate to the voter approval [rollback]
  tax rate shall be submitted to the Montgomery County elections
  administrator instead of to the board.
         (d)  Notwithstanding Section 26.07(d), Tax Code, if the
  elections administrator certifies to the board that the petition is
  valid or fails to act within the time allowed, the board shall order
  that an election under Section 26.07, Tax Code, to determine
  whether to reduce the district's tax rate to the voter approval tax
  [rollback] rate be held in the district in the manner prescribed by
  Section 26.07(d) of that code.
         SECTION 13.  Section 1122.2522, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1122.2522.   VOTER APPROVAL [ROLLBACK] TAX RATE
  PROVISIONS APPLICABLE. (a)  If in any year the board adopts a tax
  rate that exceeds the voter approval [rollback] tax rate calculated
  as provided by Chapter 26, Tax Code, the qualified voters of the
  district by petition may require that an election be held to
  determine whether or not to reduce the tax rate adopted by the board
  for that year to the voter approval [rollback] tax rate.
         (b)  To the extent a conflict exists between this section and
  a provision of the Tax Code, the provision of the Tax Code prevails.
         SECTION 14.  Section 26.012(10), Tax Code, is amended to
  read as follows:
               (10)  "Excess collections" means the amount, if any, by
  which debt taxes collected in the preceding year exceeded the
  amount anticipated in the preceding year's calculation of the
  voter approval tax [rollback] rate, as certified by the collector
  under Section 26.04(b) [of this code].
         SECTION 15.  The heading to Section 26.04, Tax Code, is
  amended to read as follows:
         Sec. 26.04.  SUBMISSION OF ROLL TO GOVERNING BODY;
  EFFECTIVE AND VOTER APPROVAL [ROLLBACK] TAX RATES.
         SECTION 16.  Sections 26.04(c), (d), (e), (f), (i), and (j),
  Tax Code, are amended to read as follows:
         (c)  An officer or employee designated by the governing body
  shall calculate the effective tax rate and the voter approval
  [rollback] tax rate for the taxing unit, where:
               (1)  "Effective tax rate" means a rate expressed in
  dollars per $100 of taxable value calculated according to the
  following formula:
         EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
  LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
         ; and
               (2)  "Voter approval [Rollback] tax rate" means a rate
  expressed in dollars per $100 of taxable value calculated according
  to the following formula:
         VOTER APPROVAL [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 and the voter approval [rollback] tax rate for a county is
  the sum of the voter approval [rollback] tax rates calculated for
  each type of tax the county levies.
         (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 in the form prescribed by the comptroller:
               (1)  the effective tax rate, the voter approval
  [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 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 voter approval tax [rollback] 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 voter approval tax [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 taxing unit in
  the preceding tax year under Subdivision (6)(B).
         (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 and
  voter approval [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 voter approval [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 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 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 voter approval [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 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 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 17.  Sections 26.041(a), (b), (c), and (e), 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 and voter
  approval [rollback] tax rate for the taxing unit are calculated
  according to the following formulas:
         EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
  LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
  SALES TAX GAIN RATE
  and
         VOTER APPROVAL TAX [ROLLBACK] 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.
         (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 voter approval [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:
         VOTER APPROVAL TAX [ROLLBACK] 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 effective tax rate and voter approval [rollback] tax
  rate for the taxing unit are calculated according to the following
  formulas:
         EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
  LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
  SALES TAX LOSS RATE
  and
         VOTE APPROVAL [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 and voter approval [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
  voter approval [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.
         SECTION 18.  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 voter approval
  [rollback] and 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 effective or voter approval
  [rollback] tax rate refers to that rate as adjusted under this
  section.
         SECTION 19.  The heading to Section 26.045, Tax Code, is
  amended to read as follows:
         Sec. 26.045.  VOTER APPROVAL TAX RATE [ROLLBACK] RELIEF FOR
  POLLUTION CONTROL REQUIREMENTS.
         SECTION 20.  Sections 26.045(a), (c), and (i), Tax Code, are
  amended to read as follows:
         (a)  The voter approval [rollback] tax rate for a political
  subdivision of this state is increased by the rate that, if applied
  to the total current value, would impose an amount of taxes equal to
  the amount the political subdivision will spend out of its
  maintenance and operation funds under Section 26.012(16) to pay for
  a facility, device, or method for the control of air, water, or land
  pollution that is necessary to meet the requirements of a permit
  issued by the Texas Commission on Environmental Quality.
         (c)  To receive an adjustment to the voter approval
  [rollback] tax rate under this section, a political subdivision
  shall present information to the executive director of the Texas
  Commission on Environmental Quality in a permit application or in a
  request for any exemption from a permit that would otherwise be
  required detailing:
               (1)  the anticipated environmental benefits from the
  installation of the facility, device, or method for the control of
  air, water, or land pollution;
               (2)  the estimated cost of the pollution control
  facility, device, or method; and
               (3)  the purpose of the installation of the facility,
  device, or method, and the proportion of the installation that is
  pollution control property.
         (i)  A political subdivision of the state seeking an
  adjustment in its voter approval [rollback] tax rate under this
  section shall provide to its tax assessor a copy of the letter
  issued by the executive director of the Texas Commission on
  Environmental Quality under Subsection (d).  The tax assessor
  shall accept the copy of the letter from the executive director as
  conclusive evidence that the facility, device, or method is used
  wholly or partly as pollution control property and shall adjust the
  voter approval [rollback] tax rate for the political subdivision as
  provided for by Subsection (a).
         SECTION 21.  Sections 26.05(d) and (g), Tax Code, are
  amended to read as follows:
         (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
  voter approval [rollback] tax rate or the 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 voter approval [rollback] tax rate or
  the effective tax rate and may not adopt a higher rate unless it
  first complies with Section 26.06.
         (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 and the voter
  approval [rollback] tax rate of the district shall be calculated
  based on the certified estimate of taxable value.
         SECTION 22.  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 voter approval [rollback] tax rate or
  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 effective tax rate for this year of $____
  (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."
         (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 voter approval
  [rollback] tax rate or 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 voter
  approval [rollback] tax rate or the 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 voter approval [rollback]
  tax rate or the effective tax rate.
         SECTION 23.  Sections 26.07(a), (d), and (e), Tax Code, are
  amended to read as follows:
         (a)  If the governing body of a taxing unit other than a
  school district adopts a tax rate that exceeds the voter approval
  [rollback] tax rate calculated as provided by this chapter, the
  qualified voters of the taxing unit by petition may require that an
  election be held to determine whether or not to reduce the tax rate
  adopted for the current year to the voter approval [rollback] tax
  rate calculated as provided by this chapter.
         (d)  If the governing body finds that the petition is valid
  (or fails to act within the time allowed), it shall order that an
  election be held in the taxing unit on a date not less than 30 or
  more than 90 days after the last day on which it could have acted to
  approve or disapprove the petition. A state law requiring local
  elections to be held on a specified date does not apply to the
  election unless a specified date falls within the time permitted by
  this section. At the election, the ballots shall be prepared to
  permit voting for or against the proposition: "Reducing the tax
  rate in (name of taxing unit) for the current year from (the rate
  adopted) to (the voter approval [rollback] tax rate calculated as
  provided by this chapter)."
         (e)  If a majority of the qualified voters voting on the
  question in the election favor the proposition, the tax rate for the
  taxing unit for the current year is the voter approval [rollback]
  tax rate calculated as provided by this chapter; otherwise, the tax
  rate for the current year is the one adopted by the governing body.
         SECTION 24.  Sections 26.08(a), (b), (d), (g), (n), (o), and
  (p), Tax Code, are amended to read as follows:
         (a)  If the governing body of a school district adopts a tax
  rate that exceeds the district's voter approval [rollback] tax
  rate, the registered voters of the district at an election held for
  that purpose must determine whether to approve the adopted tax
  rate. When increased expenditure of money by a school district is
  necessary to respond to a disaster, including a tornado, hurricane,
  flood, or other calamity, but not including a drought, that has
  impacted a school district and the governor has requested federal
  disaster assistance for the area in which the school district is
  located, an election is not required under this section to approve
  the tax rate adopted by the governing body for the year following
  the year in which the disaster occurs.
         (b)  The governing body shall order that the election be held
  in the school district on a date not less than 30 or more than 90
  days after the day on which it adopted the tax rate.  Section
  41.001, Election Code, does not apply to the election unless a date
  specified by that section falls within the time permitted by this
  section.  At the election, the ballots shall be prepared to permit
  voting for or against the proposition:  "Approving the ad valorem
  tax rate of $_____ per $100 valuation in (name of school district)
  for the current year, a rate that is $_____ higher per $100
  valuation than the school district voter approval [rollback] tax
  rate, for the purpose of (description of purpose of
  increase)."  The ballot proposition must include the adopted tax
  rate and the difference between that rate and the voter approval
  [rollback] tax rate in the appropriate places.
         (d)  If the proposition is not approved as provided by
  Subsection (c), the governing body may not adopt a tax rate for the
  school district for the current year that exceeds the school
  district's voter approval [rollback] tax rate.
         (g)  In a school district that received distributions from an
  equalization tax imposed under former Chapter 18, Education Code,
  the effective rate of that tax as of the date of the county unit
  system's abolition is added to the district's voter approval
  [rollback] tax rate.
         (n)  For purposes of this section, the voter approval
  [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 voter approval
  [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 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.
         (o)  For purposes of this section, the voter approval
  [rollback] tax rate of a school district whose maintenance and
  operations tax rate for the 2005 tax year was greater than $1.50 per
  $100 of taxable value is computed in the manner provided by
  Subsection (n) except that the maintenance and operations tax rate
  per $100 of taxable value adopted by the district for the 2005 tax
  year is substituted for $1.50 in a computation under that
  subsection.
         (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 effective
  maintenance and operations tax rate for that preceding tax year,
  the voter approval [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 effective maintenance and operations
  tax rate for that preceding tax year.
         SECTION 25.  Sections 26.16(a) and (d), Tax Code, are
  amended 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 effective tax rate;
               (5)  the effective maintenance and operations rate; and
               (6)  the voter approval [rollback] tax rate.
         (d)  The county assessor-collector shall post immediately
  below the table prescribed by Subsection (c) the following
  statement:
         "The county is providing this table of property tax rate
  information as a service to the residents of the county.  Each
  individual taxing unit is responsible for calculating the property
  tax rates listed in this table pertaining to that taxing unit and
  providing that information to the county.
         "The adopted tax rate is the tax rate adopted by the governing
  body of a taxing unit.
         "The maintenance and operations rate is the component of the
  adopted tax rate of a taxing unit that will impose the amount of
  taxes needed to fund maintenance and operation expenditures of the
  taxing unit for the following year.
         "The debt rate is the component of the adopted tax rate of a
  taxing unit that will impose the amount of taxes needed to fund the
  taxing unit's debt service for the following year.
         "The effective tax rate is the tax rate that would generate
  the same amount of revenue in the current tax year as was generated
  by a taxing unit's adopted tax rate in the preceding tax year from
  property that is taxable in both the current tax year and the
  preceding tax year.
         "The effective maintenance and operations rate is the tax
  rate that would generate the same amount of revenue for maintenance
  and operations in the current tax year as was generated by a taxing
  unit's maintenance and operations rate in the preceding tax year
  from property that is taxable in both the current tax year and the
  preceding tax year.
         "The voter approval [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 voter approval
  tax rate [rollback] election be held if the taxing unit adopts a tax
  rate in excess of the taxing unit's voter approval [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 voter approval [rollback] tax rate."
         SECTION 26.  Sections 49.236(a) and (d), Water Code, as
  added by Chapter 335 (S.B. 392), Acts of the 78th Legislature,
  Regular Session, 2003, are amended to read as follows:
         (a)  Before the board adopts an ad valorem tax rate for the
  district for debt service, operation and maintenance purposes, or
  contract purposes, the board shall give notice of each meeting of
  the board at which the adoption of a tax rate will be considered.
  The notice must:
               (1)  contain a statement in substantially the following
  form:
  "NOTICE OF PUBLIC HEARING ON TAX RATE
         "The (name of the district) will hold a public hearing on a
  proposed tax rate for the tax year (year of tax levy) on (date and
  time) at (meeting place). Your individual taxes may increase or
  decrease, depending on the change in the taxable value of your
  property in relation to the change in taxable value of all other
  property and the tax rate that is adopted.
         "(Names of all board members and, if a vote was taken, an
  indication of how each voted on the proposed tax rate and an
  indication of any absences.)";
               (2)  contain the following information:
                     (A)  the district's total adopted tax rate for the
  preceding year and the proposed tax rate, expressed as an amount per
  $100;
                     (B)  the difference, expressed as an amount per
  $100 and as a percent increase or decrease, as applicable, in the
  proposed tax rate compared to the adopted tax rate for the preceding
  year;
                     (C)  the average appraised value of a residence
  homestead in the district in the preceding year and in the current
  year; the district's total homestead exemption, other than an
  exemption available only to disabled persons or persons 65 years of
  age or older, applicable to that appraised value in each of those
  years; and the average taxable value of a residence homestead in
  the district in each of those years, disregarding any homestead
  exemption available only to disabled persons or persons 65 years of
  age or older;
                     (D)  the amount of tax that would have been
  imposed by the district in the preceding year on a residence
  homestead appraised at the average appraised value of a residence
  homestead in that year, disregarding any homestead exemption
  available only to disabled persons or persons 65 years of age or
  older;
                     (E)  the amount of tax that would be imposed by the
  district in the current year on a residence homestead appraised at
  the average appraised value of a residence homestead in that year,
  disregarding any homestead exemption available only to disabled
  persons or persons 65 years of age or older, if the proposed tax
  rate is adopted; and
                     (F)  the difference between the amounts of tax
  calculated under Paragraphs (D) and (E), expressed in dollars and
  cents and described as the annual percentage increase or decrease,
  as applicable, in the tax to be imposed by the district on the
  average residence homestead in the district in the current year if
  the proposed tax rate is adopted; and
               (3)  contain a statement in substantially the following
  form:
  "NOTICE OF TAXPAYERS' RIGHT TO VOTER APPROVAL TAX RATE [ROLLBACK]
  ELECTION
         "If taxes on the average residence homestead increase by more
  than eight percent, the qualified voters of the district by
  petition may require that an election be held to determine whether
  to reduce the operation and maintenance tax rate to the voter
  approval [rollback] tax rate under Section 49.236(d), Water Code."
         (d)  If the governing body of a district adopts a combined
  debt service, operation and maintenance, and contract tax rate that
  would impose more than 1.08 times the amount of tax imposed by the
  district in the preceding year on a residence homestead appraised
  at the average appraised value of a residence homestead in the
  district in that year, disregarding any homestead exemption
  available only to disabled persons or persons 65 years of age or
  older, the qualified voters of the district by petition may require
  that an election be held to determine whether or not to reduce the
  tax rate adopted for the current year to the voter approval
  [rollback] tax rate in accordance with the procedures provided by
  Sections 26.07(b)-(g) and 26.081, Tax Code. For purposes of
  Sections 26.07(b)-(g) and this subsection, the voter approval
  [rollback] tax rate is the current year's debt service and contract
  tax rates plus the operation and maintenance tax rate that would
  impose 1.08 times the amount of the operation and maintenance tax
  imposed by the district in the preceding year on a residence
  homestead appraised at the average appraised value of a residence
  homestead in the district in that year, disregarding any homestead
  exemption available only to disabled persons or persons 65 years of
  age or older.
         SECTION 27.  Section 49.2361, Water Code, is amended to read
  as follows:
         Sec. 49.2361.  ADDITIONAL NOTICE FOR CERTAIN TAX INCREASES.
  If a district proposes to adopt a combined tax rate that would
  authorize the qualified voters of the district by petition to
  require a voter approval tax rate [rollback] election to be held in
  the district, the notice required by Section 49.236 must include a
  description of the purpose of the proposed tax increase.
         SECTION 28.  A reference in law to a "rollback" tax rate
  means a "voter approval" tax rate.
         SECTION 29.  This Act takes effect January 1, 2020.