Bill Text: TX SB1760 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to the transparent and equitable application of ad valorem tax procedures.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2015-06-15 - See remarks for effective date [SB1760 Detail]
Download: Texas-2015-SB1760-Enrolled.html
S.B. No. 1760 |
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relating to the transparent and equitable application of ad valorem | ||
tax procedures. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 1.111, Tax Code, is amended by adding | ||
Subsection (a-1) to read as follows: | ||
(a-1) A lessee designated by a property owner as the owner's | ||
agent under Subsection (a) may, subject to the property owner's | ||
approval, designate a person to act as the lessee's agent for any | ||
purpose under this title for which the lessee is authorized to act | ||
on behalf of the owner in connection with the owner or the owner's | ||
property. An agent designated by a lessee under this subsection has | ||
the same authority and is subject to the same limitations as an | ||
agent designated by a property owner under Subsection (a). | ||
SECTION 2. Section 5.07, Tax Code, is amended by adding | ||
Subsections (d) and (e) to read as follows: | ||
(d) A property tax form that requires a signature may be | ||
signed by means of an electronically captured handwritten | ||
signature. | ||
(e) A property tax form is not invalid or unenforceable | ||
solely because the form is a photocopy, facsimile, or electronic | ||
copy of the original. | ||
SECTION 3. Chapter 5, Tax Code, is amended by adding Section | ||
5.091 to read as follows: | ||
Sec. 5.091. STATEWIDE LIST OF TAX RATES. (a) Each year the | ||
comptroller shall prepare a list that includes the total tax rate | ||
imposed by each taxing unit in this state, other than a school | ||
district, if the tax rate is reported to the comptroller, for the | ||
year preceding the year in which the list is prepared. The | ||
comptroller shall list the tax rates in descending order. | ||
(b) Not later than December 31 of each year, the comptroller | ||
shall publish on the comptroller's Internet website the list | ||
required by Subsection (a). | ||
SECTION 4. Section 11.431(b), Tax Code, is amended to read | ||
as follows: | ||
(b) If a late application is approved after approval of the | ||
appraisal records by the appraisal review board, the chief | ||
appraiser shall notify the collector for each unit in which the | ||
residence is located. The collector shall deduct from the person's | ||
tax bill the amount of tax imposed on the exempted amount if the tax | ||
has not been paid. If the tax has been paid, the collector shall | ||
refund the amount of tax imposed on the exempted amount. A person | ||
is not required to apply for a refund under this subsection to | ||
receive the refund. | ||
SECTION 5. Section 26.05(b), Tax Code, is amended to read as | ||
follows: | ||
(b) A taxing unit may not impose property taxes in any year | ||
until the governing body has adopted a tax rate for that year, and | ||
the annual tax rate must be set by ordinance, resolution, or order, | ||
depending on the method prescribed by law for adoption of a law by | ||
the governing body. The vote on the ordinance, resolution, or order | ||
setting the tax rate must be separate from the vote adopting the | ||
budget. For a taxing unit other than a school district, the [ |
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vote on the ordinance, resolution, or order setting a tax rate that | ||
exceeds the effective tax rate must be a record vote, and at least | ||
60 percent of the members of the governing body must vote in favor | ||
of the ordinance, resolution, or order. For a school district, the | ||
vote on the ordinance, resolution, or order setting a tax rate that | ||
exceeds the sum of the effective maintenance and operations tax | ||
rate of the district as determined under Section 26.08(i) and the | ||
district's current debt rate must be a record vote, and at least 60 | ||
percent of the members of the governing body must vote in favor of | ||
the ordinance, resolution, or order. A motion to adopt an | ||
ordinance, resolution, or order setting a tax rate that exceeds the | ||
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 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 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 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 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 EFFECTIVE MAINTENANCE AND OPERATIONS RATE) | ||
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A | ||
$100,000 HOME BY APPROXIMATELY $(Insert amount)." | ||
SECTION 6. Section 26.06(d), Tax Code, is amended to read as | ||
follows: | ||
(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 | ||
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)." | ||
SECTION 7. Section 26.15(f), Tax Code, is amended to read as | ||
follows: | ||
(f) If a correction that decreases the tax liability of a | ||
property owner is made after the owner has paid the tax, the taxing | ||
unit shall refund to the property owner the difference between the | ||
tax paid and the tax legally due, except as provided by Section | ||
25.25(n). A property owner is not required to apply for a refund | ||
under this subsection to receive the refund. | ||
SECTION 8. Section 26.08(b), Tax Code, is amended to read as | ||
follows: | ||
(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 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 rollback tax rate in the appropriate | ||
places. | ||
SECTION 9. Section 42.23, Tax Code, is amended by adding | ||
Subsection (i) to read as follows: | ||
(i) If an appraisal district employee testifies as to the | ||
value of real property in an appeal under Section 42.25 or 42.26, | ||
the court may give preference to an employee who is a person | ||
authorized to perform an appraisal of real estate under Section | ||
1103.201, Occupations Code. | ||
SECTION 10. Section 42.43(b), Tax Code, is amended to read | ||
as follows: | ||
(b) For a refund made under this section, the taxing unit | ||
shall include with the refund interest on the amount refunded | ||
calculated at an annual rate of 9.5 [ |
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calculated from the delinquency date for the taxes until the date | ||
the refund is made. | ||
SECTION 11. Sections 140.010(e) and (f), Local Government | ||
Code, are amended to read as follows: | ||
(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 | ||
"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. | ||
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS | ||
FOLLOWS: | ||
property tax amount = (rate) x (taxable value of your property) / | ||
100 | ||
"For assistance or detailed information about tax calculations, | ||
please contact: | ||
(insert name of county or municipal tax assessor-collector) | ||
(insert name of county or municipality) tax | ||
assessor-collector | ||
(insert address) | ||
(insert telephone number) | ||
(insert e-mail address) | ||
(insert Internet website address, if applicable) | ||
"You are urged to attend and express your views at the following | ||
public hearings on the proposed tax rate: | ||
First Hearing: (insert date and time) at (insert location of | ||
meeting). | ||
Second Hearing: (insert date and time) at (insert location | ||
of meeting)." | ||
(f) A county or municipality shall: | ||
(1) provide the notice required by Subsection (d) or | ||
(e), as applicable, not later than the later of September 1 or the | ||
30th day after the first date that the taxing unit has received each | ||
applicable certified appraisal roll by: | ||
(A) publishing the notice in a newspaper having | ||
general circulation in: | ||
(i) the county, in the case of notice | ||
published by a county; or | ||
(ii) the county in which the municipality | ||
is located or primarily located, in the case of notice published by | ||
a municipality; or | ||
(B) mailing the notice to each property owner in: | ||
(i) the county, in the case of notice | ||
provided by a county; or | ||
(ii) the municipality, in the case of | ||
notice provided by a municipality; and | ||
(2) post the notice on the Internet website of the | ||
county or municipality, if applicable, beginning not later than the | ||
later of September 1 or the 30th day after the first date that the | ||
taxing unit has received each applicable certified appraisal roll | ||
and continuing until the county or municipality adopts a tax rate. | ||
SECTION 12. Subchapter H, Chapter 49, Water Code, is | ||
amended by adding Section 49.2361 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 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 13. The changes in law made by this Act apply only | ||
to an ad valorem tax year that begins on or after the effective date | ||
of this Act. | ||
SECTION 14. (a) Except as provided by Subsection (b) of this | ||
section, this Act takes effect January 1, 2016. | ||
(b) Section 42.23(i), Tax Code, as added by this Act, takes | ||
effect January 1, 2020. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1760 passed the Senate on | ||
April 30, 2015, by the following vote: Yeas 24, Nays 7; and that | ||
the Senate concurred in House amendments on May 27, 2015, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1760 passed the House, with | ||
amendments, on May 22, 2015, by the following vote: Yeas 138, | ||
Nays 1, three present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |