Bill Text: TX SB2 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to ad valorem taxation.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced) 2016-11-29 - Filed [SB2 Detail]

Download: Texas-2017-SB2-Introduced.html
  85R4849 SMH/TJB/CJC/LHC-D
 
  By: Bettencourt, et al. S.B. No. 2
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to ad valorem taxation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  This Act may be cited as the Texas Property Tax
  Reform and Relief Act of 2017.
         SECTION 2.  Chapter 5, Tax Code, is amended by adding
  Sections 5.01 and 5.02 to read as follows:
         Sec. 5.01.  PROPERTY TAX ADMINISTRATION ADVISORY BOARD. (a)
  The comptroller shall appoint the property tax administration
  advisory board to advise the comptroller with respect to the
  division or divisions within the office of the comptroller with
  primary responsibility for state administration of property
  taxation and state oversight of appraisal districts and local tax
  offices. The advisory board shall make recommendations to the
  comptroller regarding:
               (1)  proposed property tax rules and prescribed
  procedures and forms;
               (2)  minimum standards for the administration and
  operation of an appraisal district;
               (3)  minimum standards for the administration and
  operation of a local tax office;
               (4)  appointment of the director, managers, and other
  executive staff of the division or divisions within the office of
  the comptroller with primary responsibility for state
  administration of property taxation and state oversight of
  appraisal districts and local tax offices;
               (5)  property tax publications, guidelines, and
  communications;
               (6)  property value studies for school districts and
  ratio studies for appraisal districts;
               (7)  reviews of appraisal districts and appraisal
  review boards;
               (8)  computer hardware and software needs for:
                     (A)  the division or divisions within the office
  of the comptroller with primary responsibility for state
  administration of property taxation and state oversight of
  appraisal districts and local tax offices;
                     (B)  appraisal districts; and
                     (C)  local tax offices; and
               (9)  other property tax operational matters.
         (b)  The advisory board is composed of six members appointed
  by the comptroller with the advice of the governor, lieutenant
  governor, and speaker of the house of representatives. Board
  members serve at the pleasure of the comptroller.
         (c)  The members of the advisory board must have knowledge of
  or experience in property tax administration, appraisal, or law.
         (d)  Appointments to the advisory board shall be made without
  regard to the race, color, disability, gender, religion, age, or
  national origin of appointees.
         (e)  Each member of the advisory board must be a resident of
  this state.
         (f)  An elected official may not serve on the advisory board.
         (g)  The advisory board is governed exclusively by this
  chapter.
         (h)  The comptroller's staff shall provide assistance to the
  advisory board in performing its duties.
         Sec. 5.02.  RESTRICTIONS ON ADVISORY BOARD MEMBERSHIP. A
  person is not eligible to serve on the property tax administration
  advisory board if the person or the person's spouse:
               (1)  is employed by or contracts with the comptroller,
  an appraisal district, or a taxing unit;
               (2)  owns or controls, directly or indirectly, more
  than a 10 percent interest in a business entity or other
  organization receiving money from the comptroller, an appraisal
  district, or a taxing unit; or
               (3)  receives money from a business entity or other
  organization receiving money from the comptroller, an appraisal
  district, or a taxing unit in an amount that exceeds five percent of
  the person's gross income for the preceding calendar year.
         SECTION 3.  Section 5.05, Tax Code, is amended by adding
  Subsection (c-1) to read as follows:
         (c-1)  An appraisal district shall appraise property in
  accordance with any appraisal manuals prepared and issued by the
  comptroller under this section.
         SECTION 4.  Sections 5.102(a) and (c), Tax Code, are amended
  to read as follows:
         (a)  At least once every two years, the comptroller shall
  review the governance of each appraisal district, taxpayer
  assistance provided, and the operating and appraisal standards,
  procedures, and methodology used by each appraisal district, to
  determine compliance with generally accepted standards,
  procedures, and methodology, including compliance with standards,
  procedures, and methodology prescribed by appraisal manuals
  prepared and issued by the comptroller.  After consultation with
  the property tax administration advisory board [committee created
  under Section 403.302, Government Code], the comptroller by rule
  may establish procedures and standards for conducting and scoring
  the review.
         (c)  At the conclusion of the review, the comptroller shall,
  in writing, notify the appraisal district concerning its
  performance in the review. If the review results in a finding that
  an appraisal district is not in compliance with generally accepted
  standards, procedures, and methodology, including compliance with
  standards, procedures, and methodology prescribed by appraisal
  manuals prepared and issued by the comptroller, the comptroller
  shall deliver a report that details the comptroller's findings and
  recommendations for improvement to:
               (1)  the appraisal district's chief appraiser and board
  of directors; and
               (2)  the superintendent and board of trustees of each
  school district participating in the appraisal district.
         SECTION 5.  Section 5.13(d), Tax Code, is amended to read as
  follows:
         (d)  In conducting a general audit, the comptroller shall
  consider and report on:
               (1)  the extent to which the district complies with
  applicable law or generally accepted standards of appraisal or
  other relevant practice, including appraisal standards and
  practices prescribed by appraisal manuals prepared and issued by
  the comptroller;
               (2)  the uniformity and level of appraisal of major
  kinds of property and the cause of any significant deviations from
  ideal uniformity and equality of appraisal of major kinds of
  property;
               (3)  duplication of effort and efficiency of operation;
               (4)  the general efficiency, quality of service, and
  qualification of appraisal district personnel; and
               (5)  except as otherwise provided by Subsection (b) [of
  this section], any other matter included in the request for the
  audit.
         SECTION 6.  Section 6.03(a), Tax Code, is amended to read as
  follows:
         (a)  The appraisal district is governed by a board of
  directors. Five directors are appointed by the taxing units that
  participate in the district as provided by this section. If the
  county assessor-collector is not appointed to the board, the county
  assessor-collector serves as a nonvoting director. The county
  assessor-collector is ineligible to serve if the board enters into
  a contract under Section 6.05(b) or if the commissioners court of
  the county enters into a contract under Section 6.24(b). To be
  eligible to serve on the board of directors, an individual other
  than a county assessor-collector serving as a nonvoting director
  must:
               (1)  be a resident of the district;
               (2)  [and must] have resided in the district for at
  least two years immediately preceding the date the individual takes
  office; and
               (3)  be an elected county officer or an elected
  official of a political subdivision all or part of the territory of
  which is located in the county. [An individual who is otherwise
  eligible to serve on the board is not ineligible because of
  membership on the governing body of a taxing unit. An employee of a
  taxing unit that participates in the district is not eligible to
  serve on the board unless the individual is also a member of the
  governing body or an elected official of a taxing unit that
  participates in the district.]
         SECTION 7.  Section 6.41, Tax Code, is amended by amending
  Subsections (b) and (d-9) and adding Subsections (b-1), (b-2), and
  (d-10) to read as follows:
         (b)  Except as provided by Subsection (b-1) or (b-2), an
  appraisal review [The] board consists of three members.
         (b-1)  An appraisal [However, the] district board of
  directors by resolution of a majority of the board's [its] members
  may increase the size of the district's appraisal review board to
  the number of members the board of directors considers appropriate.
         (b-2)  An appraisal district board of directors for a
  district established in a county described by Subsection (d-1) by
  resolution of a majority of the board's members shall increase the
  size of the district's appraisal review board to the number of
  members the board of directors considers appropriate to manage the
  duties of the appraisal review board, including the duties of each
  special panel established under Section 6.425.
         (d-9)  In selecting individuals who are to serve as members
  of the appraisal review board, the local administrative district
  judge shall select an adequate number of qualified individuals to
  permit the chairman of the appraisal review board to fill the
  positions on each special panel established under Section 6.425.
         (d-10)  Upon selection of the individuals who are to serve as
  members of the appraisal review board, the local administrative
  district judge shall enter an appropriate order designating such
  members and setting each member's respective term of office, as
  provided elsewhere in this section.
         SECTION 8.  Section 6.414(d), Tax Code, is amended to read as
  follows:
         (d)  An auxiliary board member may hear taxpayer protests
  before the appraisal review board. An auxiliary board member may
  not hear taxpayer protests before a special panel established under
  Section 6.425 unless the member is eligible to be appointed to the
  special panel. If one or more auxiliary board members sit on a panel
  established under Section 6.425 or 41.45 to conduct a protest
  hearing, the number of regular appraisal review board members
  required by that section to constitute the panel is reduced by the
  number of auxiliary board members sitting. An auxiliary board
  member sitting on a panel is considered a regular board member for
  all purposes related to the conduct of the hearing.
         SECTION 9.  Section 6.42, Tax Code, is amended by adding
  Subsection (d) to read as follows:
         (d)  The concurrence of a majority of the members of the
  appraisal review board or a panel of the board present at a meeting
  of the board or panel is sufficient for a recommendation,
  determination, decision, or other action by the board or panel, and
  the concurrence of more than a majority of the members of the board
  or panel may not be required.
         SECTION 10.  Subchapter C, Chapter 6, Tax Code, is amended by
  adding Section 6.425 to read as follows:
         Sec. 6.425.  SPECIAL APPRAISAL REVIEW BOARD PANELS IN
  CERTAIN DISTRICTS. (a) This section applies only to the appraisal
  review board for an appraisal district described by Section
  6.41(b-2).
         (b)  The appraisal review board shall establish a separate
  special panel for each of the following classifications of property
  to conduct protest hearings under Chapter 41 relating to property
  included in that classification:
               (1)  commercial real and personal property;
               (2)  real and personal property of utilities;
               (3)  industrial and manufacturing real and personal
  property; and
               (4)  multifamily residential real property.
         (c)  The chairman of the appraisal review board may establish
  additional special panels described by this section to conduct
  protest hearings relating to property included in a classification
  described by Subsection (b) if the chairman determines that
  additional panels are necessary.
         (d)  Each special panel described by this section consists of
  three members of the appraisal review board appointed by the
  chairman of the board.
         (e)  To be eligible to be appointed to a special panel
  described by this section, a member of the appraisal review board
  must:
               (1)  hold a juris doctor or equivalent degree;
               (2)  hold a master of business administration degree;
               (3)  be licensed as a certified public accountant under
  Chapter 901, Occupations Code;
               (4)  be accredited by the American Society of
  Appraisers as an accredited senior appraiser;
               (5)  possess an MAI professional designation from the
  Appraisal Institute;
               (6)  possess a Certified Assessment Evaluator (CAE)
  professional designation from the International Association of
  Assessing Officers; or
               (7)  have at least 20 years of experience in property
  tax appraisal or consulting.
         (f)  Notwithstanding Subsection (e), the chairman of the
  appraisal review board may appoint to a special panel described by
  this section a member of the appraisal review board who does not
  meet the qualifications prescribed by that subsection if:
               (1)  the number of persons appointed to the board by the
  local administrative district judge who meet those qualifications
  is not sufficient to fill the positions on each special panel; and
               (2)  the board member being appointed to the panel:
                     (A)  holds a bachelor's degree in any field; or
                     (B)  is licensed as a real estate broker or sales
  agent under Chapter 1101, Occupations Code.
         SECTION 11.  The heading to Section 11.145, Tax Code, is
  amended to read as follows:
         Sec. 11.145.  INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
  HAVING VALUE OF LESS THAN $2,500 [$500].
         SECTION 12.  Section 11.145(a), Tax Code, is amended to read
  as follows:
         (a)  A person is entitled to an exemption from taxation of
  the tangible personal property the person owns that is held or used
  for the production of income if that property has a taxable value of
  less than $2,500 [$500].
         SECTION 13.  Section 22.23, Tax Code, is amended to read as
  follows:
         Sec. 22.23.  FILING DATE. (a) Rendition statements and
  property reports must be delivered to the chief appraiser after
  January 1 and not later than March [April] 15, except as provided by
  Section 22.02.
         (b)  On written request by the property owner, the chief
  appraiser shall extend a deadline for filing a rendition statement
  or property report to April [May] 15. The chief appraiser may
  further extend the deadline an additional 15 days upon good cause
  shown in writing by the property owner.
         SECTION 14.  Section 23.01(b), Tax Code, is amended to read
  as follows:
         (b)  The market value of property shall be determined by the
  application of generally accepted appraisal methods and
  techniques, including appraisal methods and techniques prescribed
  by appraisal manuals prepared and issued by the comptroller.  If
  the appraisal district determines the appraised value of a property
  using mass appraisal standards, the mass appraisal standards must
  comply with the Uniform Standards of Professional Appraisal
  Practice. The same or similar appraisal methods and techniques
  shall be used in appraising the same or similar kinds of
  property.  However, each property shall be appraised based upon the
  individual characteristics that affect the property's market
  value, and all available evidence that is specific to the value of
  the property shall be taken into account in determining the
  property's market value.
         SECTION 15.  Section 25.19, Tax Code, is amended by amending
  Subsections (a) and (g) and adding Subsection (b-3) to read as
  follows:
         (a)  By April 15 [1] or as soon thereafter as practicable [if
  the property is a single-family residence that qualifies for an
  exemption under Section 11.13, or by May 1 or as soon thereafter as
  practicable in connection with any other property], the chief
  appraiser shall deliver a clear and understandable written notice
  to a property owner of the appraised value of the property owner's
  property if:
               (1)  the appraised value of the property is greater
  than it was in the preceding year;
               (2)  the appraised value of the property is greater
  than the value rendered by the property owner;
               (3)  the property was not on the appraisal roll in the
  preceding year; or
               (4)  an exemption or partial exemption approved for the
  property for the preceding year was canceled or reduced for the
  current year.
         (b-3)  This subsection applies only to an appraisal district
  described by Section 6.41(b-2). In addition to the information
  required by Subsection (b), the chief appraiser shall state in a
  notice of appraised value of property included in a classification
  described by Section 6.425(b) that the property owner has the right
  to have a protest relating to the property heard by a special panel
  of the appraisal review board.
         (g)  By April 15 [1] or as soon thereafter as practicable [if
  the property is a single-family residence that qualifies for an
  exemption under Section 11.13, or by May 1 or as soon thereafter as
  practicable in connection with any other property], the chief
  appraiser shall deliver a written notice to the owner of each
  property not included in a notice required to be delivered under
  Subsection (a), if the property was reappraised in the current tax
  year, if the ownership of the property changed during the preceding
  year, or if the property owner or the agent of a property owner
  authorized under Section 1.111 makes a written request for the
  notice.  The chief appraiser shall separate real from personal
  property and include in the notice for each property:
               (1)  the appraised value of the property in the
  preceding year;
               (2)  the appraised value of the property for the
  current year and the kind of each partial exemption, if any,
  approved for the current year;
               (3)  a detailed explanation of the time and procedure
  for protesting the value; and
               (4)  the date and place the appraisal review board will
  begin hearing protests.
         SECTION 16.  Section 25.22(a), Tax Code, is amended to read
  as follows:
         (a)  By May 1 [15] or as soon thereafter as practicable, the
  chief appraiser shall submit the completed appraisal records to the
  appraisal review board for review and determination of protests.
  However, the chief appraiser may not submit the records until the
  chief appraiser has delivered the notices required by Subsection
  (d) of Section 11.45, Subsection (d) of Section 23.44, Subsection
  (d) of Section 23.57, Subsection (d) of Section 23.79, Subsection
  (d) of Section 23.85, Subsection (d) of Section 23.95, Subsection
  (d) of Section 23.9805, and Section 25.19.
         SECTION 17.  Sections 26.01(a) and (e), Tax Code, are
  amended to read as follows:
         (a)  By July 10 [25], the chief appraiser shall prepare and
  certify to the assessor for each taxing unit participating in the
  district that part of the appraisal roll for the district that lists
  the property taxable by the unit. The part certified to the
  assessor is the appraisal roll for the unit. The chief appraiser
  shall consult with the assessor for each taxing unit and notify each
  unit in writing by April 1 of the form in which the roll will be
  provided to each unit.
         (e)  Except as provided by Subsection (f), not later than May
  15 [April 30], the chief appraiser shall prepare and certify to the
  assessor for each county, municipality, and school district
  participating in the appraisal district an estimate of the taxable
  value of property in that taxing unit. The chief appraiser shall
  assist each county, municipality, and school district in
  determining values of property in that taxing unit for the taxing
  unit's budgetary purposes.
         SECTION 18.  Section 26.04, Tax Code, is amended by amending
  Subsections (b), (c), and (e) and adding Subsection (c-1) to read as
  follows:
         (b)  The assessor shall submit the appraisal roll for the
  unit showing the total appraised, assessed, and taxable values of
  all property and the total taxable value of new property to the
  governing body of the unit by July 15 [August 1] or as soon
  thereafter as practicable. By July 15 [August 1] or as soon
  thereafter as practicable, the taxing unit's collector shall
  certify an estimate of the collection rate for the current year to
  the governing body. If the collector certified an anticipated
  collection rate in the preceding year and the actual collection
  rate in that year exceeded the anticipated rate, the collector
  shall also certify the amount of debt taxes collected in excess of
  the anticipated amount in the preceding year.
         (c)  An officer or employee designated by the governing body
  shall calculate the effective tax rate and the rollback tax rate for
  the unit, where:
               (1)  "Effective tax rate" means a rate expressed in
  dollars per $100 of taxable value calculated according to the
  following formula:
         EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
  LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
         ; and
               (2)  "Rollback tax rate" means a rate expressed in
  dollars per $100 of taxable value calculated according to the
  following formula:
         ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
  OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE
         (c-1)  Notwithstanding any other provision of this section,
  the governing body may direct the designated officer or employee to
  substitute "1.08" for "1.04" in the calculation of the rollback tax
  rate if any part of the taxing unit is located in an area declared a
  disaster area during the current tax year by the governor or by the
  president of the United States.
         (e)  By July 22 [August 7] or as soon thereafter as
  practicable, the designated officer or employee shall submit the
  rates to the governing body. By July 27, 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;
               (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 19.  Section 26.041, Tax Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsection (c-1)
  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 rollback
  tax rate for the unit are calculated according to the following
  formulas:
         EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
  LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
  SALES TAX GAIN RATE
  and
         ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
  OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE -
  SALES TAX GAIN RATE
  where "sales tax gain rate" means a number expressed in dollars per
  $100 of taxable value, calculated by dividing the revenue that will
  be generated by the additional sales and use tax in the following
  year as calculated under Subsection (d) [of this section] by the
  current total value.
         (b)  Except as provided by Subsections (a) and (c) [of this
  section], in a year in which a taxing unit imposes an additional
  sales and use tax the rollback tax rate for the unit is calculated
  according to the following formula, regardless of whether the unit
  levied a property tax in the preceding year:
         ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
  OPERATIONS EXPENSE x 1.04 [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 rollback tax rate for the
  unit are calculated according to the following formulas:
         EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
  LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
  SALES TAX LOSS RATE
  and
  ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
  OPERATIONS EXPENSE x 1.04 [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.
         (c-1)  Notwithstanding any other provision of this section,
  the governing body may direct the designated officer or employee to
  substitute "1.08" for "1.04" in the calculation of the rollback tax
  rate if any part of the taxing unit is located in an area declared a
  disaster area during the current tax year by the governor or by the
  president of the United States.
         SECTION 20.  Section 26.05(a), Tax Code, is amended to read
  as follows:
         (a)  The governing body of each taxing unit[, before the
  later of September 30 or the 60th day after the date the certified
  appraisal roll is received by the taxing unit,] shall adopt a tax
  rate for the current tax year and shall notify the assessor for the
  unit of the rate adopted.  The governing body must adopt a tax rate
  before the later of September 30 or the 60th day after the date the
  certified appraisal roll is received by the taxing unit, except
  that the governing body must adopt a tax rate that exceeds the
  rollback tax rate before August 15. The tax rate consists of two
  components, each of which must be approved separately.  The
  components are:
               (1)  for a taxing unit other than a school district, the
  rate that, if applied to the total taxable value, will impose the
  total amount published under Section 26.04(e)(3)(C), less any
  amount of additional sales and use tax revenue that will be used to
  pay debt service, or, for a school district, the rate calculated
  under Section 44.004(c)(5)(A)(ii)(b), Education Code; and
               (2)  the rate that, if applied to the total taxable
  value, will impose the amount of taxes needed to fund maintenance
  and operation expenditures of the unit for the next year.
         SECTION 21.  Section 26.06(e), Tax Code, is amended to read
  as follows:
         (e)  The meeting to vote on the tax increase may not be
  earlier than the third day or later than the seventh [14th] day
  after the date of the second public hearing.  The meeting must be
  held inside the boundaries of the taxing unit in a publicly owned
  building or, if a suitable publicly owned building is not
  available, in a suitable building to which the public normally has
  access.  If the governing body does not adopt a tax rate that
  exceeds the lower of the rollback tax rate or the effective tax rate
  by the seventh [14th] day, it must give a new notice under
  Subsection (d) before it may adopt a rate that exceeds the lower of
  the rollback tax rate or the effective tax rate.
         SECTION 22.  The heading to Section 26.08, Tax Code, is
  amended to read as follows:
         Sec. 26.08.  ELECTION TO RATIFY TAX RATE [SCHOOL TAXES].
         SECTION 23.  Sections 26.08(a), (b), (d), (d-1), (d-2), (e),
  and (h), Tax Code, are amended to read as follows:
         (a)  If the governing body of a taxing unit [school district]
  adopts a tax rate that exceeds the taxing unit's [district's]
  rollback tax rate, the registered voters of the taxing unit
  [district] at an election held for that purpose must determine
  whether to approve the adopted tax rate. When increased
  expenditure of money by a taxing unit [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 the taxing unit [a school district] and the governor has
  requested federal disaster assistance for the area in which the
  taxing unit [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 taxing unit [school district] on the uniform election date
  prescribed by [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, that occurs in November of the applicable tax year. The order
  calling the election may not be issued later than August 15 [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 taxing unit [school district]) for the
  current year, a rate that is $_____ higher per $100 valuation than
  the [school district] rollback tax rate of (name of taxing unit),
  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.
         (d)  If the proposition is not approved as provided by
  Subsection (c), the governing body may not adopt a tax rate for the
  taxing unit [school district] for the current year that exceeds the
  taxing unit's [school district's] rollback tax rate.
         (d-1)  If, after tax bills for the taxing unit [school
  district] have been mailed, a proposition to approve the taxing
  unit's [school district's] adopted tax rate is not approved by the
  voters of the taxing unit [district] at an election held under this
  section, on subsequent adoption of a new tax rate by the governing
  body of the taxing unit [district], the assessor for the taxing unit
  [school] shall prepare and mail corrected tax bills.  The assessor
  shall include with each bill a brief explanation of the reason for
  and effect of the corrected bill.  The date on which the taxes
  become delinquent for the year is extended by a number of days equal
  to the number of days between the date the first tax bills were sent
  and the date the corrected tax bills were sent.
         (d-2)  If a property owner pays taxes calculated using the
  originally adopted tax rate of the taxing unit [school district]
  and the proposition to approve the adopted tax rate is not approved
  by the voters, the taxing unit [school district] shall refund the
  difference between the amount of taxes paid and the amount due under
  the subsequently adopted rate if the difference between the amount
  of taxes paid and the amount due under the subsequent rate is $1 or
  more.  If the difference between the amount of taxes paid and the
  amount due under the subsequent rate is less than $1, the taxing
  unit [school district] shall refund the difference on request of
  the taxpayer.  An application for a refund of less than $1 must be
  made within 90 days after the date the refund becomes due or the
  taxpayer forfeits the right to the refund.
         (e)  For purposes of this section, local tax funds dedicated
  to a junior college district under Section 45.105(e), Education
  Code, shall be eliminated from the calculation of the tax rate
  adopted by the governing body of a [the] school district. However,
  the funds dedicated to the junior college district are subject to
  Section 26.085.
         (h)  For purposes of this section, increases in taxable
  values and tax levies occurring within a reinvestment zone under
  Chapter 311 (Tax Increment Financing Act), in which a school [the]
  district is a participant, shall be eliminated from the calculation
  of the tax rate adopted by the governing body of the school
  district.
         SECTION 24.  Section 26.16(d), Tax Code, is amended to read
  as follows:
         (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
  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
  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 rollback tax rate is the highest tax rate a taxing unit
  may adopt before requiring voter approval at an election. An [In
  the case of a taxing unit other than a school district, the voters
  by petition may require that a rollback election be held if the unit
  adopts a tax rate in excess of the unit's rollback tax rate. In the
  case of a school district, an] election will automatically be held
  if a taxing unit [the district] wishes to adopt a tax rate in excess
  of the unit's [district's] rollback tax rate."
         SECTION 25.  Sections 31.12(a) and (b), Tax Code, are
  amended to read as follows:
         (a)  If a refund of a tax provided by Section 11.431(b),
  26.08(d-2) [26.07(g)], 26.15(f), 31.11, or 31.111 is paid on or
  before the 60th day after the date the liability for the refund
  arises, no interest is due on the amount refunded. If not paid on or
  before that 60th day, the amount of the tax to be refunded accrues
  interest at a rate of one percent for each month or part of a month
  that the refund is unpaid, beginning with the date on which the
  liability for the refund arises.
         (b)  For purposes of this section, liability for a refund
  arises:
               (1)  if the refund is required by Section 11.431(b), on
  the date the chief appraiser notifies the collector for the unit of
  the approval of the late homestead exemption;
               (2)  if the refund is required by Section 26.08(d-2)
  [26.07(g)], on the date the results of the election to reduce the
  tax rate are certified;
               (3)  if the refund is required by Section 26.15(f):
                     (A)  for a correction to the tax roll made under
  Section 26.15(b), on the date the change in the tax roll is
  certified to the assessor for the taxing unit under Section 25.25;
  or
                     (B)  for a correction to the tax roll made under
  Section 26.15(c), on the date the change in the tax roll is ordered
  by the governing body of the taxing unit;
               (4)  if the refund is required by Section 31.11, on the
  date the auditor for the taxing unit determines that the payment was
  erroneous or excessive or, if the amount of the refund exceeds the
  applicable amount specified by Section 31.11(a), on the date the
  governing body of the unit approves the refund; or
               (5)  if the refund is required by Section 31.111, on the
  date the collector for the taxing unit determines that the payment
  was erroneous.
         SECTION 26.  Section 33.08(b), Tax Code, is amended to read
  as follows:
         (b)  The governing body of the taxing unit or appraisal
  district, in the manner required by law for official action, may
  provide that taxes that become delinquent on or after June 1 under
  Section 26.08(d-1) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032,
  31.04, or 42.42 incur an additional penalty to defray costs of
  collection. The amount of the penalty may not exceed the amount of
  the compensation specified in the applicable contract with an
  attorney under Section 6.30 to be paid in connection with the
  collection of the delinquent taxes.
         SECTION 27.  Section 41.03(a), Tax Code, is amended to read
  as follows:
         (a)  A taxing unit is entitled to challenge before the
  appraisal review board:
               (1)  [the level of appraisals of any category of
  property in the district or in any territory in the district, but
  not the appraised value of a single taxpayer's property;
               [(2)]  an exclusion of property from the appraisal
  records;
               (2) [(3)]  a grant in whole or in part of a partial
  exemption;
               (3) [(4)]  a determination that land qualifies for
  appraisal as provided by Subchapter C, D, E, or H, Chapter 23; or
               (4) [(5)]  failure to identify the taxing unit as one
  in which a particular property is taxable.
         SECTION 28.  Section 41.11(a), Tax Code, is amended to read
  as follows:
         (a)  Not later than the date the appraisal review board
  approves the appraisal records as provided by Section 41.12, the
  secretary of the board shall deliver written notice to a property
  owner of any change in the records that is ordered by the board as
  provided by this subchapter and that will result in an increase in
  the tax liability of the property owner. An owner who receives a
  notice as provided by this section shall be entitled to protest such
  action as provided by Section 41.44(a)(2) [41.44(a)(3)].
         SECTION 29.  Section 41.12(a), Tax Code, is amended to read
  as follows:
         (a)  By July 5 [20], the appraisal review board shall:
               (1)  hear and determine all or substantially all timely
  filed protests;
               (2)  determine all timely filed challenges;
               (3)  submit a list of its approved changes in the
  records to the chief appraiser; and
               (4)  approve the records.
         SECTION 30.  Sections 41.44(a), (b-1), (c), and (d), Tax
  Code, are amended to read as follows:
         (a)  Except as provided by Subsections (b), (b-1), (c),
  (c-1), and (c-2), to be entitled to a hearing and determination of a
  protest, the property owner initiating the protest must file a
  written notice of the protest with the appraisal review board
  having authority to hear the matter protested:
               (1)  before May 15 [1] or not later than the 30th day
  after the date that notice to the property owner was delivered to
  the property owner as provided by Section 25.19, [if the property is
  a single-family residence that qualifies for an exemption under
  Section 11.13,] whichever is later;
               (2)  [before June 1 or not later than the 30th day after
  the date that notice was delivered to the property owner as provided
  by Section 25.19 in connection with any other property, whichever
  is later;
               [(3)]  in the case of a protest of a change in the
  appraisal records ordered as provided by Subchapter A of this
  chapter or by Chapter 25, not later than the 30th day after the date
  notice of the change is delivered to the property owner;
               (3) [(4)]  in the case of a determination that a change
  in the use of land appraised under Subchapter C, D, E, or H, Chapter
  23, has occurred, not later than the 30th day after the date the
  notice of the determination is delivered to the property owner; or
               (4) [(5)]  in the case of a determination of
  eligibility for a refund under Section 23.1243, not later than the
  30th day after the date the notice of the determination is delivered
  to the property owner.
         (b-1)  Notwithstanding Subsection (a)(1), an owner of a
  single-family residence that qualifies for an exemption under
  Section 11.13 [property described by that subsection] who files a
  notice of protest after the deadline prescribed by that subsection
  but before the appraisal review board approves the appraisal
  records is entitled to a hearing and determination of the protest if
  the property owner files the notice before June 1.
         (c)  A property owner who files notice of a protest
  authorized by Section 41.411 is entitled to a hearing and
  determination of the protest if the property owner files the notice
  prior to the date the taxes on the property to which the notice
  applies become delinquent. An owner of land who files a notice of
  protest under Subsection (a)(3) [(a)(4)] is entitled to a hearing
  and determination of the protest without regard to whether the
  appraisal records are approved.
         (d)  A notice of protest is sufficient if it identifies the
  protesting property owner, including a person claiming an ownership
  interest in the property even if that person is not listed on the
  appraisal records as an owner of the property, identifies the
  property that is the subject of the protest, and indicates apparent
  dissatisfaction with some determination of the appraisal office.
  The notice need not be on an official form, but the comptroller
  shall prescribe a form that provides for more detail about the
  nature of the protest. The form must permit a property owner to
  include each property in the appraisal district that is the subject
  of a protest. The form must permit a property owner to request that
  the protest be heard by a special panel established under Section
  6.425 if the protest will be determined by an appraisal review board
  to which that section applies and the property is included in a
  classification described by that section. The comptroller, each
  appraisal office, and each appraisal review board shall make the
  forms readily available and deliver one to a property owner on
  request.
         SECTION 31.  Section 41.45, Tax Code, is amended by amending
  Subsection (d) and adding Subsections (d-1), (d-2), and (d-3) to
  read as follows:
         (d)  This subsection does not apply to a special panel
  established under Section 6.425. An appraisal review board
  consisting of more than three members may sit in panels of not fewer
  than three members to conduct protest hearings. [However, the
  determination of a protest heard by a panel must be made by the
  board.] If the recommendation of a panel is not accepted by the
  board, the board may refer the matter for rehearing to a panel
  composed of members who did not hear the original hearing or, if
  there are not at least three members who did not hear the original
  protest, the board may determine the protest. [Before determining a
  protest or conducting a rehearing before a new panel or the board,
  the board shall deliver notice of the hearing or meeting to
  determine the protest in accordance with the provisions of this
  subchapter.]
         (d-1)  An appraisal review board to which Section 6.425
  applies shall sit in special panels established under that section
  to conduct protest hearings. A special panel may conduct a protest
  hearing relating to property only if the property is included in the
  classification for which the panel was established and the property
  owner has requested that the panel conduct the hearing. The board
  may rehear a protest heard by a special panel if the board elects
  not to accept the recommendation of the panel.
         (d-2)  The determination of a protest heard by a panel under
  Subsection (d) or (d-1) must be made by the board.
         (d-3)  The board must deliver notice of a hearing or meeting
  to determine a protest heard by a panel, or to rehear a protest,
  under Subsection (d) or (d-1) in accordance with the provisions of
  this subchapter.
         SECTION 32.  Section 41.66, Tax Code, is amended by amending
  Subsection (k) and adding Subsection (k-1) to read as follows:
         (k)  This subsection does not apply to a special panel
  established under Section 6.425. If an appraisal review board sits
  in panels to conduct protest hearings, protests shall be randomly
  assigned to panels, except that the board may consider the type of
  property subject to the protest or the ground of the protest for the
  purpose of using the expertise of a particular panel in hearing
  protests regarding particular types of property or based on
  particular grounds. If a protest is scheduled to be heard by a
  particular panel, the protest may not be reassigned to another
  panel without the consent of the property owner or designated
  agent. If the appraisal review board has cause to reassign a
  protest to another panel, a property owner or designated agent may
  agree to reassignment of the protest or may request that the hearing
  on the protest be postponed. The board shall postpone the hearing
  on that request. A change of members of a panel because of a
  conflict of interest, illness, or inability to continue
  participating in hearings for the remainder of the day does not
  constitute reassignment of a protest to another panel.
         (k-1)  On the request of a property owner, an appraisal
  review board to which Section 6.425 applies shall assign a protest
  relating to property included in a classification described by that
  section to the special panel established to conduct protest
  hearings relating to property included in that classification.  If
  the board has established more than one special panel to conduct
  protest hearings relating to property included in a particular
  classification, protests relating to property included in that
  classification shall be randomly assigned to those special panels.  
  If a protest is scheduled to be heard by a particular special panel,
  the protest may not be reassigned to another special panel without
  the consent of the property owner or designated agent.  If the board
  has cause to reassign a protest to another special panel, a property
  owner or designated agent may agree to reassignment of the protest
  or may request that the hearing on the protest be postponed.  The
  board shall postpone the hearing on that request.  A change of
  members of a special panel because of a conflict of interest,
  illness, or inability to continue participating in hearings for the
  remainder of the day does not constitute reassignment of a protest
  to another special panel.
         SECTION 33.  Section 41.71, Tax Code, is amended to read as
  follows:
         Sec. 41.71.  EVENING AND WEEKEND HEARINGS. (a) An appraisal
  review board by rule shall provide for hearings on protests [in the
  evening or] on a Saturday or after 5 p.m. on a weekday [Sunday].
         (b)  The board may not schedule:
               (1)  the first hearing on a protest held on a weekday
  evening to begin after 7 p.m.; or
               (2)  a hearing on a protest on a Sunday.
         SECTION 34.  Section 41A.01, Tax Code, is amended to read as
  follows:
         Sec. 41A.01.  RIGHT OF APPEAL BY PROPERTY OWNER. As an
  alternative to filing an appeal under Section 42.01, a property
  owner is entitled to appeal through binding arbitration under this
  chapter an appraisal review board order determining a protest filed
  under Section 41.41(a)(1) or (2) concerning the appraised or market
  value of property if:
               (1)  the property qualifies as the owner's residence
  homestead under Section 11.13; or
               (2)  the appraised or market value, as applicable, of
  the property as determined by the order is $5 [$3] million or less.
         SECTION 35.  Section 41A.03(a), Tax Code, is amended to read
  as follows:
         (a)  To appeal an appraisal review board order under this
  chapter, a property owner must file with the appraisal district not
  later than the 45th day after the date the property owner receives
  notice of the order:
               (1)  a completed request for binding arbitration under
  this chapter in the form prescribed by Section 41A.04; and
               (2)  an arbitration deposit made payable to the
  comptroller in the amount of:
                     (A)  $450, if the property qualifies as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is $500,000 or less,
  as determined by the order;
                     (B)  $500, if the property qualifies as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is more than
  $500,000, as determined by the order;
                     (C)  $500, if the property does not qualify as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is $1 million or
  less, as determined by the order;
                     (D)  $800, if the property does not qualify as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is more than $1
  million but not more than $2 million, as determined by the order;
  [or]
                     (E)  $1,050, if the property does not qualify as
  the owner's residence homestead under Section 11.13 and the
  appraised or market value, as applicable, of the property is more
  than $2 million but not more than $3 million, as determined by the
  order; or
                     (F)  $1,250, if the property does not qualify as
  the owner's residence homestead under Section 11.13 and the
  appraised or market value, as applicable, of the property is more
  than $3 million but not more than $5 million, as determined by the
  order.
         SECTION 36.  Section 41A.06(b), Tax Code, is amended to read
  as follows:
         (b)  To initially qualify to serve as an arbitrator under
  this chapter, a person must:
               (1)  meet the following requirements, as applicable:
                     (A)  be licensed as an attorney in this state; or
                     (B)  have:
                           (i)  completed at least 30 hours of training
  in arbitration and alternative dispute resolution procedures from a
  university, college, or legal or real estate trade association; and
                           (ii)  been licensed or certified
  continuously during the five years preceding the date the person
  agrees to serve as an arbitrator as:
                                 (a)  a real estate broker or sales
  agent [salesperson] under Chapter 1101, Occupations Code;
                                 (b)  a real estate appraiser under
  Chapter 1103, Occupations Code; or
                                 (c)  a certified public accountant
  under Chapter 901, Occupations Code; and
               (2)  agree to conduct an arbitration for a fee that is
  not more than:
                     (A)  $400, if the property qualifies as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is $500,000 or less,
  as determined by the order;
                     (B)  $450, if the property qualifies as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is more than
  $500,000, as determined by the order;
                     (C)  $450, if the property does not qualify as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is $1 million or
  less, as determined by the order;
                     (D)  $750, if the property does not qualify as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is more than $1
  million but not more than $2 million, as determined by the order;
  [or]
                     (E)  $1,000, if the property does not qualify as
  the owner's residence homestead under Section 11.13 and the
  appraised or market value, as applicable, of the property is more
  than $2 million but not more than $3 million, as determined by the
  order; or
                     (F)  $1,200, if the property does not qualify as
  the owner's residence homestead under Section 11.13 and the
  appraised or market value, as applicable, of the property is more
  than $3 million but not more than $5 million, as determined by the
  order.
         SECTION 37.  Section 130.016(b), Education Code, is amended
  to read as follows:
         (b)  If the board of trustees of an independent school
  district that divests itself of the management, control, and
  operation of a junior college district under this section or under
  Section 130.017 [of this code] was authorized by [Subsection (e)
  of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
  this code] to dedicate a portion of its tax levy to the junior
  college district before the divestment, the junior college district
  may levy an ad valorem tax from and after the divestment. In the
  first two years in which the junior college district levies an ad
  valorem tax, the tax rate adopted by the governing body may not
  exceed the rate that, if applied to the total taxable value
  submitted to the governing body under Section 26.04, Tax Code,
  would impose an amount equal to the amount of taxes of the school
  district dedicated to the junior college under [Subsection (e) of]
  Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
  in the last dedication before the divestment. In subsequent years,
  the tax rate of the junior college district is subject to Section
  26.08 [26.07], Tax Code.
         SECTION 38.  Section 403.302(o), Government Code, is amended
  to read as follows:
         (o)  The comptroller shall adopt rules governing the conduct
  of the study after consultation with the comptroller's property tax
  administration advisory board [Comptroller's Property Value Study
  Advisory Committee].
         SECTION 39.  Sections 281.124(d) and (e), Health and Safety
  Code, are amended to read as follows:
         (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 rollback
  election under] Section 26.08 [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 (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 26.08 [26.07], Tax Code, applies to the
  adopted rate if that rate exceeds the district's rollback tax rate.
         SECTION 40.  Sections 140.010(d) and (e), Local Government
  Code, are amended to read as follows:
         (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
  "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]
  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 without holding [before voters
  are entitled to petition for] an election to ratify [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)."
         SECTION 41.  Section 1101.254(f), Special District Local
  Laws Code, is amended to read as follows:
         (f)  This section does not affect the applicability of [any
  rights district voters may have to petition for an election under]
  Section 26.08 [26.07], Tax Code, to the district's tax rate, except
  that if district voters approve a tax rate increase under this
  section, [the voters may not petition for an election under]
  Section 26.08 [26.07], Tax Code, does not apply [as] to the tax rate
  for that year.
         SECTION 42.  Sections 1122.2522, 3828.157, and 8876.152,
  Special District Local Laws Code, are amended to read as follows:
         Sec. 1122.2522.  ROLLBACK TAX RATE PROVISIONS APPLICABLE.
  [(a)] If in any year the board adopts a tax rate that exceeds the
  rollback tax rate calculated as provided by Chapter 26, Tax Code,
  [the qualified voters of the district by petition may require that]
  an election under Section 26.08 of that code must be held to
  determine whether or not to approve [reduce] the tax rate adopted by
  the board for that year [to the 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.]
         Sec. 3828.157.  INAPPLICABILITY OF CERTAIN TAX CODE
  PROVISIONS. Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
  not apply to a tax imposed under Section 3828.153 or 3828.156.
         Sec. 8876.152.  APPLICABILITY OF CERTAIN TAX PROVISIONS.
  (a)  Sections 26.04, 26.05, 26.06, and 26.08 [26.07], Tax Code, do
  not apply to a tax imposed by the district.
         (b)  Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
  Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
  78th Legislature, Regular Session, 2003, applies] to the district.
         SECTION 43.  Section 49.107(g), Water Code, is amended to
  read as follows:
         (g)  Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
  not apply to a tax levied and collected under this section or an ad
  valorem tax levied and collected for the payment of the interest on
  and principal of bonds issued by a district.
         SECTION 44.  Section 49.108(f), Water Code, is amended to
  read as follows:
         (f)  Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
  not apply to a tax levied and collected for payments made under a
  contract approved in accordance with this section.
         SECTION 45.  Section 49.236, Water Code, as added by Chapter
  335 (S.B. 392), Acts of the 78th Legislature, Regular Session,
  2003, is amended by amending Subsections (a) and (d) and adding
  Subsection (e) 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
                     (G)  if the proposed combined debt service,
  operation and maintenance, and contract tax rate exceeds the
  rollback tax rate, a description of the purpose of the proposed tax
  increase; and
               (3)  contain a statement in substantially the following
  form:
  "NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
         "If operation and maintenance taxes on the average residence
  homestead increase by more than four [eight] percent, [the
  qualified voters of the district by petition may require that] an
  election must be held to determine whether to ratify [reduce] the
  operation and maintenance tax rate [to the 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
  exceeds the rollback tax rate, [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 must be held to determine
  whether [or not] to ratify [reduce] the tax rate adopted for the
  current year [to the rollback tax rate] in accordance with the
  procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and
  26.081], Tax Code. For purposes of Sections 26.08(b)-(d) 
  [26.07(b)-(g)] and this section [subsection], the rollback tax rate
  is the sum of the following tax rates:
               (1)  the current year's debt service tax rate;
               (2)  the current year's [and] contract tax rate; and
               (3)  [rates plus] the operation and maintenance tax
  rate that would impose 1.04 [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.
         (e)  Notwithstanding any other provision of this section,
  the board may substitute "eight percent" for "four percent" in
  Subsection (a) and "1.08" for "1.04" in Subsection (d) if any part
  of the district is located in an area declared a disaster area
  during the current tax year by the governor or by the president of
  the United States.
         SECTION 46.  The following provisions are repealed:
               (1)  Sections 403.302(m-1) and (n), Government Code;
               (2)  Section 1063.255, Special District Local Laws
  Code;
               (3)  Section 26.07, Tax Code;
               (4)  Section 49.236, Water Code, as added by Chapter
  248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
  2003; and
               (5)  Section 49.2361, Water Code.
         SECTION 47.  The changes in law made by this Act relating to
  the ad valorem tax rate of a taxing unit apply beginning with the
  2018 tax year.
         SECTION 48.  Sections 5.05, 5.102, 5.13, and 23.01, Tax
  Code, as amended by this Act, apply only to the appraisal of
  property for ad valorem tax purposes for a tax year beginning on or
  after January 1, 2018.
         SECTION 49.  Section 6.03(a), Tax Code, as amended by this
  Act, does not affect the right of a person serving on the board of
  directors of an appraisal district on January 1, 2018, to complete
  the person's term on the board.
         SECTION 50.  Section 6.41(d-9), Tax Code, as amended by this
  Act, and Section 6.41(d-10), Tax Code, as added by this Act, apply
  only to the appointment of appraisal review board members to terms
  beginning on or after January 1, 2019.
         SECTION 51.  Section 6.42(d), Tax Code, as added by this Act,
  applies only to a recommendation, determination, decision, or other
  action by an appraisal review board or a panel of such a board on or
  after January 1, 2018. A recommendation, determination, decision,
  or other action by an appraisal review board or a panel of such a
  board before January 1, 2018, is governed by the law as it existed
  immediately before that date, and that law is continued in effect
  for that purpose.
         SECTION 52.  Section 11.145, Tax Code, as amended by this
  Act, applies only to ad valorem taxes imposed for a tax year
  beginning on or after January 1, 2018.
         SECTION 53.  Section 25.19(b-3), Tax Code, as added by this
  Act, applies only to a notice of appraised value for a tax year
  beginning on or after January 1, 2019. A notice of appraised value
  for a tax year beginning before January 1, 2019, is governed by the
  law in effect immediately before that date, and that law is
  continued in effect for that purpose.
         SECTION 54.  Section 41.03(a), Tax Code, as amended by this
  Act, applies only to a challenge under Chapter 41, Tax Code, for
  which a challenge petition is filed on or after January 1, 2018. A
  challenge under Chapter 41, Tax Code, for which a challenge
  petition was filed before January 1, 2018, is governed by the law in
  effect on the date the challenge petition was filed, and the former
  law is continued in effect for that purpose.
         SECTION 55.  Sections 41.45 and 41.66, Tax Code, as amended
  by this Act, apply only to a protest filed under Chapter 41, Tax
  Code, on or after January 1, 2019. A protest filed under that
  chapter before January 1, 2019, is governed by the law in effect on
  the date the protest was filed, and the former law is continued in
  effect for that purpose.
         SECTION 56.  Section 41.71, Tax Code, as amended by this Act,
  applies only to a hearing on a protest under Chapter 41, Tax Code,
  that is scheduled on or after January 1, 2018. A hearing on a
  protest under Chapter 41, Tax Code, that is scheduled before
  January 1, 2018, is governed by the law in effect on the date the
  hearing was scheduled, and that law is continued in effect for that
  purpose.
         SECTION 57.  Sections 41A.01, 41A.03, and 41A.06, Tax Code,
  as amended by this Act, apply only to a request for binding
  arbitration under Chapter 41A, Tax Code, that is filed on or after
  January 1, 2018.  A request for binding arbitration under Chapter
  41A, Tax Code, that is filed before January 1, 2018, is governed by
  the law in effect on the date the request is filed, and the former
  law is continued in effect for that purpose.
         SECTION 58.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect January 1, 2018.
         (b)  The following provisions take effect September 1, 2018:
               (1)  Sections 6.41(b) and (d-9), Tax Code, as amended
  by this Act;
               (2)  Sections 6.41(b-1), (b-2), and (d-10), Tax Code,
  as added by this Act;
               (3)  Section 6.414(d), Tax Code, as amended by this
  Act;
               (4)  Section 6.425, Tax Code, as added by this Act;
               (5)  Section 25.19(b-3), Tax Code, as added by this
  Act;
               (6)  Section 41.44(d), Tax Code, as amended by this
  Act;
               (7)  Section 41.45(d), Tax Code, as amended by this
  Act;
               (8)  Sections 41.45(d-1), (d-2), and (d-3), Tax Code,
  as added by this Act;
               (9)  Section 41.66(k), Tax Code, as amended by this
  Act; and
               (10)  Section 41.66(k-1), Tax Code, as added by this
  Act.
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