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


Bill Title: Relating to ad valorem taxation.

Spectrum: Partisan Bill (Republican 14-0)

Status: (Engrossed) 2017-03-22 - Received from the Senate [SB2 Detail]

Download: Texas-2017-SB2-Engrossed.html
 
 
  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 Section
  5.01 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 may make recommendations to the
  comptroller regarding improving the effectiveness and efficiency
  of the property tax system, best practices, and complaint
  resolution procedures.
         (b)  The advisory board is composed of at least six members
  appointed by the comptroller. The members of the board should
  include:
               (1)  representatives of property tax payers, appraisal
  districts, and school districts; and
               (2)  a person who has knowledge or experience in
  conducting ratio studies.
         (c)  The members of the advisory board serve at the pleasure
  of the comptroller.
         (d)  Any advice to the comptroller relating to a matter
  described by Subsection (a) that is provided by a member of the
  advisory board must be provided at a meeting called by the
  comptroller.
         (e)  Chapter 2110, Government Code, does not apply to the
  advisory board.
         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 6.035(a-1), Tax Code, is amended to read
  as follows:
         (a-1)  An individual is ineligible to serve on an appraisal
  district board of directors if the individual has engaged in the
  business of appraising property for compensation for use in
  proceedings under this title or of representing property owners for
  compensation in proceedings under this title in the appraisal
  district at any time during the preceding three [five] years.
         SECTION 7.  Section 6.15, Tax Code, is amended by adding
  Subsection (c-1) to read as follows:
         (c-1)  Subsections (a) and (b) do not prohibit a member of
  the board of directors of an appraisal district from transmitting
  to the chief appraiser without comment a complaint by a property
  owner or taxing unit about the appraisal of a specific property,
  provided that the transmission is in writing.
         SECTION 8.  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 9.  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 10.  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 11.  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;
               (7)  have at least 20 years of experience in property
  tax appraisal or consulting; or
               (8)  be licensed as a real estate broker or sales agent
  under Chapter 1101, Occupations Code.
         (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
  holds a bachelor's degree in any field.
         SECTION 12.  Section 11.4391(a), Tax Code, is amended to
  read as follows:
         (a)  The chief appraiser shall accept and approve or deny an
  application for an exemption for freeport goods under Section
  11.251 after the deadline for filing it has passed if it is filed
  not later than June 1 [before the date the appraisal review board
  approves the appraisal records].
         SECTION 13.  Section 21.09(b), Tax Code, is amended to read
  as follows:
         (b)  A person claiming an allocation must apply for the
  allocation each year the person claims the allocation. A person
  claiming an allocation must file a completed allocation application
  form before April [May] 1 and must provide the information required
  by the form.  If the property was not on the appraisal roll in the
  preceding year, the deadline for filing the allocation application
  form is extended to the 30th [45th] day after the date of receipt of
  the notice of appraised value required by Section 25.19(a)(3). For
  good cause shown, the chief appraiser shall extend the deadline for
  filing an allocation application form by written order for a period
  not to exceed 30 [60] days.
         SECTION 14.  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 April 1 [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 a date not later than May 1 [15]. The chief
  appraiser may further extend the deadline an additional 15 days
  upon good cause shown in writing by the property owner.
         (c)  Notwithstanding any other provision of this section,
  rendition statements and property reports for property regulated by
  the Public Utility Commission of Texas, the Railroad Commission of
  Texas, the federal Surface Transportation Board, or the Federal
  Energy Regulatory Commission must be delivered to the chief
  appraiser not later than April 30, except as provided by Section
  22.02.  The chief appraiser may extend the filing deadline 15 days
  for good cause on written request by the property owner.
         SECTION 15.  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 16.  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 17.  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 18.  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 19.  Section 26.012(9), Tax Code, is redesignated as
  Section 26.012(18), Tax Code, and amended to read as follows:
               (18)  "No-new-taxes [(9)  "Effective] maintenance and
  operations rate" means a rate expressed in dollars per $100 of
  taxable value and calculated according to the following formula:
  NO-NEW-TAXES [EFFECTIVE] MAINTENANCE AND OPERATIONS
  RATE = (LAST YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST
  YEAR'S JUNIOR COLLEGE LEVY) / (CURRENT TOTAL VALUE -
  NEW PROPERTY VALUE)
         SECTION 20.  The heading to Section 26.04, Tax Code, is
  amended to read as follows:
         Sec. 26.04.  SUBMISSION OF ROLL TO GOVERNING BODY;
  NO-NEW-TAXES [EFFECTIVE] AND ROLLBACK TAX RATES.
         SECTION 21.  Section 26.04, Tax Code, is amended by amending
  Subsections (b), (c), (d), (e), (e-1), (f), (i), and (j) and adding
  Subsections (c-1), (d-1), (d-2), (d-3), and (h-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 anticipated 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 no-new-taxes [effective] tax rate and the
  rollback tax rate for the unit, where:
               (1)  "No-new-taxes ["Effective] tax rate" means a rate
  expressed in dollars per $100 of taxable value calculated according
  to the following formula:
         NO-NEW-TAXES [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 = (NO-NEW-TAXES [EFFECTIVE]
  MAINTENANCE AND OPERATIONS RATE x 1.05 [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 "1.05" 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.
         (d)  The no-new-taxes [effective] tax rate for a county is
  the sum of the no-new-taxes [effective] tax rates calculated for
  each type of tax the county levies, and the rollback tax rate for a
  county is the sum of the rollback tax rates calculated for each type
  of tax the county levies.
         (d-1)  As soon as practicable after the designated officer or
  employee calculates the no-new-taxes tax rate and the rollback tax
  rate for the taxing unit, the designated officer or employee shall
  submit the worksheets used in calculating the rates to the county
  assessor-collector for each county in which the unit is located.
  The county assessor-collector or an employee designated by the
  county assessor-collector shall determine whether the values used
  in the calculation of those tax rates are the same as the values
  shown in the unit's appraisal roll and the tax rates have otherwise
  been calculated correctly. If the county assessor-collector or
  designated employee makes such a determination, the county
  assessor-collector shall:
               (1)  execute a written certification to that effect,
  attach the certification to each worksheet, and submit the
  worksheets to the governing body of the unit; and
               (2)  notify the unit's designated officer or employee
  of the submission of the worksheets with the attached
  certifications to the governing body.
         (d-2)  The designated officer or employee of the taxing unit
  may not submit the no-new-taxes tax rate and the rollback tax rate
  to the governing body of the unit and the governing body of the unit
  may not adopt a tax rate until the county assessor-collector for
  each county in which the unit is located submits to the governing
  body of the unit the worksheets used to calculate each tax rate with
  the certification described by Subsection (d-1) attached.
         (d-3)  The comptroller shall adopt rules governing the form
  of the certification described by Subsection (d-1) and the manner
  in which the worksheets with the attached certifications are
  required to be submitted to the governing body of the taxing unit.
         (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 no-new-taxes [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 no-new-taxes [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 tax 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 tax rate as required by
  Subsection (j) for the 12 months preceding the month in which the
  calculations required by this chapter are made; and
                     (B)  the amount published by the unit in the
  preceding tax year under Subdivision (6)(B).
         (e-1)  The tax rate certification requirements imposed by
  Subsections (d-1) and (d-2) and the notice requirements imposed by
  Subsections (e)(1)-(6) do not apply to a school district.
         (f)  If as a result of consolidation of taxing units a taxing
  unit includes territory that was in two or more taxing units in the
  preceding year, the amount of taxes imposed in each in the preceding
  year is combined for purposes of calculating the no-new-taxes
  [effective] and rollback tax rates under this section.
         (h-1)  Notwithstanding Subsection (h), the assessor may not
  certify an anticipated collection rate under Subsection (b) that is
  lower than the lowest actual collection rate in the preceding three
  years.
         (i)  This subsection applies to a taxing unit that has agreed
  by written contract to transfer a distinct department, function, or
  activity to another taxing unit and discontinues operating that
  distinct department, function, or activity if the operation of that
  department, function, or activity in all or a majority of the
  territory of the taxing unit is continued by another existing
  taxing unit or by a new taxing unit. The rollback tax rate of a
  taxing unit to which this subsection applies in the first tax year
  in which a budget is adopted that does not allocate revenue to the
  discontinued department, function, or activity is calculated as
  otherwise provided by this section, except that last year's levy
  used to calculate the no-new-taxes [effective] maintenance and
  operations rate of the unit is reduced by the amount of maintenance
  and operations tax revenue spent by the taxing unit to operate the
  department, function, or activity for the 12 months preceding the
  month in which the calculations required by this chapter are made
  and in which the unit operated the discontinued department,
  function, or activity. If the unit did not operate that department,
  function, or activity for the full 12 months preceding the month in
  which the calculations required by this chapter are made, the unit
  shall reduce last year's levy used for calculating the no-new-taxes
  [effective] maintenance and operations rate of the unit by the
  amount of the revenue spent in the last full fiscal year in which
  the unit operated the discontinued department, function, or
  activity.
         (j)  This subsection applies to a taxing unit that had agreed
  by written contract to accept the transfer of a distinct
  department, function, or activity from another taxing unit and
  operates a distinct department, function, or activity if the
  operation of a substantially similar department, function, or
  activity in all or a majority of the territory of the taxing unit
  has been discontinued by another taxing unit, including a dissolved
  taxing unit. The rollback tax rate of a taxing unit to which this
  subsection applies in the first tax year after the other taxing unit
  discontinued the substantially similar department, function, or
  activity in which a budget is adopted that allocates revenue to the
  department, function, or activity is calculated as otherwise
  provided by this section, except that last year's levy used to
  calculate the no-new-taxes [effective] maintenance and operations
  rate of the unit is increased by the amount of maintenance and
  operations tax revenue spent by the taxing unit that discontinued
  operating the substantially similar department, function, or
  activity to operate that department, function, or activity for the
  12 months preceding the month in which the calculations required by
  this chapter are made and in which the unit operated the
  discontinued department, function, or activity. If the unit did
  not operate the discontinued department, function, or activity for
  the full 12 months preceding the month in which the calculations
  required by this chapter are made, the unit may increase last year's
  levy used to calculate the no-new-taxes [effective] maintenance and
  operations rate by an amount not to exceed the amount of property
  tax revenue spent by the discontinuing unit to operate the
  discontinued department, function, or activity in the last full
  fiscal year in which the discontinuing unit operated the
  department, function, or activity.
         SECTION 22.  Section 26.041, Tax Code, is amended by
  amending Subsections (a), (b), (c), (e), (g), and (h) 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 no-new-taxes [effective] tax
  rate and rollback tax rate for the unit are calculated according to
  the following formulas:
         NO-NEW-TAXES [EFFECTIVE] TAX RATE = [(LAST YEAR'S LEVY
  - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
  PROPERTY VALUE)] - SALES TAX GAIN RATE
  and
         ROLLBACK TAX RATE = (NO-NEW-TAXES [EFFECTIVE]
  MAINTENANCE AND OPERATIONS RATE x 1.05 [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 1.05 [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 no-new-taxes [effective] tax rate and rollback tax
  rate for the unit are calculated according to the following
  formulas:
         NO-NEW-TAXES [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 1.05 [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 "1.05" 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)  If a city that imposes an additional sales and use tax
  receives payments under the terms of a contract executed before
  January 1, 1986, in which the city agrees not to annex certain
  property or a certain area and the owners or lessees of the property
  or of property in the area agree to pay at least annually to the city
  an amount determined by reference to all or a percentage of the
  property tax rate of the city and all or a part of the value of the
  property subject to the agreement or included in the area subject to
  the agreement, the governing body, by order adopted by a majority
  vote of the governing body, may direct the designated officer or
  employee to add to the no-new-taxes [effective] and rollback tax
  rates the amount that, when applied to the total taxable value
  submitted to the governing body, would produce an amount of taxes
  equal to the difference between the total amount of payments for the
  tax year under contracts described by this subsection under the
  rollback tax rate calculated under this section and the total
  amount of payments for the tax year that would have been obligated
  to the city if the city had not adopted an additional sales and use
  tax.
         (g)  If the rate of the additional sales and use tax is
  increased, the designated officer or employee shall make two
  projections, in the manner provided by Subsection (d) [of this
  section], of the revenue generated by the additional sales and use
  tax in the following year. The first projection must take into
  account the increase and the second projection must not take into
  account the increase. The officer or employee shall then subtract
  the amount of the result of the second projection from the amount of
  the result of the first projection to determine the revenue
  generated as a result of the increase in the additional sales and
  use tax. In the first year in which an additional sales and use tax
  is increased, the no-new-taxes [effective] tax rate for the unit is
  the no-new-taxes [effective] tax rate before the increase minus a
  number the numerator of which is the revenue generated as a result
  of the increase in the additional sales and use tax, as determined
  under this subsection, and the denominator of which is the current
  total value minus the new property value.
         (h)  If the rate of the additional sales and use tax is
  decreased, the designated officer or employee shall make two
  projections, in the manner provided by Subsection (d) [of this
  section], of the revenue generated by the additional sales and use
  tax in the following year. The first projection must take into
  account the decrease and the second projection must not take into
  account the decrease. The officer or employee shall then subtract
  the amount of the result of the first projection from the amount of
  the result of the second projection to determine the revenue lost as
  a result of the decrease in the additional sales and use tax. In the
  first year in which an additional sales and use tax is decreased,
  the no-new-taxes [effective] tax rate for the unit is the
  no-new-taxes [effective] tax rate before the decrease plus a number
  the numerator of which is the revenue lost as a result of the
  decrease in the additional sales and use tax, as determined under
  this subsection, and the denominator of which is the current total
  value minus the new property value.
         SECTION 23.  The heading to Section 26.043, Tax Code, is
  amended to read as follows:
         Sec. 26.043.  ROLLBACK AND NO-NEW-TAXES [EFFECTIVE] TAX
  RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
         SECTION 24.  Sections 26.043(a) and (b), Tax Code, are
  amended to read as follows:
         (a)  In the tax year in which a city has set an election on
  the question of whether to impose a local sales and use tax under
  Subchapter H, Chapter 453, Transportation Code, the officer or
  employee designated to make the calculations provided by Section
  26.04 may not make those calculations until the outcome of the
  election is determined. If the election is determined in favor of
  the imposition of the tax, the representative shall subtract from
  the city's rollback and no-new-taxes [effective] tax rates the
  amount that, if applied to the city's current total value, would
  impose an amount equal to the amount of property taxes budgeted in
  the current tax year to pay for expenses related to mass transit
  services.
         (b)  In a tax year to which this section applies, a reference
  in this chapter to the city's no-new-taxes [effective] or rollback
  tax rate refers to that rate as adjusted under this section.
         SECTION 25.  The heading to Section 26.044, Tax Code, is
  amended to read as follows:
         Sec. 26.044.  NO-NEW-TAXES [EFFECTIVE] TAX RATE TO PAY FOR
  STATE CRIMINAL JUSTICE MANDATE.
         SECTION 26.  Sections 26.044(a), (b), and (c), Tax Code, are
  amended to read as follows:
         (a)  The first time that a county adopts a tax rate after
  September 1, 1991, in which the state criminal justice mandate
  applies to the county, the no-new-taxes [effective] maintenance and
  operation rate for the county is increased by the rate calculated
  according to the following formula:
         (State Criminal Justice Mandate) / (Current Total
  Value - New Property Value)
         (b)  In the second and subsequent years that a county adopts
  a tax rate, if the amount spent by the county for the state criminal
  justice mandate increased over the previous year, the no-new-taxes
  [effective] maintenance and operation rate for the county is
  increased by the rate calculated according to the following
  formula:
         (This Year's State Criminal Justice Mandate - Previous
  Year's State Criminal Justice Mandate) / (Current
  Total Value - New Property Value)
         (c)  The county shall include a notice of the increase in the
  no-new-taxes [effective] maintenance and operation rate provided
  by this section, including a description and amount of the state
  criminal justice mandate, in the information published under
  Section 26.04(e) and Section 26.06(b) [of this code].
         SECTION 27.  Sections 26.0441(a), (b), and (c), Tax Code,
  are amended to read as follows:
         (a)  In the first tax year in which a taxing unit adopts a tax
  rate after January 1, 2000, and in which the enhanced minimum
  eligibility standards for indigent health care established under
  Section 61.006, Health and Safety Code, apply to the taxing unit,
  the no-new-taxes [effective] maintenance and operations rate for
  the taxing unit is increased by the rate computed according to the
  following formula:
         Amount of Increase = Enhanced Indigent Health Care
  Expenditures / (Current Total Value - New Property
  Value)
         (b)  In each subsequent tax year, if the taxing unit's
  enhanced indigent health care expenses exceed the amount of those
  expenses for the preceding year, the no-new-taxes [effective]
  maintenance and operations rate for the taxing unit is increased by
  the rate computed according to the following formula:
         Amount of Increase = (Current Tax Year's Enhanced
  Indigent Health Care Expenditures - Preceding Tax
  Year's Indigent Health Care Expenditures) / (Current
  Total Value - New Property Value)
         (c)  The taxing unit shall include a notice of the increase
  in its no-new-taxes [effective] maintenance and operations rate
  provided by this section, including a brief description and the
  amount of the enhanced indigent health care expenditures, in the
  information published under Section 26.04(e) and, if applicable,
  Section 26.06(b).
         SECTION 28.  Section 26.05, Tax Code, is amended by amending
  Subsections (a), (b), (c), (d), and (g) and adding Subsection (e-1)
  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.
         (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 vote on
  the ordinance, resolution, or order setting a tax rate that exceeds
  the no-new-taxes [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 no-new-taxes [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 no-new-taxes [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 no-new-taxes [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 no-new-taxes
  [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 NO-NEW-TAXES
  [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 no-new-taxes
  [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 NO-NEW-TAXES
  [EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
  TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
  APPROXIMATELY $(Insert amount)."
         (c)  If the governing body of a taxing unit does not adopt a
  tax rate before the date required by Subsection (a), the tax rate
  for the taxing unit for that tax year is the lower of the
  no-new-taxes [effective] tax rate calculated for that tax year or
  the tax rate adopted by the taxing unit for the preceding tax year.
  A tax rate established by this subsection is treated as an adopted
  tax rate. Before the fifth day after the establishment of a tax
  rate by this subsection, the governing body of the taxing unit must
  ratify the applicable tax rate in the manner required by Subsection
  (b).
         (d)  The governing body of a taxing unit other than a school
  district may not adopt a tax rate that exceeds the lower of the
  rollback tax rate or the no-new-taxes [effective] tax rate
  calculated as provided by this chapter until the governing body has
  held two public hearings on the proposed tax rate and has otherwise
  complied with Section 26.06 and Section 26.065.  The governing body
  of a taxing unit shall reduce a tax rate set by law or by vote of the
  electorate to the lower of the rollback tax rate or the no-new-taxes
  [effective] tax rate and may not adopt a higher rate unless it first
  complies with Section 26.06.
         (e-1)  The governing body of a taxing unit that imposes an
  additional sales and use tax may not adopt the component of the tax
  rate of the unit described by Subsection (a)(1) of this section
  until the chief financial officer or the auditor for the unit
  submits to the governing body of the unit a written certification
  that the amount of additional sales and use tax revenue that will be
  used to pay debt service has been deducted from the total amount
  published under Section 26.04(e)(3)(C) as required by Subsection
  (a)(1) of this section. The comptroller shall adopt rules
  governing the form of the certification required by this subsection
  and the manner in which it is required to be submitted.
         (g)  Notwithstanding Subsection (a), the governing body of a
  school district that elects to adopt a tax rate before the adoption
  of a budget for the fiscal year that begins in the current tax year
  may adopt a tax rate for the current tax year before receipt of the
  certified appraisal roll for the school district if the chief
  appraiser of the appraisal district in which the school district
  participates has certified to the assessor for the school district
  an estimate of the taxable value of property in the school district
  as provided by Section 26.01(e).  If a school district adopts a tax
  rate under this subsection, the no-new-taxes [effective] tax rate
  and the rollback tax rate of the district shall be calculated based
  on the certified estimate of taxable value.
         SECTION 29.  Section 26.052(e), Tax Code, is amended to read
  as follows:
         (e)  Public notice provided under Subsection (c) must
  specify:
               (1)  the tax rate that the governing body proposes to
  adopt;
               (2)  the date, time, and location of the meeting of the
  governing body of the taxing unit at which the governing body will
  consider adopting the proposed tax rate; and
               (3)  if the proposed tax rate for the taxing unit
  exceeds the unit's no-new-taxes [effective] tax rate calculated as
  provided by Section 26.04, a statement substantially identical to
  the following: "The proposed tax rate is a tax increase and would
  increase total taxes in (name of taxing unit) by (percentage by
  which the proposed tax rate exceeds the no-new-taxes [effective]
  tax rate)."
         SECTION 30.  Section 26.06, Tax Code, is amended by amending
  Subsections (b), (d), and (e) and adding Subsections (b-1), (b-2),
  (b-3), and (b-4) to read as follows:
         (b)  The notice of a public hearing may not be smaller than
  one-quarter page of a standard-size or a tabloid-size newspaper,
  and the headline on the notice must be in 24-point or larger type.  
  [The notice must contain a statement in the following form:
  ["NOTICE OF PUBLIC HEARING ON TAX INCREASE
         ["The (name of the taxing unit) will hold two public hearings
  on a proposal to increase total tax revenues from properties on the
  tax roll in the preceding tax year by (percentage by which proposed
  tax rate exceeds lower of rollback tax rate or effective tax rate
  calculated under this chapter) percent.     Your individual taxes may
  increase at a greater or lesser rate, or even decrease, depending on
  the change in the taxable value of your property in relation to the
  change in taxable value of all other property and the tax rate that
  is adopted.
         ["The first public hearing will be held on (date and time) at
  (meeting place).
         ["The second public hearing will be held on (date and time) at
  (meeting place).
         ["(Names of all members of the governing body, showing how
  each voted on the proposal to consider the tax increase or, if one
  or more were absent, indicating the absences.)
         ["The average taxable value of a residence homestead in (name
  of taxing unit) last year was $____ (average taxable value of a
  residence homestead in the taxing unit for the preceding tax year,
  disregarding residence homestead exemptions available only to
  disabled persons or persons 65 years of age or older).   Based on
  last year's tax rate of $____ (preceding year's adopted tax rate)
  per $100 of taxable value, the amount of taxes imposed last year on
  the average home was $____ (tax on average taxable value of a
  residence homestead in the taxing unit for the preceding tax year,
  disregarding residence homestead exemptions available only to
  disabled persons or persons 65 years of age or older).
         ["The average taxable value of a residence homestead in (name
  of taxing unit) this year is $____ (average taxable value of a
  residence homestead in the taxing unit for the current tax year,
  disregarding residence homestead exemptions available only to
  disabled persons or persons 65 years of age or older).   If the
  governing body adopts the effective tax rate for this year of $____
  (effective tax rate) per $100 of taxable value, the amount of taxes
  imposed this year on the average home would be $____ (tax on average
  taxable value of a residence homestead in the taxing unit for the
  current tax year, disregarding residence homestead exemptions
  available only to disabled persons or persons 65 years of age or
  older).
         ["If the governing body adopts the proposed tax rate of $____
  (proposed tax rate) per $100 of taxable value, the amount of taxes
  imposed this year on the average home would be $____ (tax on the
  average taxable value of a residence in the taxing unit for the
  current year disregarding residence homestead exemptions available
  only to disabled persons or persons 65 years of age or older).
         ["Members of the public are encouraged to attend the hearings
  and express their views."]
         (b-1)  If the proposed tax rate exceeds the no-new-taxes tax
  rate and the rollback tax rate of the taxing unit, the notice must
  contain a statement in the following form:
  "NOTICE OF PUBLIC HEARING ON TAX INCREASE
         "PROPOSED TAX RATE      $__________per $100
         "NO-NEW-TAXES RATE      $__________per $100
         "ROLLBACK TAX RATE      $__________per $100
         "The no-new-taxes rate is the tax rate for the (current tax
  year) tax year that will raise the same amount of property tax
  revenue for (name of taxing unit) from the same properties in both
  the (preceding tax year) tax year and the (current tax year) tax
  year.
         "The rollback tax rate is the highest tax rate that (name of
  taxing unit) may adopt without holding an election to ratify the
  rate.
         "The proposed tax rate is greater than the no-new-taxes rate.
  This means that (name of taxing unit) is proposing to increase
  property taxes for the (current tax year) tax year.
         "A public hearing on the proposed tax rate will be held on
  (date and time) at (meeting place).
         "A second public hearing will be held on (date and time) at
  (meeting place).
         "The proposed tax rate is also greater than the rollback tax
  rate. If (name of taxing unit) adopts the proposed tax rate, (name
  of taxing unit) is required to hold an election so that voters may
  accept or reject the proposed tax rate. If a majority of voters
  reject the proposed tax rate, the (name of taxing unit) will be
  required to adopt a new tax rate that is not greater than the
  rollback tax rate. The election will be held on (date of election).
  You may contact the (name of office responsible for administering
  the election) for information about voting locations.  The hours of
  voting on election day are (voting hours).
         "Your taxes owed under any of the tax rates mentioned above
  can be calculated as follows:
         "Property tax amount = tax rate x taxable value of your
  property / 100
         "(Names of all members of the governing body, showing how
  each voted on the proposal to consider the tax increase or, if one
  or more were absent, indicating the absences.)"
         (b-2)  If the proposed tax rate exceeds the no-new-taxes tax
  rate but does not exceed the rollback tax rate of the taxing unit,
  the notice must contain a statement in the following form:
  "NOTICE OF PUBLIC HEARING ON TAX INCREASE
         "PROPOSED TAX RATE      $__________per $100
         "NO-NEW-TAXES RATE      $__________per $100
         "ROLLBACK TAX RATE      $__________per $100
         "The no-new-taxes rate is the tax rate for the (current tax
  year) tax year that will raise the same amount of property tax
  revenue for (name of taxing unit) from the same properties in both
  the (preceding tax year) tax year and the (current tax year) tax
  year.
         "The rollback tax rate is the highest tax rate that (name of
  taxing unit) may adopt without holding an election to ratify the
  rate.
         "The proposed tax rate is greater than the no-new-taxes rate.
  This means that (name of taxing unit) is proposing to increase
  property taxes for the (current tax year) tax year.
         "A public hearing on the proposed tax rate will be held on
  (date and time) at (meeting place).
         "A second public hearing will be held on (date and time) at
  (meeting place).
         "The proposed tax rate is not greater than the rollback tax
  rate. As a result, (name of taxing unit) is not required to hold an
  election at which voters may accept or reject the proposed tax rate.  
  However, you may express your support for or opposition to the
  proposed tax rate by contacting the members of the (name of
  governing body) of (name of taxing unit) at their offices or by
  attending one of the public hearings mentioned above.
         "Your taxes owed under any of the tax rates mentioned above
  can be calculated as follows:
         "Property tax amount = tax rate x taxable value of your
  property / 100
         "(Names of all members of the governing body, showing how
  each voted on the proposal to consider the tax increase or, if one
  or more were absent, indicating the absences.)"
         (b-3)  If the proposed tax rate does not exceed the
  no-new-taxes tax rate but exceeds the rollback tax rate of the
  taxing unit, the notice must contain a statement in the following
  form:
  "NOTICE OF PUBLIC HEARING ON TAX INCREASE
         "PROPOSED TAX RATE      $__________per $100
         "NO-NEW-TAXES RATE      $__________per $100
         "ROLLBACK TAX RATE      $__________per $100
         "The no-new-taxes rate is the tax rate for the (current tax
  year) tax year that will raise the same amount of property tax
  revenue for (name of taxing unit) from the same properties in both
  the (preceding tax year) tax year and the (current tax year) tax
  year.
         "The rollback tax rate is the highest tax rate that (name of
  taxing unit) may adopt without holding an election to ratify the
  rate.
         "The proposed tax rate is not greater than the no-new-taxes
  rate. This means that (name of taxing unit) is not proposing to
  increase property taxes for the (current tax year) tax year.
         "A public hearing on the proposed tax rate will be held on
  (date and time) at (meeting place).
         "A second public hearing will be held on (date and time) at
  (meeting place).
         "The proposed tax rate is greater than the rollback tax rate.
  If (name of taxing unit) adopts the proposed tax rate, (name of
  taxing unit) is required to hold an election so that voters may
  accept or reject the proposed tax rate. If a majority of voters
  reject the proposed tax rate, the (name of taxing unit) will be
  required to adopt a new tax rate that is not greater than the
  rollback tax rate. The election will be held on (date of election).
  You may contact the (name of office responsible for administering
  the election) for information about voting locations.  The hours of
  voting on election day are (voting hours).
         "Your taxes owed under any of the tax rates mentioned above
  can be calculated as follows:
         "Property tax amount = tax rate x taxable value of your
  property / 100
         "(Names of all members of the governing body, showing how
  each voted on the proposal to consider the tax increase or, if one
  or more were absent, indicating the absences.)"
         (b-4)  In addition to including the information described by
  Subsection (b-1), (b-2), or (b-3), as applicable, the notice must
  include the information described by Section 26.062.
         (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
  no-new-taxes [effective tax] rate calculated under this chapter)
  percent.
         "The total tax revenue proposed to be raised last year at last
  year's tax rate of (insert tax rate for the preceding year) for each
  $100 of taxable value was (insert total amount of taxes imposed in
  the preceding year).
         "The total tax revenue proposed to be raised this year at the
  proposed tax rate of (insert proposed tax rate) for each $100 of
  taxable value, excluding tax revenue to be raised from new property
  added to the tax roll this year, is (insert amount computed by
  multiplying proposed tax rate by the difference between current
  total value and new property value).
         "The total tax revenue proposed to be raised this year at the
  proposed tax rate of (insert proposed tax rate) for each $100 of
  taxable value, including tax revenue to be raised from new property
  added to the tax roll this year, is (insert amount computed by
  multiplying proposed tax rate by current total value).
         "The (governing body of the taxing unit) is scheduled to vote
  on the tax rate that will result in that tax increase at a public
  meeting to be held on (date of meeting) at (location of meeting,
  including mailing address) at (time of meeting).
         "The (governing body of the taxing unit) proposes to use the
  increase in total tax revenue for the purpose of (description of
  purpose of increase)."
         (e)  The meeting to vote on the tax increase may not be
  earlier than the third day or later than the 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 no-new-taxes 
  [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 no-new-taxes [effective]
  tax rate.
         SECTION 31.  Chapter 26, Tax Code, is amended by adding
  Sections 26.061 and 26.062 to read as follows:
         Sec. 26.061.  NOTICE OF MEETING TO VOTE ON PROPOSED TAX RATE
  THAT DOES NOT EXCEED LOWER OF NO-NEW-TAXES OR ROLLBACK TAX RATE.
  (a)  This section applies only to the governing body of a taxing
  unit other than a school district that proposes to adopt a tax rate
  that does not exceed the lower of the no-new-taxes tax rate or the
  rollback tax rate calculated as provided by this chapter.
         (b)  The notice of the meeting at which the governing body of
  the taxing unit will vote on the proposed tax rate must contain a
  statement in the following form:
  "NOTICE OF MEETING TO VOTE ON TAX RATE
         "PROPOSED TAX RATE      $__________per $100
         "NO-NEW-TAXES RATE      $__________per $100
         "ROLLBACK TAX RATE      $__________per $100
         "The no-new-taxes rate is the tax rate for the (current tax
  year) tax year that will raise the same amount of property tax
  revenue for (name of taxing unit) from the same properties in both
  the (preceding tax year) tax year and the (current tax year) tax
  year.
         "The rollback tax rate is the highest tax rate that (name of
  taxing unit) may adopt without holding an election to ratify the
  rate.
         "The proposed tax rate is not greater than the no-new-taxes
  rate. This means that (name of taxing unit) is not proposing to
  increase property taxes for the (current tax year) tax year.
         "A public meeting to vote on the proposed tax rate will be
  held on (date and time) at (meeting place).
         "The proposed tax rate is also not greater than the rollback
  tax rate. As a result, (name of taxing unit) is not required to hold
  an election at which voters may accept or reject the proposed tax
  rate.  However, you may express your support for or opposition to
  the proposed tax rate by contacting the members of the (name of
  governing body) of (name of taxing unit) at their offices or by
  attending the public meeting mentioned above.
         "Your taxes owed under any of the above rates can be
  calculated as follows:
         "Property tax amount = tax rate x taxable value of your
  property / 100
         "(Names of all members of the governing body, showing how
  each voted on the proposed tax rate or, if one or more were absent,
  indicating the absences.)"
         (c)  In addition to including the information described by
  Subsection (b), the notice must include the information described
  by Section 26.062.
         Sec. 26.062.  ADDITIONAL INFORMATION TO BE INCLUDED IN TAX
  RATE NOTICE. (a)  In addition to the information described by
  Section 26.06(b-1), (b-2), or (b-3) or 26.061, as applicable, a
  notice required by that provision must include at the end of the
  notice:
               (1)  a statement in the following form:
         "The following table compares the taxes imposed on the
  average residence homestead by (name of taxing unit) last year to
  the taxes proposed to be imposed on the average residence homestead
  by (name of taxing unit) this year:";
               (2)  a table in the form required by this section
  following the statement described by Subdivision (1); and
               (3)  a statement in the following form following the
  table:
                     (A)  if the tax assessor for the taxing unit
  maintains an Internet website:  "For assistance with tax
  calculations, please contact the tax assessor for (name of taxing
  unit) at (telephone number) or (e-mail address), or visit (Internet
  website address) for more information."; or
                     (B)  if the tax assessor for the taxing unit does
  not maintain an Internet website:  "For assistance with tax
  calculations, please contact the tax assessor for (name of taxing
  unit) at (telephone number) or (e-mail address)."
         (b)  The table must contain five rows and four columns.
         (c)  The first row must appear as follows:
               (1)  the first column of the first row must be left
  blank;
               (2)  the second column of the first row must state the
  year corresponding to the preceding tax year;
               (3)  the third column of the first row must state the
  year corresponding to the current tax year; and
               (4)  the fourth column of the first row must be entitled
  "Change".
         (d)  The second row must appear as follows:
               (1)  the first column of the second row must be entitled
  "Total tax rate (per $100 of value)";
               (2)  the second column of the second row must state the
  adopted tax rate for the preceding tax year;
               (3)  the third column of the second row must state the
  proposed tax rate for the current tax year; and
               (4)  the fourth column of the second row must state the
  nominal and percentage difference between the adopted tax rate for
  the preceding tax year and the proposed tax rate for the current tax
  year as follows:  "(increase or decrease, as applicable) of
  (nominal difference between tax rate stated in second column of
  second row and tax rate stated in third column of second row) per
  $100, or (percentage difference between tax rate stated in second
  column of second row and tax rate stated in third column of second
  row)%".
         (e)  The third row must appear as follows:
               (1)  the first column of the third row must be entitled
  "Average homestead taxable value";
               (2)  the second column of the third row must state the
  average taxable value of a residence homestead in the taxing unit
  for the preceding tax year;
               (3)  the third column of the third row must state the
  average taxable value of a residence homestead in the taxing unit
  for the current tax year; and
               (4)  the fourth column of the third row must state the
  percentage difference between the average taxable value of a
  residence homestead in the taxing unit for the preceding tax year
  and the average taxable value of a residence homestead in the taxing
  unit for the current tax year as follows:  "(increase or decrease,
  as applicable) of (percentage difference between amount stated in
  second column of third row and amount stated in third column of
  third row)%".
         (f)  The fourth row must appear as follows:
               (1)  the first column of the fourth row must be entitled
  "Tax on average homestead";
               (2)  the second column of the fourth row must state the
  amount of taxes imposed by the taxing unit in the preceding tax year
  on a residence homestead with a taxable value equal to the average
  taxable value of a residence homestead in the taxing unit in the
  preceding tax year;
               (3)  the third column of the fourth row must state the
  amount of taxes that would be imposed by the taxing unit in the
  current tax year on a residence homestead with a taxable value equal
  to the average taxable value of a residence homestead in the taxing
  unit in the current tax year if the taxing unit adopted the proposed
  tax rate; and
               (4)  the fourth column of the fourth row must state the
  nominal and percentage difference between the amount of taxes
  imposed by the taxing unit in the preceding tax year on a residence
  homestead with a taxable value equal to the average taxable value of
  a residence homestead in the taxing unit in the preceding tax year
  and the amount of taxes that would be imposed by the taxing unit in
  the current tax year on a residence homestead with a taxable value
  equal to the average taxable value of a residence homestead in the
  taxing unit in the current tax year if the taxing unit adopted the
  proposed tax rate, as follows:  "(increase or decrease, as
  applicable) of (nominal difference between amount stated in second
  column of fourth row and amount stated in third column of fourth
  row), or (percentage difference between amount stated in second
  column of fourth row and amount stated in third column of fourth
  row)%".
         (g)  The fifth row must appear as follows:
               (1)  the first column of the fifth row must be entitled
  "Total tax levy on all properties";
               (2)  the second column of the fifth row must state the
  amount equal to last year's levy;
               (3)  the third column of the fifth row must state the
  amount computed by multiplying the proposed tax rate by the current
  total value and dividing the product by 100; and
               (4)  the fourth column of the fifth row must state the
  nominal and percentage difference between the total amount of taxes
  imposed by the taxing unit in the preceding tax year and the amount
  that would be imposed by the taxing unit in the current tax year if
  the taxing unit adopted the proposed tax rate, as follows:  
  "(increase or decrease, as applicable) of (nominal difference
  between amount stated in second column of fifth row and amount
  stated in third column of fifth row), or (percentage difference
  between amount stated in second column of fifth row and amount
  stated in third column of fifth row)%".
         (h)  In calculating the average taxable value of a residence
  homestead in the taxing unit for the preceding tax year and the
  current tax year for purposes of Subsections (e) and (f), any
  residence homestead exemption available only to disabled persons,
  persons 65 years of age or older, or their surviving spouses must be
  disregarded.
         SECTION 32.  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 33.  Sections 26.08(a), (b), (d), (d-1), (d-2), (e),
  (g), (h), (n), and (p), 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.
         (g)  In a school district that received distributions from an
  equalization tax imposed under former Chapter 18, Education Code,
  the no-new-taxes tax [effective] rate of that tax as of the date of
  the county unit system's abolition is added to the district's
  rollback tax rate.
         (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.
         (n)  For purposes of this section, the rollback tax rate of a
  school district whose maintenance and operations tax rate for the
  2005 tax year was $1.50 or less per $100 of taxable value is:
               (1)  for the 2006 tax year, the sum of the rate that is
  equal to 88.67 percent of the maintenance and operations tax rate
  adopted by the district for the 2005 tax year, the rate of $0.04 per
  $100 of taxable value, and the district's current debt rate; and
               (2)  for the 2007 and subsequent tax years, the lesser
  of the following:
                     (A)  the sum of the following:
                           (i)  the rate per $100 of taxable value that
  is equal to the product of the state compression percentage, as
  determined under Section 42.2516, Education Code, for the current
  year and $1.50;
                           (ii)  the rate of $0.04 per $100 of taxable
  value;
                           (iii)  the rate that is equal to the sum of
  the differences for the 2006 and each subsequent tax year between
  the adopted tax rate of the district for that year if the rate was
  approved at an election under this section and the rollback tax rate
  of the district for that year; and
                           (iv)  the district's current debt rate; or
                     (B)  the sum of the following:
                           (i)  the no-new-taxes [effective]
  maintenance and operations tax rate of the district as computed
  under Subsection (i) [or (k), as applicable];
                           (ii)  the rate per $100 of taxable value that
  is equal to the product of the state compression percentage, as
  determined under Section 42.2516, Education Code, for the current
  year and $0.06; and
                           (iii)  the district's current debt rate.
         (p)  Notwithstanding Subsections (i), (n), and (o), if for
  the preceding tax year a school district adopted a maintenance and
  operations tax rate that was less than the district's no-new-taxes
  [effective] maintenance and operations tax rate for that preceding
  tax year, the rollback tax rate of the district for the current tax
  year is calculated as if the district adopted a maintenance and
  operations tax rate for the preceding tax year that was equal to the
  district's no-new-taxes [effective] maintenance and operations tax
  rate for that preceding tax year.
         SECTION 34.  Section 26.08(i), Tax Code, as effective
  September 1, 2017, is amended to read as follows:
         (i)  For purposes of this section, the no-new-taxes
  [effective] maintenance and operations tax rate of a school
  district is the tax rate that, applied to the current total value
  for the district, would impose taxes in an amount that, when added
  to state funds that would be distributed to the district under
  Chapter 42, Education Code, for the school year beginning in the
  current tax year using that tax rate, would provide the same amount
  of state funds distributed under Chapter 42, Education Code, and
  maintenance and operations taxes of the district per student in
  weighted average daily attendance for that school year that would
  have been available to the district in the preceding year if the
  funding elements for Chapters 41 and 42, Education Code, for the
  current year had been in effect for the preceding year.
         SECTION 35.  The heading to Section 26.16, Tax Code, is
  amended to read as follows:
         Sec. 26.16.  POSTING OF TAX-RELATED INFORMATION [TAX RATES]
  ON COUNTY'S INTERNET WEBSITE.
         SECTION 36.  Section 26.16, Tax Code, is amended by amending
  Subsections (a) and (d) and adding Subsections (a-1), (d-1), and
  (d-2) to read as follows:
         (a)  Each county shall maintain an Internet website.  The
  county assessor-collector for each county [that maintains an
  Internet website] shall post on the Internet website maintained by 
  [of] the county the following information for the most recent five
  tax years beginning with the 2012 tax year for each taxing unit all
  or part of the territory of which is located in the county:
               (1)  the adopted tax rate;
               (2)  the maintenance and operations rate;
               (3)  the debt rate;
               (4)  the no-new-taxes [effective] tax rate;
               (5)  the no-new-taxes [effective] maintenance and
  operations rate; and
               (6)  the rollback tax rate.
         (a-1)  For purposes of Subsection (a), a reference to the
  no-new-taxes tax rate or the no-new-taxes maintenance and
  operations rate includes the equivalent effective tax rate or
  effective maintenance and operations rate for a preceding year.  
  This subsection expires January 1, 2024.
         (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 no-new-taxes [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 no-new-taxes [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."
         (d-1)  In addition to posting the information described by
  Subsection (a), the county assessor-collector shall post on the
  Internet website of the county for each taxing unit all or part of
  the territory of which is located in the county:
               (1)  the worksheets used by the designated officer or
  employee of each taxing unit to calculate the no-new-taxes and
  rollback tax rates of the unit for the most recent five tax years
  beginning with the 2018 tax year, as certified by the county
  assessor-collector under Section 26.04(d-1); and
               (2)  the name and official contact information for each
  member of the governing body of the taxing unit.
         (d-2)  Not later than August 1, the county
  assessor-collector shall post on the website the worksheets
  described by Subsection (d-1)(1) for the current tax year.
         SECTION 37.  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 38.  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 39.  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 40.  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 41.  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 42.  Sections 41.44(a), (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)  not later than the later of:
                     (A)  [before] May 15; [1] or
                     (B)  [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.
         (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 43.  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 44.  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 45.  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 46.  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 47.  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 48.  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 49.  Section 45.105(e), Education Code, is amended
  to read as follows:
         (e)  The governing body of an independent school district
  that governs a junior college district under Subchapter B, Chapter
  130, in a county with a population of more than two million may
  dedicate a specific percentage of the local tax levy to the use of
  the junior college district for facilities and equipment or for the
  maintenance and operating expenses of the junior college district.
  To be effective, the dedication must be made by the governing body
  on or before the date on which the governing body adopts its tax
  rate for a year. The amount of local tax funds derived from the
  percentage of the local tax levy dedicated to a junior college
  district from a tax levy may not exceed the amount that would be
  levied by five percent of the no-new-taxes [effective] tax rate for
  the tax year calculated as provided by Section 26.04, Tax Code, on
  all property taxable by the school district. All real property
  purchased with these funds is the property of the school district,
  but is subject to the exclusive control of the governing body of the
  junior college district for as long as the junior college district
  uses the property for educational purposes.
         SECTION 50.  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 51.  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 52.  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 53.  Section 102.007(d), Local Government Code, is
  amended to read as follows:
         (d)  An adopted budget must contain a cover page that
  includes:
               (1)  one of the following statements in 18-point or
  larger type that accurately describes the adopted budget:
                     (A)  "This budget will raise more revenue from
  property taxes than last year's budget by an amount of (insert total
  dollar amount of increase), which is a (insert percentage increase)
  percent increase from last year's budget. The property tax revenue
  to be raised from new property added to the tax roll this year is
  (insert amount computed by multiplying the proposed tax rate by the
  value of new property added to the roll).";
                     (B)  "This budget will raise less revenue from
  property taxes than last year's budget by an amount of (insert total
  dollar amount of decrease), which is a (insert percentage decrease)
  percent decrease from last year's budget. The property tax revenue
  to be raised from new property added to the tax roll this year is
  (insert amount computed by multiplying the proposed tax rate by the
  value of new property added to the roll)."; or
                     (C)  "This budget will raise the same amount of
  revenue from property taxes as last year's budget. The property tax
  revenue to be raised from new property added to the tax roll this
  year is (insert amount computed by multiplying the proposed tax
  rate by the value of new property added to the roll).";
               (2)  the record vote of each member of the governing
  body by name voting on the adoption of the budget;
               (3)  the municipal property tax rates for the preceding
  fiscal year, and each municipal property tax rate that has been
  adopted or calculated for the current fiscal year, including:
                     (A)  the property tax rate;
                     (B)  the no-new-taxes [effective] tax rate;
                     (C)  the no-new-taxes [effective] maintenance and
  operations tax rate;
                     (D)  the rollback tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of municipal debt obligations.
         SECTION 54.  Section 111.008(d), Local Government Code, is
  amended to read as follows:
         (d)  An adopted budget must contain a cover page that
  includes:
               (1)  one of the following statements in 18-point or
  larger type that accurately describes the adopted budget:
                     (A)  "This budget will raise more revenue from
  property taxes than last year's budget by an amount of (insert total
  dollar amount of increase), which is a (insert percentage increase)
  percent increase from last year's budget.  The property tax revenue
  to be raised from new property added to the tax roll this year is
  (insert amount computed by multiplying the proposed tax rate by the
  value of new property added to the roll).";
                     (B)  "This budget will raise less revenue from
  property taxes than last year's budget by an amount of (insert total
  dollar amount of decrease), which is a (insert percentage decrease)
  percent decrease from last year's budget.  The property tax revenue
  to be raised from new property added to the tax roll this year is
  (insert amount computed by multiplying the proposed tax rate by the
  value of new property added to the roll)."; or
                     (C)  "This budget will raise the same amount of
  revenue from property taxes as last year's budget.  The property tax
  revenue to be raised from new property added to the tax roll this
  year is (insert amount computed by multiplying the proposed tax
  rate by the value of new property added to the roll).";
               (2)  the record vote of each member of the
  commissioners court by name voting on the adoption of the budget;
               (3)  the county property tax rates for the preceding
  fiscal year, and each county property tax rate that has been adopted
  or calculated for the current fiscal year, including:
                     (A)  the property tax rate;
                     (B)  the no-new-taxes [effective] tax rate;
                     (C)  the no-new-taxes [effective] maintenance and
  operations tax rate;
                     (D)  the rollback tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of county debt obligations.
         SECTION 55.  Section 111.039(d), Local Government Code, is
  amended to read as follows:
         (d)  An adopted budget must contain a cover page that
  includes:
               (1)  one of the following statements in 18-point or
  larger type that accurately describes the adopted budget:
                     (A)  "This budget will raise more revenue from
  property taxes than last year's budget by an amount of (insert total
  dollar amount of increase), which is a (insert percentage increase)
  percent increase from last year's budget.  The property tax revenue
  to be raised from new property added to the tax roll this year is
  (insert amount computed by multiplying the proposed tax rate by the
  value of new property added to the roll).";
                     (B)  "This budget will raise less revenue from
  property taxes than last year's budget by an amount of (insert total
  dollar amount of decrease), which is a (insert percentage decrease)
  percent decrease from last year's budget.  The property tax revenue
  to be raised from new property added to the tax roll this year is
  (insert amount computed by multiplying the proposed tax rate by the
  value of new property added to the roll)."; or
                     (C)  "This budget will raise the same amount of
  revenue from property taxes as last year's budget.  The property tax
  revenue to be raised from new property added to the tax roll this
  year is (insert amount computed by multiplying the proposed tax
  rate by the value of new property added to the roll).";
               (2)  the record vote of each member of the
  commissioners court by name voting on the adoption of the budget;
               (3)  the county property tax rates for the preceding
  fiscal year, and each county property tax rate that has been adopted
  or calculated for the current fiscal year, including:
                     (A)  the property tax rate;
                     (B)  the no-new-taxes [effective] tax rate;
                     (C)  the no-new-taxes [effective] maintenance and
  operations tax rate;
                     (D)  the rollback tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of county debt obligations.
         SECTION 56.  Section 111.068(c), Local Government Code, is
  amended to read as follows:
         (c)  An adopted budget must contain a cover page that
  includes:
               (1)  one of the following statements in 18-point or
  larger type that accurately describes the adopted budget:
                     (A)  "This budget will raise more revenue from
  property taxes than last year's budget by an amount of (insert total
  dollar amount of increase), which is a (insert percentage increase)
  percent increase from last year's budget.  The property tax revenue
  to be raised from new property added to the tax roll this year is
  (insert amount computed by multiplying the proposed tax rate by the
  value of new property added to the roll).";
                     (B)  "This budget will raise less revenue from
  property taxes than last year's budget by an amount of (insert total
  dollar amount of decrease), which is a (insert percentage decrease)
  percent decrease from last year's budget.  The property tax revenue
  to be raised from new property added to the tax roll this year is
  (insert amount computed by multiplying the proposed tax rate by the
  value of new property added to the roll)."; or
                     (C)  "This budget will raise the same amount of
  revenue from property taxes as last year's budget.  The property tax
  revenue to be raised from new property added to the tax roll this
  year is (insert amount computed by multiplying the proposed tax
  rate by the value of new property added to the roll).";
               (2)  the record vote of each member of the
  commissioners court by name voting on the adoption of the budget;
               (3)  the county property tax rates for the preceding
  fiscal year, and each county property tax rate that has been adopted
  or calculated for the current fiscal year, including:
                     (A)  the property tax rate;
                     (B)  the no-new-taxes [effective] tax rate;
                     (C)  the no-new-taxes [effective] maintenance and
  operations tax rate;
                     (D)  the rollback tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of county debt obligations.
         SECTION 57.  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 58.  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, 26.061, 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 59.  Section 49.107(g), Water Code, is amended to
  read as follows:
         (g)  Sections 26.04, 26.05, 26.061, 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 60.  Section 49.108(f), Water Code, is amended to
  read as follows:
         (f)  Sections 26.04, 26.05, 26.061, 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 61.  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
  Subsections (e), (f), (g), (h), (i), (j), (k), and (l) 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 requires or
  authorizes an election in the district to ratify the tax rate, a
  description of the purpose of the proposed tax increase; and
               (3)  contain a statement in substantially the following
  form, as applicable:
                     (A)  if there are not any new improvements in the
  district in the current tax year:
  "NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
         "If taxes on the average residence homestead increase by more
  than five [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.";
  or
                     (B)  if there are any new improvements in the
  district in the current tax year:
  "NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
         "If taxes on the average residence homestead increase by more
  than five percent, the qualified voters of the district by petition
  may require that an election be held to determine whether to ratify
  the tax rate under Section 49.236(e), Water Code."
         (d)  This subsection applies to a district only if there are
  not any new improvements in the district in the current tax year.
  If the board [governing body] of the [a] district adopts a combined
  debt service, operation and maintenance, and contract tax rate that
  would impose more than 1.05 [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-2) [26.07(b)-(g) and 26.081], Tax Code.
         (e)  This subsection and Subsections (f)-(i) apply to a
  district only if there are any new improvements in the district in
  the current tax year. If the board of the district adopts a
  combined debt service, operation and maintenance, and contract tax
  rate that would impose more than 1.05 times the amount of tax
  imposed by the district in the preceding year on a residence
  homestead appraised at the average appraised value of a residence
  homestead in the district in that year, disregarding any homestead
  exemption available only to disabled persons or persons 65 years of
  age or older, the qualified voters of the district by petition may
  require that an election be held to determine whether to ratify the
  tax rate adopted for the current year in accordance with the
  procedures provided by Subsections (f)-(i) of this section and
  Section 26.081, Tax Code.
         (f)  A petition is valid only if:
               (1)  it states that it is intended to require an
  election in the district on the question of ratifying the tax rate
  adopted for the current year;
               (2)  it is signed by a number of registered voters of
  the district equal to at least:
                     (A)  seven percent of the number of registered
  voters of the district according to the most recent official list of
  registered voters if the tax rate adopted for the current tax year
  would impose taxes for operation and maintenance in an amount of at
  least $5 million; or
                     (B)  10 percent of the number of registered voters
  of the district according to the most recent official list of
  registered voters if the tax rate adopted for the current tax year
  would impose taxes for operation and maintenance in an amount of
  less than $5 million; and
               (3)  it is submitted to the board on or before the 90th
  day after the date on which the board adopted the tax rate for the
  current year.
         (g)  Not later than the 20th day after the day a petition is
  submitted, the board shall determine whether or not the petition is
  valid and pass a resolution stating its finding. If the board fails
  to act within the time allowed, the petition is treated as if it had
  been found valid.
         (h)  If the board finds that the petition is valid (or fails
  to act within the time allowed), it shall order that an election be
  held in the district on a date not less than 30 or more than 90 days
  after the last day on which it could have acted to approve or
  disapprove the petition. A state law requiring local elections to
  be held on a specified date does not apply to the election unless a
  specified date falls within the time permitted by this section. At
  the election, the ballots shall be prepared to permit voting for or
  against the proposition: "Approving the ad valorem tax rate of
  $____ per $100 valuation in (name of district) for the current year,
  a rate that is $____ higher per $100 valuation than the district's
  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.
         (i)  Sections 26.08(c), (d), (d-1), and (d-2), Tax Code,
  apply to an election under Subsection (e) of this section in the
  same manner as those subsections apply to an election under Section
  26.08, Tax Code.
         (j)  For purposes of an election under Subsection (d) or (e),
  as applicable [Sections 26.07(b)-(g) and this subsection], the
  rollback tax rate of a district 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 1.05 [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.
         (k)  Notwithstanding any other provision of this section,
  the board may substitute "eight percent" for "five percent" in
  Subsection (a) and "1.08" for "1.05" in Subsection (d) or (e), as
  applicable, and Subsection (j) 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.
         (l)  In this section, "improvement" has the meaning assigned
  by Section 1.04, Tax Code.
         SECTION 62.  The following provisions are repealed:
               (1)  Sections 403.302(m-1) and (n), Government Code;
               (2)  Section 140.010, Local Government Code;
               (3)  Section 1063.255, Special District Local Laws
  Code;
               (4)  Section 26.07, Tax Code;
               (5)  Section 41.44(b-1), Tax Code;
               (6)  Section 49.236, Water Code, as added by Chapter
  248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
  2003; and
               (7)  Section 49.2361, Water Code.
         SECTION 63.  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 64.  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 65.  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 66.  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 67.  Sections 11.4391(a), 21.09(b), and 22.23, Tax
  Code, as amended by this Act, apply only to ad valorem taxes imposed
  for a tax year beginning on or after January 1, 2018.
         SECTION 68.  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 69.  Not later than October 1, 2017:
               (1)  the designated officer or employee of each taxing
  unit shall submit to the county assessor-collector for each county
  in which all or part of the territory of the taxing unit is located
  the worksheets used by the designated officer or employee to
  calculate the effective and rollback tax rates of the unit for the
  2013-2017 tax years; and
               (2)  the county assessor-collector for each county
  shall post the worksheets submitted to the county
  assessor-collector under Subdivision (1) of this section on the
  Internet website of the county.
         SECTION 70.  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 71.  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 72.  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 73.  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 74.  (a)  Except as provided by Subsections (b) and
  (c) of this section, this Act takes effect January 1, 2018.
         (b)  Section 69 of this Act takes effect September 1, 2017.
         (c)  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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