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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the administration of the ad valorem tax system.

Spectrum: Partisan Bill (Republican 15-0)

Status: (Engrossed - Dead) 2017-05-20 - Committee report sent to Calendars [SB2 Detail]

Download: Texas-2017-SB2-Introduced.html

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85R4849 SMH/TJB/CJC/LHC-D
By: Bettencourt, et al. S.B. No. 2

A BILL TO BE ENTITLED
AN ACT
relating to ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Texas Property Tax
Reform and Relief Act of 2017.
SECTION 2. Chapter 5, Tax Code, is amended by adding
Sections 5.01 and 5.02 to read as follows:
Sec. 5.01. PROPERTY TAX ADMINISTRATION ADVISORY BOARD. (a)
The comptroller shall appoint the property tax administration
advisory board to advise the comptroller with respect to the
division or divisions within the office of the comptroller with
primary responsibility for state administration of property
taxation and state oversight of appraisal districts and local tax
offices. The advisory board shall make recommendations to the
comptroller regarding:
(1) proposed property tax rules and prescribed
procedures and forms;
(2) minimum standards for the administration and
operation of an appraisal district;
(3) minimum standards for the administration and
operation of a local tax office;
(4) appointment of the director, managers, and other
executive staff of the division or divisions within the office of
the comptroller with primary responsibility for state
administration of property taxation and state oversight of
appraisal districts and local tax offices;
(5) property tax publications, guidelines, and
communications;
(6) property value studies for school districts and
ratio studies for appraisal districts;
(7) reviews of appraisal districts and appraisal
review boards;
(8) computer hardware and software needs for:
(A) the division or divisions within the office
of the comptroller with primary responsibility for state
administration of property taxation and state oversight of
appraisal districts and local tax offices;
(B) appraisal districts; and
(C) local tax offices; and
(9) other property tax operational matters.
(b) The advisory board is composed of six members appointed
by the comptroller with the advice of the governor, lieutenant
governor, and speaker of the house of representatives. Board
members serve at the pleasure of the comptroller.
(c) The members of the advisory board must have knowledge of
or experience in property tax administration, appraisal, or law.
(d) Appointments to the advisory board shall be made without
regard to the race, color, disability, gender, religion, age, or
national origin of appointees.
(e) Each member of the advisory board must be a resident of
this state.
(f) An elected official may not serve on the advisory board.
(g) The advisory board is governed exclusively by this
chapter.
(h) The comptroller's staff shall provide assistance to the
advisory board in performing its duties.
Sec. 5.02. RESTRICTIONS ON ADVISORY BOARD MEMBERSHIP. A
person is not eligible to serve on the property tax administration
advisory board if the person or the person's spouse:
(1) is employed by or contracts with the comptroller,
an appraisal district, or a taxing unit;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization receiving money from the comptroller, an appraisal
district, or a taxing unit; or
(3) receives money from a business entity or other
organization receiving money from the comptroller, an appraisal
district, or a taxing unit in an amount that exceeds five percent of
the person's gross income for the preceding calendar year.
SECTION 3. Section 5.05, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) An appraisal district shall appraise property in
accordance with any appraisal manuals prepared and issued by the
comptroller under this section.
SECTION 4. Sections 5.102(a) and (c), Tax Code, are amended
to read as follows:
(a) At least once every two years, the comptroller shall
review the governance of each appraisal district, taxpayer
assistance provided, and the operating and appraisal standards,
procedures, and methodology used by each appraisal district, to
determine compliance with generally accepted standards,
procedures, and methodology, including compliance with standards,
procedures, and methodology prescribed by appraisal manuals
prepared and issued by the comptroller. After consultation with
the property tax administration advisory board [committee created
under Section 403.302, Government Code], the comptroller by rule
may establish procedures and standards for conducting and scoring
the review.
(c) At the conclusion of the review, the comptroller shall,
in writing, notify the appraisal district concerning its
performance in the review. If the review results in a finding that
an appraisal district is not in compliance with generally accepted
standards, procedures, and methodology, including compliance with
standards, procedures, and methodology prescribed by appraisal
manuals prepared and issued by the comptroller, the comptroller
shall deliver a report that details the comptroller's findings and
recommendations for improvement to:
(1) the appraisal district's chief appraiser and board
of directors; and
(2) the superintendent and board of trustees of each
school district participating in the appraisal district.
SECTION 5. Section 5.13(d), Tax Code, is amended to read as
follows:
(d) In conducting a general audit, the comptroller shall
consider and report on:
(1) the extent to which the district complies with
applicable law or generally accepted standards of appraisal or
other relevant practice, including appraisal standards and
practices prescribed by appraisal manuals prepared and issued by
the comptroller;
(2) the uniformity and level of appraisal of major
kinds of property and the cause of any significant deviations from
ideal uniformity and equality of appraisal of major kinds of
property;
(3) duplication of effort and efficiency of operation;
(4) the general efficiency, quality of service, and
qualification of appraisal district personnel; and
(5) except as otherwise provided by Subsection (b) [of
this section], any other matter included in the request for the
audit.
SECTION 6. Section 6.03(a), Tax Code, is amended to read as
follows:
(a) The appraisal district is governed by a board of
directors. Five directors are appointed by the taxing units that
participate in the district as provided by this section. If the
county assessor-collector is not appointed to the board, the county
assessor-collector serves as a nonvoting director. The county
assessor-collector is ineligible to serve if the board enters into
a contract under Section 6.05(b) or if the commissioners court of
the county enters into a contract under Section 6.24(b). To be
eligible to serve on the board of directors, an individual other
than a county assessor-collector serving as a nonvoting director
must:
(1) be a resident of the district;
(2) [and must] have resided in the district for at
least two years immediately preceding the date the individual takes
office; and
(3) be an elected county officer or an elected
official of a political subdivision all or part of the territory of
which is located in the county. [An individual who is otherwise
eligible to serve on the board is not ineligible because of
membership on the governing body of a taxing unit. An employee of a
taxing unit that participates in the district is not eligible to
serve on the board unless the individual is also a member of the
governing body or an elected official of a taxing unit that
participates in the district.]
SECTION 7. Section 6.41, Tax Code, is amended by amending
Subsections (b) and (d-9) and adding Subsections (b-1), (b-2), and
(d-10) to read as follows:
(b) Except as provided by Subsection (b-1) or (b-2), an
appraisal review [The] board consists of three members.
(b-1) An appraisal [However, the] district board of
directors by resolution of a majority of the board's [its] members
may increase the size of the district's appraisal review board to
the number of members the board of directors considers appropriate.
(b-2) An appraisal district board of directors for a
district established in a county described by Subsection (d-1) by
resolution of a majority of the board's members shall increase the
size of the district's appraisal review board to the number of
members the board of directors considers appropriate to manage the
duties of the appraisal review board, including the duties of each
special panel established under Section 6.425.
(d-9) In selecting individuals who are to serve as members
of the appraisal review board, the local administrative district
judge shall select an adequate number of qualified individuals to
permit the chairman of the appraisal review board to fill the
positions on each special panel established under Section 6.425.
(d-10) Upon selection of the individuals who are to serve as
members of the appraisal review board, the local administrative
district judge shall enter an appropriate order designating such
members and setting each member's respective term of office, as
provided elsewhere in this section.
SECTION 8. Section 6.414(d), Tax Code, is amended to read as
follows:
(d) An auxiliary board member may hear taxpayer protests
before the appraisal review board. An auxiliary board member may
not hear taxpayer protests before a special panel established under
Section 6.425 unless the member is eligible to be appointed to the
special panel. If one or more auxiliary board members sit on a panel
established under Section 6.425 or 41.45 to conduct a protest
hearing, the number of regular appraisal review board members
required by that section to constitute the panel is reduced by the
number of auxiliary board members sitting. An auxiliary board
member sitting on a panel is considered a regular board member for
all purposes related to the conduct of the hearing.
SECTION 9. Section 6.42, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) The concurrence of a majority of the members of the
appraisal review board or a panel of the board present at a meeting
of the board or panel is sufficient for a recommendation,
determination, decision, or other action by the board or panel, and
the concurrence of more than a majority of the members of the board
or panel may not be required.
SECTION 10. Subchapter C, Chapter 6, Tax Code, is amended by
adding Section 6.425 to read as follows:
Sec. 6.425. SPECIAL APPRAISAL REVIEW BOARD PANELS IN
CERTAIN DISTRICTS. (a) This section applies only to the appraisal
review board for an appraisal district described by Section
6.41(b-2).
(b) The appraisal review board shall establish a separate
special panel for each of the following classifications of property
to conduct protest hearings under Chapter 41 relating to property
included in that classification:
(1) commercial real and personal property;
(2) real and personal property of utilities;
(3) industrial and manufacturing real and personal
property; and
(4) multifamily residential real property.
(c) The chairman of the appraisal review board may establish
additional special panels described by this section to conduct
protest hearings relating to property included in a classification
described by Subsection (b) if the chairman determines that
additional panels are necessary.
(d) Each special panel described by this section consists of
three members of the appraisal review board appointed by the
chairman of the board.
(e) To be eligible to be appointed to a special panel
described by this section, a member of the appraisal review board
must:
(1) hold a juris doctor or equivalent degree;
(2) hold a master of business administration degree;
(3) be licensed as a certified public accountant under
Chapter 901, Occupations Code;
(4) be accredited by the American Society of
Appraisers as an accredited senior appraiser;
(5) possess an MAI professional designation from the
Appraisal Institute;
(6) possess a Certified Assessment Evaluator (CAE)
professional designation from the International Association of
Assessing Officers; or
(7) have at least 20 years of experience in property
tax appraisal or consulting.
(f) Notwithstanding Subsection (e), the chairman of the
appraisal review board may appoint to a special panel described by
this section a member of the appraisal review board who does not
meet the qualifications prescribed by that subsection if:
(1) the number of persons appointed to the board by the
local administrative district judge who meet those qualifications
is not sufficient to fill the positions on each special panel; and
(2) the board member being appointed to the panel:
(A) holds a bachelor's degree in any field; or
(B) is licensed as a real estate broker or sales
agent under Chapter 1101, Occupations Code.
SECTION 11. The heading to Section 11.145, Tax Code, is
amended to read as follows:
Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
HAVING VALUE OF LESS THAN $2,500 [$500].
SECTION 12. Section 11.145(a), Tax Code, is amended to read
as follows:
(a) A person is entitled to an exemption from taxation of
the tangible personal property the person owns that is held or used
for the production of income if that property has a taxable value of
less than $2,500 [$500].
SECTION 13. Section 22.23, Tax Code, is amended to read as
follows:
Sec. 22.23. FILING DATE. (a) Rendition statements and
property reports must be delivered to the chief appraiser after
January 1 and not later than March [April] 15, except as provided by
Section 22.02.
(b) On written request by the property owner, the chief
appraiser shall extend a deadline for filing a rendition statement
or property report to April [May] 15. The chief appraiser may
further extend the deadline an additional 15 days upon good cause
shown in writing by the property owner.
SECTION 14. Section 23.01(b), Tax Code, is amended to read
as follows:
(b) The market value of property shall be determined by the
application of generally accepted appraisal methods and
techniques, including appraisal methods and techniques prescribed
by appraisal manuals prepared and issued by the comptroller. If
the appraisal district determines the appraised value of a property
using mass appraisal standards, the mass appraisal standards must
comply with the Uniform Standards of Professional Appraisal
Practice. The same or similar appraisal methods and techniques
shall be used in appraising the same or similar kinds of
property. However, each property shall be appraised based upon the
individual characteristics that affect the property's market
value, and all available evidence that is specific to the value of
the property shall be taken into account in determining the
property's market value.
SECTION 15. Section 25.19, Tax Code, is amended by amending
Subsections (a) and (g) and adding Subsection (b-3) to read as
follows:
(a) By April 15 [1] or as soon thereafter as practicable [if
the property is a single-family residence that qualifies for an
exemption under Section 11.13, or by May 1 or as soon thereafter as
practicable in connection with any other property], the chief
appraiser shall deliver a clear and understandable written notice
to a property owner of the appraised value of the property owner's
property if:
(1) the appraised value of the property is greater
than it was in the preceding year;
(2) the appraised value of the property is greater
than the value rendered by the property owner;
(3) the property was not on the appraisal roll in the
preceding year; or
(4) an exemption or partial exemption approved for the
property for the preceding year was canceled or reduced for the
current year.
(b-3) This subsection applies only to an appraisal district
described by Section 6.41(b-2). In addition to the information
required by Subsection (b), the chief appraiser shall state in a
notice of appraised value of property included in a classification
described by Section 6.425(b) that the property owner has the right
to have a protest relating to the property heard by a special panel
of the appraisal review board.
(g) By April 15 [1] or as soon thereafter as practicable [if
the property is a single-family residence that qualifies for an
exemption under Section 11.13, or by May 1 or as soon thereafter as
practicable in connection with any other property], the chief
appraiser shall deliver a written notice to the owner of each
property not included in a notice required to be delivered under
Subsection (a), if the property was reappraised in the current tax
year, if the ownership of the property changed during the preceding
year, or if the property owner or the agent of a property owner
authorized under Section 1.111 makes a written request for the
notice. The chief appraiser shall separate real from personal
property and include in the notice for each property:
(1) the appraised value of the property in the
preceding year;
(2) the appraised value of the property for the
current year and the kind of each partial exemption, if any,
approved for the current year;
(3) a detailed explanation of the time and procedure
for protesting the value; and
(4) the date and place the appraisal review board will
begin hearing protests.
SECTION 16. Section 25.22(a), Tax Code, is amended to read
as follows:
(a) By May 1 [15] or as soon thereafter as practicable, the
chief appraiser shall submit the completed appraisal records to the
appraisal review board for review and determination of protests.
However, the chief appraiser may not submit the records until the
chief appraiser has delivered the notices required by Subsection
(d) of Section 11.45, Subsection (d) of Section 23.44, Subsection
(d) of Section 23.57, Subsection (d) of Section 23.79, Subsection
(d) of Section 23.85, Subsection (d) of Section 23.95, Subsection
(d) of Section 23.9805, and Section 25.19.
SECTION 17. Sections 26.01(a) and (e), Tax Code, are
amended to read as follows:
(a) By July 10 [25], the chief appraiser shall prepare and
certify to the assessor for each taxing unit participating in the
district that part of the appraisal roll for the district that lists
the property taxable by the unit. The part certified to the
assessor is the appraisal roll for the unit. The chief appraiser
shall consult with the assessor for each taxing unit and notify each
unit in writing by April 1 of the form in which the roll will be
provided to each unit.
(e) Except as provided by Subsection (f), not later than May
15 [April 30], the chief appraiser shall prepare and certify to the
assessor for each county, municipality, and school district
participating in the appraisal district an estimate of the taxable
value of property in that taxing unit. The chief appraiser shall
assist each county, municipality, and school district in
determining values of property in that taxing unit for the taxing
unit's budgetary purposes.
SECTION 18. Section 26.04, Tax Code, is amended by amending
Subsections (b), (c), and (e) and adding Subsection (c-1) to read as
follows:
(b) The assessor shall submit the appraisal roll for the
unit showing the total appraised, assessed, and taxable values of
all property and the total taxable value of new property to the
governing body of the unit by July 15 [August 1] or as soon
thereafter as practicable. By July 15 [August 1] or as soon
thereafter as practicable, the taxing unit's collector shall
certify an estimate of the collection rate for the current year to
the governing body. If the collector certified an anticipated
collection rate in the preceding year and the actual collection
rate in that year exceeded the anticipated rate, the collector
shall also certify the amount of debt taxes collected in excess of
the anticipated amount in the preceding year.
(c) An officer or employee designated by the governing body
shall calculate the effective tax rate and the rollback tax rate for
the unit, where:
(1) "Effective tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
; and
(2) "Rollback tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE
(c-1) Notwithstanding any other provision of this section,
the governing body may direct the designated officer or employee to
substitute "1.08" for "1.04" in the calculation of the rollback tax
rate if any part of the taxing unit is located in an area declared a
disaster area during the current tax year by the governor or by the
president of the United States.
(e) By July 22 [August 7] or as soon thereafter as
practicable, the designated officer or employee shall submit the
rates to the governing body. By July 27, the designated officer or
employee [He] shall deliver by mail to each property owner in the
unit or publish in a newspaper in the form prescribed by the
comptroller:
(1) the effective tax rate, the rollback tax rate, and
an explanation of how they were calculated;
(2) the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding existing debt
obligation;
(3) a schedule of the unit's debt obligations showing:
(A) the amount of principal and interest that
will be paid to service the unit's debts in the next year from
property tax revenue, including payments of lawfully incurred
contractual obligations providing security for the payment of the
principal of and interest on bonds and other evidences of
indebtedness issued on behalf of the unit by another political
subdivision and, if the unit is created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, payments on
debts that the unit anticipates to incur in the next calendar year;
(B) the amount by which taxes imposed for debt
are to be increased because of the unit's anticipated collection
rate; and
(C) the total of the amounts listed in Paragraphs
(A)-(B), less any amount collected in excess of the previous year's
anticipated collections certified as provided in Subsection (b);
(4) the amount of additional sales and use tax revenue
anticipated in calculations under Section 26.041;
(5) a statement that the adoption of a tax rate equal
to the effective tax rate would result in an increase or decrease,
as applicable, in the amount of taxes imposed by the unit as
compared to last year's levy, and the amount of the increase or
decrease;
(6) in the year that a taxing unit calculates an
adjustment under Subsection (i) or (j), a schedule that includes
the following elements:
(A) the name of the unit discontinuing the
department, function, or activity;
(B) the amount of property tax revenue spent by
the unit listed under Paragraph (A) to operate the discontinued
department, function, or activity in the 12 months preceding the
month in which the calculations required by this chapter are made;
and
(C) the name of the unit that operates a distinct
department, function, or activity in all or a majority of the
territory of a taxing unit that has discontinued operating the
distinct department, function, or activity; and
(7) in the year following the year in which a taxing
unit raised its rollback rate as required by Subsection (j), a
schedule that includes the following elements:
(A) the amount of property tax revenue spent by
the unit to operate the department, function, or activity for which
the taxing unit raised the rollback rate as required by Subsection
(j) for the 12 months preceding the month in which the calculations
required by this chapter are made; and
(B) the amount published by the unit in the
preceding tax year under Subdivision (6)(B).
SECTION 19. Section 26.041, Tax Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsection (c-1)
to read as follows:
(a) In the first year in which an additional sales and use
tax is required to be collected, the effective tax rate and rollback
tax rate for the unit are calculated according to the following
formulas:
EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
SALES TAX GAIN RATE
and
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE -
SALES TAX GAIN RATE
where "sales tax gain rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that will
be generated by the additional sales and use tax in the following
year as calculated under Subsection (d) [of this section] by the
current total value.
(b) Except as provided by Subsections (a) and (c) [of this
section], in a year in which a taxing unit imposes an additional
sales and use tax the rollback tax rate for the unit is calculated
according to the following formula, regardless of whether the unit
levied a property tax in the preceding year:
ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT
TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE
- SALES TAX REVENUE RATE)
where "last year's maintenance and operations expense" means the
amount spent for maintenance and operations from property tax and
additional sales and use tax revenues in the preceding year, and
"sales tax revenue rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that will
be generated by the additional sales and use tax in the current year
as calculated under Subsection (d) [of this section] by the current
total value.
(c) In a year in which a taxing unit that has been imposing
an additional sales and use tax ceases to impose an additional sales
and use tax the effective tax rate and rollback tax rate for the
unit are calculated according to the following formulas:
EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
SALES TAX LOSS RATE
and
ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT
TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
where "sales tax loss rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the amount of sales
and use tax revenue generated in the last four quarters for which
the information is available by the current total value and "last
year's maintenance and operations expense" means the amount spent
for maintenance and operations from property tax and additional
sales and use tax revenues in the preceding year.
(c-1) Notwithstanding any other provision of this section,
the governing body may direct the designated officer or employee to
substitute "1.08" for "1.04" in the calculation of the rollback tax
rate if any part of the taxing unit is located in an area declared a
disaster area during the current tax year by the governor or by the
president of the United States.
SECTION 20. Section 26.05(a), Tax Code, is amended to read
as follows:
(a) The governing body of each taxing unit[, before the
later of September 30 or the 60th day after the date the certified
appraisal roll is received by the taxing unit,] shall adopt a tax
rate for the current tax year and shall notify the assessor for the
unit of the rate adopted. The governing body must adopt a tax rate
before the later of September 30 or the 60th day after the date the
certified appraisal roll is received by the taxing unit, except
that the governing body must adopt a tax rate that exceeds the
rollback tax rate before August 15. The tax rate consists of two
components, each of which must be approved separately. The
components are:
(1) for a taxing unit other than a school district, the
rate that, if applied to the total taxable value, will impose the
total amount published under Section 26.04(e)(3)(C), less any
amount of additional sales and use tax revenue that will be used to
pay debt service, or, for a school district, the rate calculated
under Section 44.004(c)(5)(A)(ii)(b), Education Code; and
(2) the rate that, if applied to the total taxable
value, will impose the amount of taxes needed to fund maintenance
and operation expenditures of the unit for the next year.
SECTION 21. Section 26.06(e), Tax Code, is amended to read
as follows:
(e) The meeting to vote on the tax increase may not be
earlier than the third day or later than the seventh [14th] day
after the date of the second public hearing. The meeting must be
held inside the boundaries of the taxing unit in a publicly owned
building or, if a suitable publicly owned building is not
available, in a suitable building to which the public normally has
access. If the governing body does not adopt a tax rate that
exceeds the lower of the rollback tax rate or the effective tax rate
by the seventh [14th] day, it must give a new notice under
Subsection (d) before it may adopt a rate that exceeds the lower of
the rollback tax rate or the effective tax rate.
SECTION 22. The heading to Section 26.08, Tax Code, is
amended to read as follows:
Sec. 26.08. ELECTION TO RATIFY TAX RATE [SCHOOL TAXES].
SECTION 23. Sections 26.08(a), (b), (d), (d-1), (d-2), (e),
and (h), Tax Code, are amended to read as follows:
(a) If the governing body of a taxing unit [school district]
adopts a tax rate that exceeds the taxing unit's [district's]
rollback tax rate, the registered voters of the taxing unit
[district] at an election held for that purpose must determine
whether to approve the adopted tax rate. When increased
expenditure of money by a taxing unit [school district] is
necessary to respond to a disaster, including a tornado, hurricane,
flood, or other calamity, but not including a drought, that has
impacted the taxing unit [a school district] and the governor has
requested federal disaster assistance for the area in which the
taxing unit [school district] is located, an election is not
required under this section to approve the tax rate adopted by the
governing body for the year following the year in which the disaster
occurs.
(b) The governing body shall order that the election be held
in the taxing unit [school district] on the uniform election date
prescribed by [a date not less than 30 or more than 90 days after the
day on which it adopted the tax rate.] Section 41.001, Election
Code, that occurs in November of the applicable tax year. The order
calling the election may not be issued later than August 15 [does
not apply to the election unless a date specified by that section
falls within the time permitted by this section]. At the election,
the ballots shall be prepared to permit voting for or against the
proposition: "Approving the ad valorem tax rate of $_____ per $100
valuation in (name of taxing unit [school district]) for the
current year, a rate that is $_____ higher per $100 valuation than
the [school district] rollback tax rate of (name of taxing unit),
for the purpose of (description of purpose of increase)." The
ballot proposition must include the adopted tax rate and the
difference between that rate and the rollback tax rate in the
appropriate places.
(d) If the proposition is not approved as provided by
Subsection (c), the governing body may not adopt a tax rate for the
taxing unit [school district] for the current year that exceeds the
taxing unit's [school district's] rollback tax rate.
(d-1) If, after tax bills for the taxing unit [school
district] have been mailed, a proposition to approve the taxing
unit's [school district's] adopted tax rate is not approved by the
voters of the taxing unit [district] at an election held under this
section, on subsequent adoption of a new tax rate by the governing
body of the taxing unit [district], the assessor for the taxing unit
[school] shall prepare and mail corrected tax bills. The assessor
shall include with each bill a brief explanation of the reason for
and effect of the corrected bill. The date on which the taxes
become delinquent for the year is extended by a number of days equal
to the number of days between the date the first tax bills were sent
and the date the corrected tax bills were sent.
(d-2) If a property owner pays taxes calculated using the
originally adopted tax rate of the taxing unit [school district]
and the proposition to approve the adopted tax rate is not approved
by the voters, the taxing unit [school district] shall refund the
difference between the amount of taxes paid and the amount due under
the subsequently adopted rate if the difference between the amount
of taxes paid and the amount due under the subsequent rate is $1 or
more. If the difference between the amount of taxes paid and the
amount due under the subsequent rate is less than $1, the taxing
unit [school district] shall refund the difference on request of
the taxpayer. An application for a refund of less than $1 must be
made within 90 days after the date the refund becomes due or the
taxpayer forfeits the right to the refund.
(e) For purposes of this section, local tax funds dedicated
to a junior college district under Section 45.105(e), Education
Code, shall be eliminated from the calculation of the tax rate
adopted by the governing body of a [the] school district. However,
the funds dedicated to the junior college district are subject to
Section 26.085.
(h) For purposes of this section, increases in taxable
values and tax levies occurring within a reinvestment zone under
Chapter 311 (Tax Increment Financing Act), in which a school [the]
district is a participant, shall be eliminated from the calculation
of the tax rate adopted by the governing body of the school
district.
SECTION 24. Section 26.16(d), Tax Code, is amended to read
as follows:
(d) The county assessor-collector shall post immediately
below the table prescribed by Subsection (c) the following
statement:
"The county is providing this table of property tax rate
information as a service to the residents of the county. Each
individual taxing unit is responsible for calculating the property
tax rates listed in this table pertaining to that taxing unit and
providing that information to the county.
"The adopted tax rate is the tax rate adopted by the governing
body of a taxing unit.
"The maintenance and operations rate is the component of the
adopted tax rate of a taxing unit that will impose the amount of
taxes needed to fund maintenance and operation expenditures of the
unit for the following year.
"The debt rate is the component of the adopted tax rate of a
taxing unit that will impose the amount of taxes needed to fund the
unit's debt service for the following year.
"The effective tax rate is the tax rate that would generate
the same amount of revenue in the current tax year as was generated
by a taxing unit's adopted tax rate in the preceding tax year from
property that is taxable in both the current tax year and the
preceding tax year.
"The effective maintenance and operations rate is the tax
rate that would generate the same amount of revenue for maintenance
and operations in the current tax year as was generated by a taxing
unit's maintenance and operations rate in the preceding tax year
from property that is taxable in both the current tax year and the
preceding tax year.
"The rollback tax rate is the highest tax rate a taxing unit
may adopt before requiring voter approval at an election. An [In
the case of a taxing unit other than a school district, the voters
by petition may require that a rollback election be held if the unit
adopts a tax rate in excess of the unit's rollback tax rate. In the
case of a school district, an] election will automatically be held
if a taxing unit [the district] wishes to adopt a tax rate in excess
of the unit's [district's] rollback tax rate."
SECTION 25. Sections 31.12(a) and (b), Tax Code, are
amended to read as follows:
(a) If a refund of a tax provided by Section 11.431(b),
26.08(d-2) [26.07(g)], 26.15(f), 31.11, or 31.111 is paid on or
before the 60th day after the date the liability for the refund
arises, no interest is due on the amount refunded. If not paid on or
before that 60th day, the amount of the tax to be refunded accrues
interest at a rate of one percent for each month or part of a month
that the refund is unpaid, beginning with the date on which the
liability for the refund arises.
(b) For purposes of this section, liability for a refund
arises:
(1) if the refund is required by Section 11.431(b), on
the date the chief appraiser notifies the collector for the unit of
the approval of the late homestead exemption;
(2) if the refund is required by Section 26.08(d-2)
[26.07(g)], on the date the results of the election to reduce the
tax rate are certified;
(3) if the refund is required by Section 26.15(f):
(A) for a correction to the tax roll made under
Section 26.15(b), on the date the change in the tax roll is
certified to the assessor for the taxing unit under Section 25.25;
or
(B) for a correction to the tax roll made under
Section 26.15(c), on the date the change in the tax roll is ordered
by the governing body of the taxing unit;
(4) if the refund is required by Section 31.11, on the
date the auditor for the taxing unit determines that the payment was
erroneous or excessive or, if the amount of the refund exceeds the
applicable amount specified by Section 31.11(a), on the date the
governing body of the unit approves the refund; or
(5) if the refund is required by Section 31.111, on the
date the collector for the taxing unit determines that the payment
was erroneous.
SECTION 26. Section 33.08(b), Tax Code, is amended to read
as follows:
(b) The governing body of the taxing unit or appraisal
district, in the manner required by law for official action, may
provide that taxes that become delinquent on or after June 1 under
Section 26.08(d-1) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032,
31.04, or 42.42 incur an additional penalty to defray costs of
collection. The amount of the penalty may not exceed the amount of
the compensation specified in the applicable contract with an
attorney under Section 6.30 to be paid in connection with the
collection of the delinquent taxes.
SECTION 27. Section 41.03(a), Tax Code, is amended to read
as follows:
(a) A taxing unit is entitled to challenge before the
appraisal review board:
(1) [the level of appraisals of any category of
property in the district or in any territory in the district, but
not the appraised value of a single taxpayer's property;
[(2)] an exclusion of property from the appraisal
records;
(2) [(3)] a grant in whole or in part of a partial
exemption;
(3) [(4)] a determination that land qualifies for
appraisal as provided by Subchapter C, D, E, or H, Chapter 23; or
(4) [(5)] failure to identify the taxing unit as one
in which a particular property is taxable.
SECTION 28. Section 41.11(a), Tax Code, is amended to read
as follows:
(a) Not later than the date the appraisal review board
approves the appraisal records as provided by Section 41.12, the
secretary of the board shall deliver written notice to a property
owner of any change in the records that is ordered by the board as
provided by this subchapter and that will result in an increase in
the tax liability of the property owner. An owner who receives a
notice as provided by this section shall be entitled to protest such
action as provided by Section 41.44(a)(2) [41.44(a)(3)].
SECTION 29. Section 41.12(a), Tax Code, is amended to read
as follows:
(a) By July 5 [20], the appraisal review board shall:
(1) hear and determine all or substantially all timely
filed protests;
(2) determine all timely filed challenges;
(3) submit a list of its approved changes in the
records to the chief appraiser; and
(4) approve the records.
SECTION 30. Sections 41.44(a), (b-1), (c), and (d), Tax
Code, are amended to read as follows:
(a) Except as provided by Subsections (b), (b-1), (c),
(c-1), and (c-2), to be entitled to a hearing and determination of a
protest, the property owner initiating the protest must file a
written notice of the protest with the appraisal review board
having authority to hear the matter protested:
(1) before May 15 [1] or not later than the 30th day
after the date that notice to the property owner was delivered to
the property owner as provided by Section 25.19, [if the property is
a single-family residence that qualifies for an exemption under
Section 11.13,] whichever is later;
(2) [before June 1 or not later than the 30th day after
the date that notice was delivered to the property owner as provided
by Section 25.19 in connection with any other property, whichever
is later;
[(3)] in the case of a protest of a change in the
appraisal records ordered as provided by Subchapter A of this
chapter or by Chapter 25, not later than the 30th day after the date
notice of the change is delivered to the property owner;
(3) [(4)] in the case of a determination that a change
in the use of land appraised under Subchapter C, D, E, or H, Chapter
23, has occurred, not later than the 30th day after the date the
notice of the determination is delivered to the property owner; or
(4) [(5)] in the case of a determination of
eligibility for a refund under Section 23.1243, not later than the
30th day after the date the notice of the determination is delivered
to the property owner.
(b-1) Notwithstanding Subsection (a)(1), an owner of a
single-family residence that qualifies for an exemption under
Section 11.13 [property described by that subsection] who files a
notice of protest after the deadline prescribed by that subsection
but before the appraisal review board approves the appraisal
records is entitled to a hearing and determination of the protest if
the property owner files the notice before June 1.
(c) A property owner who files notice of a protest
authorized by Section 41.411 is entitled to a hearing and
determination of the protest if the property owner files the notice
prior to the date the taxes on the property to which the notice
applies become delinquent. An owner of land who files a notice of
protest under Subsection (a)(3) [(a)(4)] is entitled to a hearing
and determination of the protest without regard to whether the
appraisal records are approved.
(d) A notice of protest is sufficient if it identifies the
protesting property owner, including a person claiming an ownership
interest in the property even if that person is not listed on the
appraisal records as an owner of the property, identifies the
property that is the subject of the protest, and indicates apparent
dissatisfaction with some determination of the appraisal office.
The notice need not be on an official form, but the comptroller
shall prescribe a form that provides for more detail about the
nature of the protest. The form must permit a property owner to
include each property in the appraisal district that is the subject
of a protest. The form must permit a property owner to request that
the protest be heard by a special panel established under Section
6.425 if the protest will be determined by an appraisal review board
to which that section applies and the property is included in a
classification described by that section. The comptroller, each
appraisal office, and each appraisal review board shall make the
forms readily available and deliver one to a property owner on
request.
SECTION 31. Section 41.45, Tax Code, is amended by amending
Subsection (d) and adding Subsections (d-1), (d-2), and (d-3) to
read as follows:
(d) This subsection does not apply to a special panel
established under Section 6.425. An appraisal review board
consisting of more than three members may sit in panels of not fewer
than three members to conduct protest hearings. [However, the
determination of a protest heard by a panel must be made by the
board.] If the recommendation of a panel is not accepted by the
board, the board may refer the matter for rehearing to a panel
composed of members who did not hear the original hearing or, if
there are not at least three members who did not hear the original
protest, the board may determine the protest. [Before determining a
protest or conducting a rehearing before a new panel or the board,
the board shall deliver notice of the hearing or meeting to
determine the protest in accordance with the provisions of this
subchapter.]
(d-1) An appraisal review board to which Section 6.425
applies shall sit in special panels established under that section
to conduct protest hearings. A special panel may conduct a protest
hearing relating to property only if the property is included in the
classification for which the panel was established and the property
owner has requested that the panel conduct the hearing. The board
may rehear a protest heard by a special panel if the board elects
not to accept the recommendation of the panel.
(d-2) The determination of a protest heard by a panel under
Subsection (d) or (d-1) must be made by the board.
(d-3) The board must deliver notice of a hearing or meeting
to determine a protest heard by a panel, or to rehear a protest,
under Subsection (d) or (d-1) in accordance with the provisions of
this subchapter.
SECTION 32. Section 41.66, Tax Code, is amended by amending
Subsection (k) and adding Subsection (k-1) to read as follows:
(k) This subsection does not apply to a special panel
established under Section 6.425. If an appraisal review board sits
in panels to conduct protest hearings, protests shall be randomly
assigned to panels, except that the board may consider the type of
property subject to the protest or the ground of the protest for the
purpose of using the expertise of a particular panel in hearing
protests regarding particular types of property or based on
particular grounds. If a protest is scheduled to be heard by a
particular panel, the protest may not be reassigned to another
panel without the consent of the property owner or designated
agent. If the appraisal review board has cause to reassign a
protest to another panel, a property owner or designated agent may
agree to reassignment of the protest or may request that the hearing
on the protest be postponed. The board shall postpone the hearing
on that request. A change of members of a panel because of a
conflict of interest, illness, or inability to continue
participating in hearings for the remainder of the day does not
constitute reassignment of a protest to another panel.
(k-1) On the request of a property owner, an appraisal
review board to which Section 6.425 applies shall assign a protest
relating to property included in a classification described by that
section to the special panel established to conduct protest
hearings relating to property included in that classification. If
the board has established more than one special panel to conduct
protest hearings relating to property included in a particular
classification, protests relating to property included in that
classification shall be randomly assigned to those special panels.
If a protest is scheduled to be heard by a particular special panel,
the protest may not be reassigned to another special panel without
the consent of the property owner or designated agent. If the board
has cause to reassign a protest to another special panel, a property
owner or designated agent may agree to reassignment of the protest
or may request that the hearing on the protest be postponed. The
board shall postpone the hearing on that request. A change of
members of a special panel because of a conflict of interest,
illness, or inability to continue participating in hearings for the
remainder of the day does not constitute reassignment of a protest
to another special panel.
SECTION 33. Section 41.71, Tax Code, is amended to read as
follows:
Sec. 41.71. EVENING AND WEEKEND HEARINGS. (a) An appraisal
review board by rule shall provide for hearings on protests [in the
evening or] on a Saturday or after 5 p.m. on a weekday [Sunday].
(b) The board may not schedule:
(1) the first hearing on a protest held on a weekday
evening to begin after 7 p.m.; or
(2) a hearing on a protest on a Sunday.
SECTION 34. Section 41A.01, Tax Code, is amended to read as
follows:
Sec. 41A.01. RIGHT OF APPEAL BY PROPERTY OWNER. As an
alternative to filing an appeal under Section 42.01, a property
owner is entitled to appeal through binding arbitration under this
chapter an appraisal review board order determining a protest filed
under Section 41.41(a)(1) or (2) concerning the appraised or market
value of property if:
(1) the property qualifies as the owner's residence
homestead under Section 11.13; or
(2) the appraised or market value, as applicable, of
the property as determined by the order is $5 [$3] million or less.
SECTION 35. Section 41A.03(a), Tax Code, is amended to read
as follows:
(a) To appeal an appraisal review board order under this
chapter, a property owner must file with the appraisal district not
later than the 45th day after the date the property owner receives
notice of the order:
(1) a completed request for binding arbitration under
this chapter in the form prescribed by Section 41A.04; and
(2) an arbitration deposit made payable to the
comptroller in the amount of:
(A) $450, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $500,000 or less,
as determined by the order;
(B) $500, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than
$500,000, as determined by the order;
(C) $500, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $1 million or
less, as determined by the order;
(D) $800, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than $1
million but not more than $2 million, as determined by the order;
[or]
(E) $1,050, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $2 million but not more than $3 million, as determined by the
order; or
(F) $1,250, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $3 million but not more than $5 million, as determined by the
order.
SECTION 36. Section 41A.06(b), Tax Code, is amended to read
as follows:
(b) To initially qualify to serve as an arbitrator under
this chapter, a person must:
(1) meet the following requirements, as applicable:
(A) be licensed as an attorney in this state; or
(B) have:
(i) completed at least 30 hours of training
in arbitration and alternative dispute resolution procedures from a
university, college, or legal or real estate trade association; and
(ii) been licensed or certified
continuously during the five years preceding the date the person
agrees to serve as an arbitrator as:
(a) a real estate broker or sales
agent [salesperson] under Chapter 1101, Occupations Code;
(b) a real estate appraiser under
Chapter 1103, Occupations Code; or
(c) a certified public accountant
under Chapter 901, Occupations Code; and
(2) agree to conduct an arbitration for a fee that is
not more than:
(A) $400, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $500,000 or less,
as determined by the order;
(B) $450, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than
$500,000, as determined by the order;
(C) $450, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $1 million or
less, as determined by the order;
(D) $750, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than $1
million but not more than $2 million, as determined by the order;
[or]
(E) $1,000, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $2 million but not more than $3 million, as determined by the
order; or
(F) $1,200, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $3 million but not more than $5 million, as determined by the
order.
SECTION 37. Section 130.016(b), Education Code, is amended
to read as follows:
(b) If the board of trustees of an independent school
district that divests itself of the management, control, and
operation of a junior college district under this section or under
Section 130.017 [of this code] was authorized by [Subsection (e)
of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
this code] to dedicate a portion of its tax levy to the junior
college district before the divestment, the junior college district
may levy an ad valorem tax from and after the divestment. In the
first two years in which the junior college district levies an ad
valorem tax, the tax rate adopted by the governing body may not
exceed the rate that, if applied to the total taxable value
submitted to the governing body under Section 26.04, Tax Code,
would impose an amount equal to the amount of taxes of the school
district dedicated to the junior college under [Subsection (e) of]
Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
in the last dedication before the divestment. In subsequent years,
the tax rate of the junior college district is subject to Section
26.08 [26.07], Tax Code.
SECTION 38. Section 403.302(o), Government Code, is amended
to read as follows:
(o) The comptroller shall adopt rules governing the conduct
of the study after consultation with the comptroller's property tax
administration advisory board [Comptroller's Property Value Study
Advisory Committee].
SECTION 39. Sections 281.124(d) and (e), Health and Safety
Code, are amended to read as follows:
(d) If a majority of the votes cast in the election favor the
proposition, the tax rate for the specified tax year is the rate
approved by the voters, and that rate is not subject to [a rollback
election under] Section 26.08 [26.07], Tax Code. The board shall
adopt the tax rate as provided by Chapter 26, Tax Code.
(e) If the proposition is not approved as provided by
Subsection (c), the board may not adopt a tax rate for the district
for the specified tax year that exceeds the rate that was not
approved, and Section 26.08 [26.07], Tax Code, applies to the
adopted rate if that rate exceeds the district's rollback tax rate.
SECTION 40. Sections 140.010(d) and (e), Local Government
Code, are amended to read as follows:
(d) A county or municipality that proposes a property tax
rate that does not exceed the [lower of the effective tax rate or
the] rollback tax rate shall provide the following notice:
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
"A tax rate of $______ per $100 valuation has been proposed by the
governing body of (insert name of county or municipality).
PROPOSED TAX RATE $______ per $100
PRECEDING YEAR'S TAX RATE $______ per $100
EFFECTIVE TAX RATE $______ per $100
"The effective tax rate is the total tax rate needed to raise the
same amount of property tax revenue for (insert name of county or
municipality) from the same properties in both the (insert
preceding tax year) tax year and the (insert current tax year) tax
year.
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
FOLLOWS:
property tax amount = (rate) x (taxable value of your property) /
100
"For assistance or detailed information about tax calculations,
please contact:
(insert name of county or municipal tax assessor-collector)
(insert name of county or municipality) tax
assessor-collector
(insert address)
(insert telephone number)
(insert e-mail address)
(insert Internet website address, if applicable)"
(e) A county or municipality that proposes a property tax
rate that exceeds the [lower of the effective tax rate or the]
rollback tax rate shall provide the following notice:
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
"A tax rate of $_____ per $100 valuation has been proposed for
adoption by the governing body of (insert name of county or
municipality). This rate exceeds the [lower of the effective or]
rollback tax rate, and state law requires that two public hearings
be held by the governing body before adopting the proposed tax
rate. The governing body of (insert name of county or
municipality) proposes to use revenue attributable to the tax rate
increase for the purpose of (description of purpose of increase).
PROPOSED TAX RATE$______ per $100
PRECEDING YEAR'S TAX RATE$______ per $100
EFFECTIVE TAX RATE$______ per $100
ROLLBACK TAX RATE$______ per $100
"The effective tax rate is the total tax rate needed to raise the
same amount of property tax revenue for (insert name of county or
municipality) from the same properties in both the (insert
preceding tax year) tax year and the (insert current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (insert name of
county or municipality) may adopt without holding [before voters
are entitled to petition for] an election to ratify [limit] the rate
[that may be approved to the rollback rate].
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
FOLLOWS:
property tax amount = (rate) x (taxable value of your property) /
100
"For assistance or detailed information about tax calculations,
please contact:
(insert name of county or municipal tax assessor-collector)
(insert name of county or municipality) tax
assessor-collector
(insert address)
(insert telephone number)
(insert e-mail address)
(insert Internet website address, if applicable)
"You are urged to attend and express your views at the following
public hearings on the proposed tax rate:
First Hearing: (insert date and time) at (insert location of
meeting).
Second Hearing: (insert date and time) at (insert location
of meeting)."
SECTION 41. Section 1101.254(f), Special District Local
Laws Code, is amended to read as follows:
(f) This section does not affect the applicability of [any
rights district voters may have to petition for an election under]
Section 26.08 [26.07], Tax Code, to the district's tax rate, except
that if district voters approve a tax rate increase under this
section, [the voters may not petition for an election under]
Section 26.08 [26.07], Tax Code, does not apply [as] to the tax rate
for that year.
SECTION 42. Sections 1122.2522, 3828.157, and 8876.152,
Special District Local Laws Code, are amended to read as follows:
Sec. 1122.2522. ROLLBACK TAX RATE PROVISIONS APPLICABLE.
[(a)] If in any year the board adopts a tax rate that exceeds the
rollback tax rate calculated as provided by Chapter 26, Tax Code,
[the qualified voters of the district by petition may require that]
an election under Section 26.08 of that code must be held to
determine whether or not to approve [reduce] the tax rate adopted by
the board for that year [to the rollback tax rate].
[(b) To the extent a conflict exists between this section
and a provision of the Tax Code, the provision of the Tax Code
prevails.]
Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
not apply to a tax imposed under Section 3828.153 or 3828.156.
Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
(a) Sections 26.04, 26.05, 26.06, and 26.08 [26.07], Tax Code, do
not apply to a tax imposed by the district.
(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
78th Legislature, Regular Session, 2003, applies] to the district.
SECTION 43. Section 49.107(g), Water Code, is amended to
read as follows:
(g) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
not apply to a tax levied and collected under this section or an ad
valorem tax levied and collected for the payment of the interest on
and principal of bonds issued by a district.
SECTION 44. Section 49.108(f), Water Code, is amended to
read as follows:
(f) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
not apply to a tax levied and collected for payments made under a
contract approved in accordance with this section.
SECTION 45. Section 49.236, Water Code, as added by Chapter
335 (S.B. 392), Acts of the 78th Legislature, Regular Session,
2003, is amended by amending Subsections (a) and (d) and adding
Subsection (e) to read as follows:
(a) Before the board adopts an ad valorem tax rate for the
district for debt service, operation and maintenance purposes, or
contract purposes, the board shall give notice of each meeting of
the board at which the adoption of a tax rate will be considered.
The notice must:
(1) contain a statement in substantially the following
form:
"NOTICE OF PUBLIC HEARING ON TAX RATE
"The (name of the district) will hold a public hearing on a
proposed tax rate for the tax year (year of tax levy) on (date and
time) at (meeting place). Your individual taxes may increase or
decrease, depending on the change in the taxable value of your
property in relation to the change in taxable value of all other
property and the tax rate that is adopted.
"(Names of all board members and, if a vote was taken, an
indication of how each voted on the proposed tax rate and an
indication of any absences.)";
(2) contain the following information:
(A) the district's total adopted tax rate for the
preceding year and the proposed tax rate, expressed as an amount per
$100;
(B) the difference, expressed as an amount per
$100 and as a percent increase or decrease, as applicable, in the
proposed tax rate compared to the adopted tax rate for the preceding
year;
(C) the average appraised value of a residence
homestead in the district in the preceding year and in the current
year; the district's total homestead exemption, other than an
exemption available only to disabled persons or persons 65 years of
age or older, applicable to that appraised value in each of those
years; and the average taxable value of a residence homestead in the
district in each of those years, disregarding any homestead
exemption available only to disabled persons or persons 65 years of
age or older;
(D) the amount of tax that would have been
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older;
(E) the amount of tax that would be imposed by the
district in the current year on a residence homestead appraised at
the average appraised value of a residence homestead in that year,
disregarding any homestead exemption available only to disabled
persons or persons 65 years of age or older, if the proposed tax
rate is adopted; [and]
(F) the difference between the amounts of tax
calculated under Paragraphs (D) and (E), expressed in dollars and
cents and described as the annual percentage increase or decrease,
as applicable, in the tax to be imposed by the district on the
average residence homestead in the district in the current year if
the proposed tax rate is adopted; and
(G) if the proposed combined debt service,
operation and maintenance, and contract tax rate exceeds the
rollback tax rate, a description of the purpose of the proposed tax
increase; and
(3) contain a statement in substantially the following
form:
"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
"If operation and maintenance taxes on the average residence
homestead increase by more than four [eight] percent, [the
qualified voters of the district by petition may require that] an
election must be held to determine whether to ratify [reduce] the
operation and maintenance tax rate [to the rollback tax rate] under
Section 49.236(d), Water Code."
(d) If the governing body of a district adopts a combined
debt service, operation and maintenance, and contract tax rate that
exceeds the rollback tax rate, [would impose more than 1.08 times
the amount of tax imposed by the district in the preceding year on a
residence homestead appraised at the average appraised value of a
residence homestead in the district in that year, disregarding any
homestead exemption available only to disabled persons or persons
65 years of age or older, the qualified voters of the district by
petition may require that] an election must be held to determine
whether [or not] to ratify [reduce] the tax rate adopted for the
current year [to the rollback tax rate] in accordance with the
procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and
26.081], Tax Code. For purposes of Sections 26.08(b)-(d)
[26.07(b)-(g)] and this section [subsection], the rollback tax rate
is the sum of the following tax rates:
(1) the current year's debt service tax rate;
(2) the current year's [and] contract tax rate; and
(3) [rates plus] the operation and maintenance tax
rate that would impose 1.04 [1.08] times the amount of the operation
and maintenance tax imposed by the district in the preceding year on
a residence homestead appraised at the average appraised value of a
residence homestead in the district in that year, disregarding any
homestead exemption available only to disabled persons or persons
65 years of age or older.
(e) Notwithstanding any other provision of this section,
the board may substitute "eight percent" for "four percent" in
Subsection (a) and "1.08" for "1.04" in Subsection (d) if any part
of the district is located in an area declared a disaster area
during the current tax year by the governor or by the president of
the United States.
SECTION 46. The following provisions are repealed:
(1) Sections 403.302(m-1) and (n), Government Code;
(2) Section 1063.255, Special District Local Laws
Code;
(3) Section 26.07, Tax Code;
(4) Section 49.236, Water Code, as added by Chapter
248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
2003; and
(5) Section 49.2361, Water Code.
SECTION 47. The changes in law made by this Act relating to
the ad valorem tax rate of a taxing unit apply beginning with the
2018 tax year.
SECTION 48. Sections 5.05, 5.102, 5.13, and 23.01, Tax
Code, as amended by this Act, apply only to the appraisal of
property for ad valorem tax purposes for a tax year beginning on or
after January 1, 2018.
SECTION 49. Section 6.03(a), Tax Code, as amended by this
Act, does not affect the right of a person serving on the board of
directors of an appraisal district on January 1, 2018, to complete
the person's term on the board.
SECTION 50. Section 6.41(d-9), Tax Code, as amended by this
Act, and Section 6.41(d-10), Tax Code, as added by this Act, apply
only to the appointment of appraisal review board members to terms
beginning on or after January 1, 2019.
SECTION 51. Section 6.42(d), Tax Code, as added by this Act,
applies only to a recommendation, determination, decision, or other
action by an appraisal review board or a panel of such a board on or
after January 1, 2018. A recommendation, determination, decision,
or other action by an appraisal review board or a panel of such a
board before January 1, 2018, is governed by the law as it existed
immediately before that date, and that law is continued in effect
for that purpose.
SECTION 52. Section 11.145, Tax Code, as amended by this
Act, applies only to ad valorem taxes imposed for a tax year
beginning on or after January 1, 2018.
SECTION 53. Section 25.19(b-3), Tax Code, as added by this
Act, applies only to a notice of appraised value for a tax year
beginning on or after January 1, 2019. A notice of appraised value
for a tax year beginning before January 1, 2019, is governed by the
law in effect immediately before that date, and that law is
continued in effect for that purpose.
SECTION 54. Section 41.03(a), Tax Code, as amended by this
Act, applies only to a challenge under Chapter 41, Tax Code, for
which a challenge petition is filed on or after January 1, 2018. A
challenge under Chapter 41, Tax Code, for which a challenge
petition was filed before January 1, 2018, is governed by the law in
effect on the date the challenge petition was filed, and the former
law is continued in effect for that purpose.
SECTION 55. Sections 41.45 and 41.66, Tax Code, as amended
by this Act, apply only to a protest filed under Chapter 41, Tax
Code, on or after January 1, 2019. A protest filed under that
chapter before January 1, 2019, is governed by the law in effect on
the date the protest was filed, and the former law is continued in
effect for that purpose.
SECTION 56. Section 41.71, Tax Code, as amended by this Act,
applies only to a hearing on a protest under Chapter 41, Tax Code,
that is scheduled on or after January 1, 2018. A hearing on a
protest under Chapter 41, Tax Code, that is scheduled before
January 1, 2018, is governed by the law in effect on the date the
hearing was scheduled, and that law is continued in effect for that
purpose.
SECTION 57. Sections 41A.01, 41A.03, and 41A.06, Tax Code,
as amended by this Act, apply only to a request for binding
arbitration under Chapter 41A, Tax Code, that is filed on or after
January 1, 2018. A request for binding arbitration under Chapter
41A, Tax Code, that is filed before January 1, 2018, is governed by
the law in effect on the date the request is filed, and the former
law is continued in effect for that purpose.
SECTION 58. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2018.
(b) The following provisions take effect September 1, 2018:
(1) Sections 6.41(b) and (d-9), Tax Code, as amended
by this Act;
(2) Sections 6.41(b-1), (b-2), and (d-10), Tax Code,
as added by this Act;
(3) Section 6.414(d), Tax Code, as amended by this
Act;
(4) Section 6.425, Tax Code, as added by this Act;
(5) Section 25.19(b-3), Tax Code, as added by this
Act;
(6) Section 41.44(d), Tax Code, as amended by this
Act;
(7) Section 41.45(d), Tax Code, as amended by this
Act;
(8) Sections 41.45(d-1), (d-2), and (d-3), Tax Code,
as added by this Act;
(9) Section 41.66(k), Tax Code, as amended by this
Act; and
(10) Section 41.66(k-1), Tax Code, as added by this
Act.