Bill Text: TX SB93 | 2017 | 85th Legislature 1st Special Session | Introduced
Bill Title: Relating to ad valorem taxation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-07-22 - Left pending in committee [SB93 Detail]
Download: Texas-2017-SB93-Introduced.html
85S11047 SMH-F | ||
By: Bettencourt | S.B. No. 93 |
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relating to ad valorem taxation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 5.07, Tax Code, is amended by adding | ||
Subsection (f) to read as follows: | ||
(f) The comptroller shall prescribe the form of the | ||
worksheets to be used by the designated officer or employee of each | ||
taxing unit in calculating the no-new-taxes tax rate and rollback | ||
tax rate for the unit as required by Chapter 26. The form must be in | ||
an electronic format and be capable of: | ||
(1) being completed electronically; | ||
(2) performing calculations automatically based on | ||
the data entered by the designated officer or employee; | ||
(3) being certified by the designated officer or | ||
employee after completion; and | ||
(4) being submitted electronically to the comptroller | ||
on completion and certification. | ||
SECTION 2. Section 5.091, Tax Code, is amended to read as | ||
follows: | ||
Sec. 5.091. STATEWIDE LIST OF TAX RATES. (a) Each year the | ||
comptroller shall prepare a list that includes the total tax rate | ||
imposed by each taxing unit in this state[ |
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year [ |
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comptroller shall list the tax rates alphabetically according to: | ||
(1) the county or counties in which each taxing unit is | ||
located; and | ||
(2) the name of each taxing unit [ |
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(b) Not later than January 1 [ |
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Internet website the list required by Subsection (a). | ||
SECTION 3. Chapter 5, Tax Code, is amended by adding Section | ||
5.092 to read as follows: | ||
Sec. 5.092. STATEWIDE DATABASE OF OTHER PROPERTY TAX | ||
RELATED INFORMATION. (a) The comptroller shall create and | ||
maintain a property tax database that: | ||
(1) contains information that is provided by | ||
designated officers or employees of taxing units in the manner | ||
required by the comptroller; | ||
(2) is continuously updated as preliminary and revised | ||
data become available to and are provided by the designated | ||
officers or employees of taxing units; | ||
(3) is accessible to the public; and | ||
(4) is searchable by property address. | ||
(b) The database must include, with respect to each property | ||
listed on an appraisal roll: | ||
(1) the property's identification number; | ||
(2) the property's market value; | ||
(3) the property's taxable value; | ||
(4) the name of each taxing unit in which the property | ||
is located; | ||
(5) for each taxing unit other than a school district | ||
in which the property is located: | ||
(A) the no-new-taxes tax rate; and | ||
(B) the rollback tax rate; | ||
(6) for each school district in which the property is | ||
located: | ||
(A) the rate to maintain the same amount of state | ||
and local revenue per weighted student that the district received | ||
in the school year beginning in the preceding tax year; and | ||
(B) the rollback tax rate; | ||
(7) the tax rate proposed by the governing body of each | ||
taxing unit in which the property is located; | ||
(8) for each taxing unit other than a school district | ||
in which the property is located, the taxes that would be imposed on | ||
the property if the unit adopted a tax rate equal to: | ||
(A) the no-new-taxes tax rate; and | ||
(B) the proposed tax rate; | ||
(9) for each school district in which the property is | ||
located, the taxes that would be imposed on the property if the unit | ||
adopted a tax rate equal to: | ||
(A) the rate to maintain the same amount of state | ||
and local revenue per weighted student that the district received | ||
in the school year beginning in the preceding tax year; and | ||
(B) the proposed tax rate; | ||
(10) for each taxing unit other than a school district | ||
in which the property is located, the difference between the amount | ||
calculated under Subdivision (8)(A) and the amount calculated under | ||
Subdivision (8)(B); | ||
(11) for each school district in which the property is | ||
located, the difference between the amount calculated under | ||
Subdivision (9)(A) and the amount calculated under Subdivision | ||
(9)(B); | ||
(12) the date and location of each public hearing, if | ||
applicable, on the proposed tax rate to be held by the governing | ||
body of each taxing unit in which the property is located; and | ||
(13) the date and location of the public meeting in | ||
which the tax rate will be adopted to be held by the governing body | ||
of each taxing unit in which the property is located. | ||
(c) The officer or employee designated by the governing body | ||
of each taxing unit to calculate the no-new-taxes tax rate and the | ||
rollback tax rate for the unit must electronically submit to the | ||
comptroller: | ||
(1) the information described by Subsection (b) as the | ||
information becomes available; and | ||
(2) the worksheets prepared under Section 26.04(d-1) | ||
at the same time the officer or employee submits the tax rates to | ||
the governing body of the unit under Section 26.04(e). | ||
(d) The comptroller shall deliver by e-mail to the | ||
designated officer or employee confirmation of receipt of the | ||
worksheets submitted under Subsection (c)(2). The comptroller | ||
shall incorporate the worksheets into the database and make them | ||
available to the public not later than the third day after the date | ||
the comptroller receives them. | ||
SECTION 4. Sections 25.19(b) and (i), Tax Code, are amended | ||
to read as follows: | ||
(b) The chief appraiser shall separate real from personal | ||
property and include in the notice for each: | ||
(1) a list of the taxing units in which the property is | ||
taxable; | ||
(2) the appraised value of the property in the | ||
preceding year; | ||
(3) the taxable value of the property in the preceding | ||
year for each taxing unit taxing the property; | ||
(4) the appraised value of the property for the | ||
current year, the kind and amount of each exemption and partial | ||
exemption, if any, approved for the property for the current year | ||
and for the preceding year, and, if an exemption or partial | ||
exemption that was approved for the preceding year was canceled or | ||
reduced for the current year, the amount of the exemption or partial | ||
exemption canceled or reduced; | ||
(5) [ |
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"The Texas Legislature does not set the amount of your local taxes. | ||
Your property tax burden is decided by your locally elected | ||
officials, and all inquiries concerning your taxes should be | ||
directed to those officials"; | ||
(6) [ |
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procedure for protesting the value; | ||
(7) [ |
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board will begin hearing protests; and | ||
(8) [ |
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of each taxing unit decides whether or not taxes on the property | ||
will increase and the appraisal district only determines the value | ||
of the property. | ||
(i) Delivery with a notice required by Subsection (a) or (g) | ||
of a copy of the pamphlet published by the comptroller under Section | ||
5.06 or a copy of the notice published by the chief appraiser under | ||
Section 41.70 is sufficient to comply with the requirement that the | ||
notice include the information specified by Subsection (b)(6) | ||
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SECTION 5. Sections 26.01(c) and (d), Tax Code, are amended | ||
to read as follows: | ||
(c) The chief appraiser shall prepare and certify to the | ||
assessor for each taxing unit a listing of those properties which | ||
are taxable by that unit but which are under protest and therefore | ||
not included on the appraisal roll approved by the appraisal review | ||
board and certified by the chief appraiser. This listing shall | ||
include the appraised market value, productivity value (if | ||
applicable), and taxable value as determined by the appraisal | ||
district and shall also include the market value, taxable value, | ||
and productivity value (if applicable) as claimed by the property | ||
owner filing the protest if available. If the property owner does | ||
not claim a value and the appraised value of the property in the | ||
current year is equal to or less than its value in the preceding | ||
year, the listing shall include a reasonable estimate of the market | ||
value, taxable value, and productivity value (if applicable) that | ||
would be assigned to the property if the taxpayer's claim is upheld. | ||
If the property owner does not claim a value and the appraised value | ||
of the property is higher than its appraised value in the preceding | ||
year, the listing shall include the appraised market value, | ||
productivity value (if applicable) and taxable value of the | ||
property in the preceding year, except that if there is a reasonable | ||
likelihood that the appraisal review board will approve a lower | ||
appraised value for the property than its appraised value in the | ||
preceding year, the chief appraiser shall make a reasonable | ||
estimate of the taxable value that would be assigned to the property | ||
if the property owner's claim is upheld. A school district [ |
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prescribed in Section [ |
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(d) The chief appraiser shall prepare and certify to the | ||
assessor for each taxing unit a list of those properties of which | ||
the chief appraiser has knowledge that are reasonably likely to be | ||
taxable by that unit but that are not included on the appraisal roll | ||
certified to the assessor under Subsection (a) or included on the | ||
listing certified to the assessor under Subsection (c). The chief | ||
appraiser shall include on the list for each property the market | ||
value, appraised value, and kind and amount of any partial | ||
exemptions as determined by the appraisal district for the | ||
preceding year and a reasonable estimate of the market value, | ||
appraised value, and kind and amount of any partial exemptions for | ||
the current year. Until the property is added to the appraisal | ||
roll, the assessor for the taxing unit shall include each property | ||
on the list in the calculations prescribed by Section [ |
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26.04 [ |
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district, shall for that purpose [ |
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value, appraised value, or taxable value, as appropriate, included | ||
on or computed using the information included on the list for the | ||
property. | ||
SECTION 6. Section 26.012(7), Tax Code, is amended to read | ||
as follows: | ||
(7) "Debt" means a bond, warrant, certificate of | ||
obligation, or other evidence of indebtedness owed by a taxing unit | ||
that has been approved at an election and is payable solely from | ||
property taxes in installments over a period of more than one year, | ||
not budgeted for payment from maintenance and operations funds, and | ||
secured by a pledge of property taxes, or a payment made under | ||
contract to secure indebtedness of a similar nature issued by | ||
another political subdivision on behalf of the taxing unit. | ||
SECTION 7. 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 [ |
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operations rate" means a rate expressed in dollars per $100 of | ||
taxable value and calculated according to the following formula: | ||
NO-NEW-TAXES [ |
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RATE = (LAST YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST | ||
YEAR'S JUNIOR COLLEGE LEVY) / (CURRENT TOTAL VALUE - | ||
NEW PROPERTY VALUE) | ||
SECTION 8. Chapter 26, Tax Code, is amended by adding | ||
Section 26.035 to read as follows: | ||
Sec. 26.035. CALCULATION OF NO-NEW-TAXES AND ROLLBACK TAX | ||
RATES OF TAXING UNIT OTHER THAN SCHOOL DISTRICT. (a) This section | ||
does not apply to a school district. | ||
(b) Notwithstanding Section 26.012, in this section: | ||
(1) "Actual collection rate" means the amount computed | ||
by dividing the total amount of taxes, including delinquent taxes | ||
and any penalties and interest on those taxes, collected between | ||
July 1 of a tax year and June 30 of the following tax year by the | ||
total amount of taxes levied in the tax year, expressed as a | ||
percentage. If the actual collection rate exceeds 100 percent, the | ||
rate may not be reduced to 100 percent. | ||
(2) "Adjustment for additional sales tax" means the | ||
rate expressed in dollars per $100 of taxable value computed by | ||
dividing the amount of additional sales and use tax revenue for the | ||
current tax year as determined under Section 26.041 by the current | ||
year total taxable value for rollback calculation. | ||
(3) "Adjustment for indigent health care" means the | ||
rate determined under Section 26.0441. | ||
(4) "Adjustment for state criminal justice mandate" | ||
means the rate determined under Section 26.044. | ||
(5) "Average collection rate" means the average of the | ||
actual collection rates for a taxing unit for the preceding three | ||
tax years. | ||
(6) "Current year debt rate" means a rate expressed in | ||
dollars per $100 of taxable value computed by: | ||
(A) adding debt service and excess collections; | ||
(B) multiplying the amount computed under | ||
Paragraph (A) by the average collection rate; and | ||
(C) dividing the amount computed under Paragraph | ||
(B) by the current year total taxable value for rollback | ||
calculation. | ||
(7) "Current year taxable value of homesteads subject | ||
to tax limitation" in the case of a county, municipality, or junior | ||
college district means the taxable value of residence homesteads | ||
that qualify for a limitation on taxes imposed by the county, | ||
municipality, or junior college district as provided by Section | ||
11.261 for the current tax year. | ||
(8) "Current year taxable value of new improvements" | ||
means the amount computed by adding: | ||
(A) the taxable value of new improvements to real | ||
property that were not on the appraisal roll for the preceding tax | ||
year; and | ||
(B) the difference between the taxable value of | ||
real property that is fully taxable in the current tax year but was | ||
not taxable wholly or partly in the preceding tax year because the | ||
real property was subject to a tax abatement agreement and the | ||
taxable value of the real property in the preceding tax year. | ||
(9) "Current year taxable value of property annexed" | ||
means the taxable value of real property and personal property | ||
located in territory annexed to a taxing unit after January 1 of the | ||
preceding tax year. | ||
(10) "Current year total taxable value" means the | ||
amount computed by adding the following applicable amounts: | ||
(A) the total taxable value of property listed on | ||
the certified appraisal roll for the current tax year, including | ||
all appraisal roll supplements and corrections, as of the date of | ||
the calculation; | ||
(B) the taxable value of properties under protest | ||
that are included on the list prepared by the chief appraiser under | ||
Section 26.01(c); | ||
(C) the taxable value of properties known to the | ||
chief appraiser that are included on the list prepared by the chief | ||
appraiser under Section 26.01(d); and | ||
(D) in the case of a county, the county's | ||
apportioned amount of the market value of rolling stock certified | ||
to the county assessor-collector by the comptroller under Section | ||
24.38. | ||
(11) "Current year total taxable value for rollback | ||
calculation" means the difference between the current year total | ||
taxable value and the current year taxable value of homesteads | ||
subject to tax limitation. | ||
(12) "No-new-taxes maintenance and operations rate" | ||
means a rate expressed in dollars per $100 of taxable value computed | ||
by: | ||
(A) dividing the maintenance and operations tax | ||
rate for the preceding tax year by the adopted tax rate for the | ||
preceding tax year; and | ||
(B) multiplying the amount computed under | ||
Paragraph (A) by the no-new-taxes tax rate for the current tax year. | ||
(13) "Preceding year taxable value in excess of new | ||
special appraisal" means, for real property that has qualified for | ||
special appraisal under Chapter 23 for the first time in the current | ||
tax year, the difference between the taxable value of the property | ||
in the preceding tax year and the taxable value of the property in | ||
the current tax year. | ||
(14) "Preceding year taxable value of homesteads | ||
subject to tax limitation" means, for a county, municipality, or | ||
junior college district, the taxable value of residence homesteads | ||
that qualified for a limitation on taxes imposed by the county, | ||
municipality, or junior college district as provided by Section | ||
11.261 for the preceding tax year. | ||
(15) "Preceding year taxable value of newly exempt | ||
real property" means the amount computed by adding: | ||
(A) in the case of real property that is wholly | ||
exempt from taxation for the first time in the current tax year, the | ||
taxable value of the real property in the preceding tax year; and | ||
(B) in the case of real property that is | ||
partially exempt from taxation in the current tax year, the | ||
difference between the amount of the value of the property that is | ||
exempt from taxation in the current tax year and the amount of the | ||
value of the property that was exempt from taxation in the preceding | ||
tax year. | ||
(16) "Preceding year taxable value of property | ||
disannexed" means the taxable value of property that was taxable in | ||
the preceding tax year but is not taxable in the current tax year | ||
because the property is located in territory that ceased to be a | ||
part of the taxing unit after January 1 of the preceding tax year. | ||
(17) "Preceding year total taxable value" means the | ||
total taxable value of property listed on the certified appraisal | ||
roll for the preceding tax year, including all appraisal roll | ||
supplements and corrections, as of the date of the calculation. | ||
Appraisal roll corrections include any adjustments to taxable value | ||
resulting from final court decisions regardless of whether the | ||
appraisal roll has been corrected under Section 42.41 as of the date | ||
of the calculation. | ||
(18) "Tax levy, adjusted for lost value," means the | ||
amount computed by: | ||
(A) subtracting from the preceding year total | ||
taxable value the sum of the following amounts: | ||
(i) the preceding year taxable value of | ||
homesteads subject to tax limitation; | ||
(ii) the preceding year taxable value of | ||
property disannexed; | ||
(iii) the preceding year taxable value of | ||
newly exempt real property; and | ||
(iv) the preceding year taxable value in | ||
excess of new special appraisal; | ||
(B) dividing the amount computed under Paragraph | ||
(A) by 100; and | ||
(C) multiplying the amount computed under | ||
Paragraph (B) by the tax rate for the preceding tax year. | ||
(19) "Taxable value, adjusted for new value," means | ||
the amount computed by subtracting from the current year total | ||
taxable value the sum of the following amounts: | ||
(A) the current year taxable value of homesteads | ||
subject to tax limitation; | ||
(B) the current year taxable value of property | ||
annexed; and | ||
(C) the current year taxable value of new | ||
improvements. | ||
(c) For purposes of Subsection (b)(10)(A), appraisal roll | ||
corrections include any adjustments to taxable value resulting from | ||
final court decisions, regardless of whether the appraisal roll has | ||
been corrected under Section 42.41 as of the date of the | ||
calculation. | ||
(d) For purposes of Subsections (b)(10)(B) and (C), the | ||
taxable value of property means the taxable value of the property as | ||
determined by the appraisal district rather than the value as | ||
claimed by the property owner or estimated by the chief appraiser. | ||
(e) The no-new-taxes tax rate of a taxing unit is the rate | ||
expressed in dollars per $100 of taxable value computed by dividing | ||
the tax levy, adjusted for lost value, by the taxable value, | ||
adjusted for new value. | ||
(f) The rollback tax rate of a taxing unit is the rate | ||
expressed in dollars per $100 of taxable value computed by: | ||
(1) adding the following rates: | ||
(A) the product of the no-new-taxes maintenance | ||
and operations rate and 1.05; | ||
(B) the current year debt rate; | ||
(C) the adjustment for state criminal justice | ||
mandate; and | ||
(D) the adjustment for indigent health care; and | ||
(2) subtracting from the rate computed under | ||
Subdivision (1) the adjustment for additional sales tax. | ||
SECTION 9. 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 [ |
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SECTION 10. Section 26.04, Tax Code, is amended by amending | ||
Subsections (c), (d), (e), (f), (g), (i), and (j) and adding | ||
Subsections (d-1) and (e-2) to read as follows: | ||
(c) An officer or employee designated by the governing body | ||
shall calculate the no-new-taxes [ |
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rollback tax rate for the unit, where: | ||
(1) "No-new-taxes tax rate" means: | ||
(A) for a taxing unit other than a school | ||
district, the no-new-taxes tax rate calculated under Section | ||
26.035; and | ||
(B) for a school district, [ |
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calculated according to the following formula: | ||
NO-NEW-TAXES [ |
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LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW | ||
PROPERTY VALUE) | ||
; and | ||
(2) "Rollback tax rate" means: | ||
(A) for a taxing unit other than a school | ||
district, the rollback tax rate calculated under Section 26.035; | ||
and | ||
(B) for a school district, the rate calculated | ||
under Section 26.08. [ |
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(d) The no-new-taxes [ |
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the sum of the no-new-taxes [ |
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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) The designated officer or employee shall calculate | ||
the no-new-taxes tax rate and the rollback tax rate for the taxing | ||
unit using the forms prescribed by the comptroller under Section | ||
5.07(f). | ||
(e) By August 7 or as soon thereafter as practicable, the | ||
designated officer or employee shall submit the rates to the | ||
governing body. The designated officer or employee [ |
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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 [ |
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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 [ |
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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 a [ |
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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 a [ |
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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-2) By August 7 or as soon thereafter as practicable, the | ||
county assessor-collector for each county shall deliver by regular | ||
mail or e-mail to each owner of property located in the county and | ||
shall post in a conspicuous place on the home page of the Internet | ||
website of the county assessor-collector a notice that the | ||
estimated amount of taxes to be imposed on the owner's property by | ||
each taxing unit in which the property is located may be found in | ||
the property tax database maintained by the comptroller under | ||
Section 5.092. The notice must include: | ||
(1) the address of the Internet website at which the | ||
information may be found; | ||
(2) a statement that the property owner may request a | ||
written copy of the information from the assessor for each taxing | ||
unit in which the property is located; and | ||
(3) the address and telephone number of each assessor | ||
from whom the written copy may be requested. | ||
(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 | ||
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(g) A person who owns taxable property is entitled to an | ||
injunction prohibiting the taxing unit in which the property is | ||
taxable from adopting a tax rate if the assessor or designated | ||
officer or employee of the unit, as applicable, has not complied | ||
with the computation or publication requirements of this section or | ||
Section 5.092(c) [ |
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(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 [ |
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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 | ||
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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 [ |
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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 [ |
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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 11. The heading to Section 26.041, Tax Code, is | ||
amended to read as follows: | ||
Sec. 26.041. CALCULATION OF [ |
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ADDITIONAL SALES AND USE TAX REVENUE. | ||
SECTION 12. Sections 26.041(d), (g), and (h), Tax Code, are | ||
amended to read as follows: | ||
(d) In order to determine the amount of additional sales and | ||
use tax revenue for the current tax year for purposes of calculating | ||
the adjustment for additional sales tax under Section 26.035 [ |
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use the sales and use tax revenue for the last preceding four | ||
quarters for which the information is available as the basis for | ||
projecting the additional sales and use tax revenue for the current | ||
tax year. If the rate of the additional sales and use tax is | ||
increased or reduced, the projection to be used for the first tax | ||
year after the effective date of the sales and use tax change shall | ||
be adjusted to exclude any revenue gained or lost because of the | ||
sales and use tax rate change. If the unit did not impose an | ||
additional sales and use tax for the last preceding four quarters, | ||
the designated officer or employee shall request the comptroller of | ||
public accounts to provide to the officer or employee a report | ||
showing the estimated amount of taxable sales and uses within the | ||
unit for the previous four quarters as compiled by the comptroller, | ||
and the comptroller shall comply with the request. The officer or | ||
employee shall prepare the estimate of the additional sales and use | ||
tax revenue for the first year of the imposition of the tax by | ||
multiplying the amount reported by the comptroller by the | ||
appropriate additional sales and use tax rate and by multiplying | ||
that product by .95. | ||
(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) [ |
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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 rate. In the first year in which an additional sales and use | ||
tax rate is increased, the amount of additional sales and use tax | ||
revenue calculated under this section must include [ |
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be generated as a result of the increase in the additional sales and | ||
use tax rate [ |
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(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) [ |
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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 rate. | ||
In the first year in which an additional sales and use tax rate is | ||
decreased, the amount of additional sales and use tax revenue | ||
calculated under this section may not include [ |
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as a result of the decrease in the additional sales and use tax rate | ||
[ |
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SECTION 13. The heading to Section 26.043, Tax Code, is | ||
amended to read as follows: | ||
Sec. 26.043. ROLLBACK AND NO-NEW-TAXES [ |
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RATES [ |
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SECTION 14. 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 [ |
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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 [ |
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tax rate refers to that rate as adjusted under this section. | ||
SECTION 15. Section 26.044, Tax Code, is amended to read as | ||
follows: | ||
Sec. 26.044. ROLLBACK [ |
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CRIMINAL JUSTICE MANDATE. (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 adjustment for state | ||
criminal justice mandate under Section 26.035 is the rate expressed | ||
in dollars per $100 of taxable value calculated by dividing the | ||
state criminal justice mandate by the current year total taxable | ||
value for rollback calculation. [ |
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(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 adjustment | ||
for state criminal justice mandate under Section 26.035 is the rate | ||
expressed in dollars per $100 of taxable value calculated by: | ||
(1) subtracting the previous year's state criminal | ||
justice mandate from the state criminal justice mandate for the | ||
current year; and | ||
(2) dividing the amount computed under Subdivision (1) | ||
by the current year total taxable value for rollback calculation. | ||
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(c) The county shall include a notice of the increase in the | ||
rollback tax [ |
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of the adjustment for state criminal justice mandate [ |
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criminal justice mandate, in the information published under | ||
Section 26.04(e) and, if applicable, Section 26.06(b) [ |
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(d) In this section: | ||
(1) "Adjustment for state criminal justice mandate" | ||
and "current year total taxable value for rollback calculation" | ||
have the meanings assigned by Section 26.035. | ||
(2) "State[ |
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the amount spent by the county in the previous 12 months providing | ||
for the maintenance and operation cost of keeping inmates in | ||
county-paid facilities after they have been sentenced to the Texas | ||
Department of Criminal Justice as certified by the county auditor | ||
based on information provided by the county sheriff, minus the | ||
amount received from state revenue for reimbursement of such costs. | ||
SECTION 16. Section 26.0441, Tax Code, is amended to read as | ||
follows: | ||
Sec. 26.0441. ROLLBACK TAX RATE ADJUSTMENT FOR INDIGENT | ||
HEALTH CARE. (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 adjustment for indigent health care under Section 26.035 | ||
is the rate expressed in dollars per $100 of taxable value | ||
calculated by dividing the enhanced indigent health care | ||
expenditures by the current year total taxable value for rollback | ||
calculation. [ |
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(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 adjustment for indigent health | ||
care under Section 26.035 is the rate expressed in dollars per $100 | ||
of taxable value calculated by: | ||
(1) subtracting the preceding tax year's enhanced | ||
indigent health care expenditures from the current tax year's | ||
enhanced indigent health care expenditures; and | ||
(2) dividing the amount computed under Subdivision (1) | ||
by the current year total taxable value for rollback calculation. | ||
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(c) The taxing unit shall include a notice of the increase | ||
in its rollback tax [ |
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a result of the adjustment for indigent health care [ |
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enhanced indigent health care expenditures, in the information | ||
published under Section 26.04(e) and, if applicable, Section | ||
26.06(b). | ||
(d) In this section: | ||
(1) "Adjustment for indigent health care" and "current | ||
year total taxable value for rollback calculation" have the | ||
meanings assigned by Section 26.035. | ||
(2) "Enhanced[ |
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expenditures" for a tax year means the amount spent by the taxing | ||
unit for the maintenance and operation costs of providing indigent | ||
health care at the increased minimum eligibility standards | ||
established under Section 61.006, Health and Safety Code, effective | ||
on or after January 1, 2000, in the period beginning on July 1 of the | ||
year preceding the tax year for which the tax is adopted and ending | ||
on June 30 of the tax year for which the tax is adopted, less the | ||
amount of state assistance received by the taxing unit in | ||
accordance with Chapter 61, Health and Safety Code, that is | ||
attributable to those costs. | ||
SECTION 17. Section 26.05, Tax Code, is amended by adding | ||
Subsections (a-1), (d-1), (d-2), (e-1), and (e-2) and amending | ||
Subsections (b), (c), (d), and (g) to read as follows: | ||
(a-1) This subsection applies only to a taxing unit that | ||
imposes an additional sales and use tax. For purposes of Subsection | ||
(a)(2), the amount needed to fund maintenance and operation | ||
expenditures of the taxing unit for the next year is reduced by the | ||
amount, if any, by which the amount of additional sales and use tax | ||
revenue that will be generated by the additional sales and use tax | ||
in the current tax year as calculated under Section 26.041 exceeds | ||
the amount published under Section 26.04(e)(3)(C). | ||
(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 [ |
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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 [ |
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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 [ |
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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 [ |
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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 | ||
[ |
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statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT | ||
PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-TAXES | ||
[ |
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TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY | ||
APPROXIMATELY $(Insert amount)."; and | ||
(2) include on the home page of the [ |
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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 | ||
[ |
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statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT | ||
PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-TAXES | ||
[ |
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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 [ |
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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 [ |
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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 | ||
[ |
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complies with Section 26.06. | ||
(d-1) The governing body of a taxing unit may not hold a | ||
public hearing on a proposed tax rate or a public meeting to adopt a | ||
tax rate until the 14th day after the date the officer or employee | ||
designated by the governing body of the unit to calculate the | ||
no-new-taxes tax rate and the rollback tax rate for the unit | ||
electronically submits to the comptroller the information | ||
described by Section 5.092(c). | ||
(d-2) Notwithstanding Subsection (a), the governing body of | ||
a taxing unit other than a school district may not adopt a tax rate | ||
until: | ||
(1) the comptroller has included the information for | ||
the current tax year specified by Section 5.092 in the | ||
comptroller's property tax database; and | ||
(2) the county assessor-collector for each county in | ||
which all or part of the territory of the taxing unit is located has | ||
delivered the notice required by Section 26.04(e-2). | ||
(e-1) The governing body of a taxing unit that imposes an | ||
additional sales and use tax may not adopt a tax rate until the | ||
chief financial officer or auditor for the unit submits to the | ||
governing body of the unit a written certification that: | ||
(1) 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; and | ||
(2) if applicable, the amount by which the amount of | ||
additional sales and use tax revenue that will be generated by the | ||
additional sales and use tax in the current tax year as calculated | ||
under Section 26.041 exceeds the amount published under Section | ||
26.04(e)(3)(C) has been deducted from the amount needed to fund | ||
maintenance and operation expenditures of the unit for the next | ||
year as required by Subsection (a-1) of this section. | ||
(e-2) The comptroller shall adopt rules governing the form | ||
of the certification required by Subsection (e-1) 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 [ |
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and the rollback tax rate of the district shall be calculated based | ||
on the certified estimate of taxable value. | ||
SECTION 18. 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 [ |
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provided by Section 26.04, a statement substantially identical to | ||
the following: "The proposed tax rate would increase total taxes in | ||
(name of taxing unit) by (percentage by which the proposed tax rate | ||
exceeds the no-new-taxes [ |
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SECTION 19. Sections 26.06(b), (c), (d), and (e), Tax Code, | ||
are amended to read as follows: | ||
(b) The notice of a public hearing may not be smaller than | ||
one-quarter page of a standard-size or a tabloid-size newspaper, | ||
and the headline on the notice must be in 24-point or larger type. | ||
The notice must contain a statement in the following form: | ||
"NOTICE OF PUBLIC HEARING ON TAX INCREASE | ||
"The (name of the taxing unit) will hold two public hearings | ||
on a proposal to increase total tax revenues from properties on the | ||
tax roll in the preceding tax year by (percentage by which proposed | ||
tax rate exceeds lower of rollback tax rate or no-new-taxes | ||
[ |
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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 no-new-taxes [ |
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this year of $____ (no-new-taxes [ |
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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." | ||
(c) The notice of a public hearing under this section may be | ||
delivered by mail to each property owner in the unit, or may be | ||
published in a newspaper. If the notice is published in a | ||
newspaper, it may not be in the part of the paper in which legal | ||
notices and classified advertisements appear. The [ |
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Internet website operated by the taxing unit from the date the | ||
notice is first published until the second public hearing is | ||
concluded. | ||
(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 [ |
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percent. | ||
"The total tax revenue proposed to be raised last year at last | ||
year's tax rate of (insert tax rate for the preceding year) for each | ||
$100 of taxable value was (insert total amount of taxes imposed in | ||
the preceding year). | ||
"The total tax revenue proposed to be raised this year at the | ||
proposed tax rate of (insert proposed tax rate) for each $100 of | ||
taxable value, excluding tax revenue to be raised from new property | ||
added to the tax roll this year, is (insert amount computed by | ||
multiplying proposed tax rate by the difference between current | ||
total value and new property value). | ||
"The total tax revenue proposed to be raised this year at the | ||
proposed tax rate of (insert proposed tax rate) for each $100 of | ||
taxable value, including tax revenue to be raised from new property | ||
added to the tax roll this year, is (insert amount computed by | ||
multiplying proposed tax rate by current total value). | ||
"The (governing body of the taxing unit) is scheduled to vote | ||
on the tax rate that will result in that tax increase at a public | ||
meeting to be held on (date of meeting) at (location of meeting, | ||
including mailing address) at (time of meeting). | ||
"The (governing body of the taxing unit) proposes to use the | ||
increase in total tax revenue for the purpose of (description of | ||
purpose of increase)." | ||
(e) The meeting to vote on the tax increase may not be | ||
earlier than the third day or later than the 14th day after the date | ||
of the second public hearing. The meeting must be held inside the | ||
boundaries of the taxing unit in a publicly owned building or, if a | ||
suitable publicly owned building is not available, in a suitable | ||
building to which the public normally has access. If the governing | ||
body does not adopt a tax rate that exceeds the lower of the | ||
rollback tax rate or the no-new-taxes [ |
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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 [ |
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SECTION 20. Section 26.065(b), Tax Code, is amended to read | ||
as follows: | ||
(b) The taxing [ |
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public hearing on the Internet website owned, operated, or | ||
controlled by the unit continuously for at least seven days | ||
immediately before the public hearing on the proposed tax rate | ||
increase and at least seven days immediately before the date of the | ||
vote proposing the increase in the tax rate. | ||
SECTION 21. Sections 26.08(g), (n), and (p), Tax Code, are | ||
amended to read as follows: | ||
(g) In a school district that received distributions from an | ||
equalization tax imposed under former Chapter 18, Education Code, | ||
the no-new-taxes [ |
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county unit system's abolition is added to the district's rollback | ||
tax rate. | ||
(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 [ |
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maintenance and operations tax rate of the district as computed | ||
under Subsection (i) [ |
||
(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 | ||
[ |
||
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 [ |
||
rate for that preceding tax year. | ||
SECTION 22. 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 | ||
[ |
||
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 23. Section 26.16, Tax Code, is amended by amending | ||
Subsections (a) and (d) and adding Subsection (a-1) to read as | ||
follows: | ||
(a) Each county shall maintain an Internet website. The | ||
county assessor-collector for each county [ |
||
|
||
[ |
||
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 [ |
||
(5) the no-new-taxes [ |
||
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 [ |
||
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 [ |
||
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. 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 | ||
the district wishes to adopt a tax rate in excess of the district's | ||
rollback tax rate." | ||
SECTION 24. Section 321.106(e), Tax Code, is amended to | ||
read as follows: | ||
(e) If, in a municipality where a fire control, prevention, | ||
and emergency medical services district is composed of the whole | ||
municipality, a municipal sales and use tax or a municipal sales and | ||
use tax rate increase for the purpose of financing a fire control, | ||
prevention, and emergency medical services district is approved, | ||
the municipality is responsible for distributing to the district | ||
that portion of the municipal sales and use tax revenue received | ||
from the comptroller that is to be used for the purposes of | ||
financing the fire control, prevention, and emergency medical | ||
services district. Not later than the 10th day after the date the | ||
municipality receives money under this section from the | ||
comptroller, the municipality shall make the distribution in the | ||
proportion that the fire control, prevention, and emergency medical | ||
services portion of the tax rate bears to the total sales and use | ||
tax rate of the municipality. The amounts distributed to a fire | ||
control, prevention, and emergency medical services district are | ||
not considered to be sales and use tax revenue for the purpose of | ||
computations [ |
||
|
||
SECTION 25. Section 321.108(f), Tax Code, is amended to | ||
read as follows: | ||
(f) If, in a municipality in which a crime control and | ||
prevention district is composed of the whole municipality, a | ||
municipal sales and use tax or a municipal sales and use tax rate | ||
increase for the purpose of financing a crime control and | ||
prevention district is approved, the municipality is responsible | ||
for distributing to the district that portion of the municipal | ||
sales and use tax revenue received from the comptroller that is to | ||
be used for the purposes of financing the crime control and | ||
prevention district. Not later than the 10th day after the date | ||
the municipality receives money under this section from the | ||
comptroller, the municipality shall make the distribution in the | ||
proportion that the crime control and prevention portion of the tax | ||
rate bears to the total sales and use tax rate of the | ||
municipality. The amounts distributed to a crime control and | ||
prevention district are not considered to be additional municipal | ||
sales and use tax revenue for the purpose of computations [ |
||
|
||
Section 26.041. | ||
SECTION 26. Section 323.105(f), Tax Code, is amended to | ||
read as follows: | ||
(f) If, in a county where a crime control and prevention | ||
district is composed of the whole county, a county sales and use tax | ||
or a county sales and use tax rate increase for the purpose of | ||
financing a crime control and prevention district is approved, the | ||
county is responsible for distributing to the district that portion | ||
of the county sales and use tax revenue received from the | ||
comptroller that is to be used for the purposes of financing the | ||
crime control and prevention district. Not later than the 10th day | ||
after the date the county receives funds under this section from the | ||
comptroller, the county shall make the distribution in the | ||
proportion that the crime control and prevention portion of the tax | ||
rate bears to the total sales and use tax rate of the county. The | ||
amounts distributed to a crime control and prevention district are | ||
not considered to be sales and use tax revenue for the purpose of | ||
computations [ |
||
|
||
SECTION 27. 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 [ |
||
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 28. 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 [ |
||
(C) the no-new-taxes [ |
||
operations tax rate; | ||
(D) the rollback tax rate; and | ||
(E) the debt rate; and | ||
(4) the total amount of municipal debt obligations. | ||
SECTION 29. 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 [ |
||
(C) the no-new-taxes [ |
||
operations tax rate; | ||
(D) the rollback tax rate; and | ||
(E) the debt rate; and | ||
(4) the total amount of county debt obligations. | ||
SECTION 30. 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 [ |
||
(C) the no-new-taxes [ |
||
operations tax rate; | ||
(D) the rollback tax rate; and | ||
(E) the debt rate; and | ||
(4) the total amount of county debt obligations. | ||
SECTION 31. 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 [ |
||
(C) the no-new-taxes [ |
||
operations tax rate; | ||
(D) the rollback tax rate; and | ||
(E) the debt rate; and | ||
(4) the total amount of county debt obligations. | ||
SECTION 32. Sections 140.010(a), (d), and (e), Local | ||
Government Code, are amended to read as follows: | ||
(a) In this section, "no-new-taxes [ |
||
and "rollback tax rate" mean the no-new-taxes [ |
||
and rollback tax rate of a county or municipality, as applicable, as | ||
calculated under Chapter 26, Tax Code. | ||
(d) A county or municipality that proposes a property tax | ||
rate that does not exceed the lower of the no-new-taxes [ |
||
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 | ||
NO-NEW-TAXES [ |
||
"The no-new-taxes [ |
||
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[ |
||
(e) A county or municipality that proposes a property tax | ||
rate that exceeds the lower of the no-new-taxes [ |
||
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 no-new-taxes | ||
[ |
||
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 | ||
NO-NEW-TAXES [ |
||
ROLLBACK TAX RATE $______ per $100 | ||
"The no-new-taxes [ |
||
to raise the same amount of property tax revenue for (insert name of | ||
county or municipality) from the same properties in both the | ||
(insert preceding tax year) tax year and the (insert current tax | ||
year) tax year. | ||
"The rollback tax rate is the highest tax rate that (insert name of | ||
county or municipality) may adopt before voters are entitled to | ||
petition for an election to limit the rate that may be approved to | ||
the rollback rate. | ||
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS | ||
FOLLOWS: | ||
property tax amount = (rate) x (taxable value of your property) / | ||
100 | ||
"For assistance or detailed information about tax calculations, | ||
please contact: | ||
(insert name of county or municipal tax assessor-collector) | ||
(insert name of county or municipality) tax | ||
assessor-collector | ||
(insert address) | ||
(insert telephone number) | ||
(insert e-mail address) | ||
(insert Internet website address[ |
||
"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 33. The following provisions are repealed: | ||
(1) Section 26.03, Tax Code; | ||
(2) Sections 26.041(a), (b), (c), and (e), Tax Code; | ||
and | ||
(3) Section 26.045, Tax Code. | ||
SECTION 34. (a) Not later than September 1, 2019, the | ||
comptroller shall appoint the members of an advisory group to | ||
provide to the comptroller advice and assistance regarding the | ||
creation and operation of the property tax database required by | ||
Section 5.092, Tax Code, as added by this Act, and related matters. | ||
The advisory group is composed of 13 members as follows: | ||
(1) one person who is an employee of the office of the | ||
lieutenant governor; | ||
(2) one person who is an employee of the office of the | ||
speaker of the house of representatives; | ||
(3) four persons who are county tax | ||
assessor-collectors; | ||
(4) two persons who are assessors or collectors for | ||
taxing units but are not county tax assessor-collectors; | ||
(5) two persons who are chief appraisers of appraisal | ||
districts; | ||
(6) one person who is a financial officer or auditor of | ||
a municipality; | ||
(7) one person who is a financial officer or auditor of | ||
a county; and | ||
(8) one person who is a representative of water | ||
districts. | ||
(b) The advisory group is abolished and this section expires | ||
December 31, 2021. | ||
SECTION 35. The comptroller shall comply with Sections | ||
5.07(f) and 5.092, Tax Code, as added by this Act, not later than | ||
June 1, 2020. | ||
SECTION 36. (a) Except as provided by Subsections (b), (c), | ||
and (d) of this section, this Act takes effect January 1, 2018. | ||
(b) The following provisions take effect December 1, 2017: | ||
(1) Section 5.091, Tax Code, as amended by this Act; | ||
(2) Section 34 of this Act; and | ||
(3) Section 26.065(b), Tax Code, as amended by this | ||
Act. | ||
(c) The following provisions take effect September 1, 2019: | ||
(1) Section 5.07(f), Tax Code, as added by this Act; | ||
and | ||
(2) Section 5.092, Tax Code, as added by this Act. | ||
(d) The following provisions take effect January 1, 2020: | ||
(1) Sections 25.19(b) and (i), Tax Code, as amended by | ||
this Act; | ||
(2) Sections 26.04(d-1) and (e-2), Tax Code, as added | ||
by this Act; | ||
(3) Section 26.04(g), Tax Code, as amended by this | ||
Act; and | ||
(4) Sections 26.05(d-1) and (d-2), Tax Code, as added | ||
by this Act. |