85S11047 SMH-F
 
  By: Bettencourt S.B. No. 93
 
 
 
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.  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[, other than a school
  district, if the tax rate is reported to the comptroller,] for the
  year [preceding the year] in which the list is prepared. The
  comptroller shall list the tax rates alphabetically according to:
               (1)  the county or counties in which each taxing unit is
  located; and
               (2)  the name of each taxing unit [in descending
  order].
         (b)  Not later than January 1 [December 31] of the following
  [each] year, the comptroller shall publish on the comptroller's
  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)  [if the appraised value is greater than it was in
  the preceding year, the amount of tax that would be imposed on the
  property on the basis of the tax rate for the preceding year;
               [(6)]  in italic typeface, the following statement:
  "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) [(7)]  a detailed explanation of the time and
  procedure for protesting the value;
               (7) [(8)]  the date and place the appraisal review
  board will begin hearing protests; and
               (8) [(9)]  a brief explanation that the governing body
  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)
  [(b)(7)] or (g)(3), as applicable.
         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 [The
  taxing unit] shall use the lower value for calculations as
  prescribed in Section [Sections] 26.04 [and 26.041 of this code].
         (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 [Sections]
  26.04 [and 26.041], and, in the case of the assessor for a school
  district, shall for that purpose [shall] use the lower market
  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 [(9) "Effective] maintenance and
  operations rate" means a rate expressed in dollars per $100 of
  taxable value and calculated according to the following formula:
  NO-NEW-TAXES [EFFECTIVE] MAINTENANCE AND OPERATIONS
  RATE = (LAST YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST
  YEAR'S JUNIOR COLLEGE LEVY) / (CURRENT TOTAL VALUE -
  NEW PROPERTY VALUE)
         SECTION 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 [EFFECTIVE] AND ROLLBACK TAX RATES.
         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 [effective] tax rate and the
  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, ["Effective tax rate"
  means] a rate expressed in dollars per $100 of taxable value
  calculated according to the following formula:
         NO-NEW-TAXES [EFFECTIVE] TAX RATE = (LAST YEAR'S LEVY -
  LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
  PROPERTY VALUE)
         ; and
               (2)  "Rollback tax rate" means:
                     (A)  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. [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 1.08) + CURRENT DEBT RATE]
         (d)  The no-new-taxes [effective] tax rate for a county is
  the sum of the no-new-taxes [effective] tax rates calculated for
  each type of tax the county levies and the rollback tax rate for a
  county is the sum of the rollback tax rates calculated for each type
  of tax the county levies.
         (d-1)  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 [He] shall
  deliver by mail to each property owner in the unit or publish in a
  newspaper in the form prescribed by the comptroller:
               (1)  the no-new-taxes [effective] tax rate, the
  rollback tax rate, and an explanation of how they were calculated;
               (2)  the estimated amount of interest and sinking fund
  balances and the estimated amount of maintenance and operation or
  general fund balances remaining at the end of the current fiscal
  year that are not encumbered with or by corresponding existing debt
  obligation;
               (3)  a schedule of the unit's debt obligations showing:
                     (A)  the amount of principal and interest that
  will be paid to service the unit's debts in the next year from
  property tax revenue, including payments of lawfully incurred
  contractual obligations providing security for the payment of the
  principal of and interest on bonds and other evidences of
  indebtedness issued on behalf of the unit by another political
  subdivision and, if the unit is created under Section 52, Article
  III, or Section 59, Article XVI, Texas Constitution, payments on
  debts that the unit anticipates to incur in the next calendar year;
                     (B)  the amount by which taxes imposed for debt
  are to be increased because of the unit's anticipated collection
  rate; and
                     (C)  the total of the amounts listed in Paragraphs
  (A)-(B), less any amount collected in excess of the previous year's
  anticipated collections certified as provided in Subsection (b);
               (4)  the amount of additional sales and use tax revenue
  anticipated in calculations under Section 26.041;
               (5)  a statement that the adoption of a tax rate equal
  to the no-new-taxes [effective] tax rate would result in an
  increase or decrease, as applicable, in the amount of taxes imposed
  by the unit as compared to last year's levy, and the amount of the
  increase or decrease;
               (6)  in a [the] year in which [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 a [the] year in which a
  taxing unit raised its rollback tax rate as required by Subsection
  (j), a schedule that includes the following elements:
                     (A)  the amount of property tax revenue spent by
  the unit to operate the department, function, or activity for which
  the taxing unit raised the rollback tax rate as required by
  Subsection (j) for the 12 months preceding the month in which the
  calculations required by this chapter are made; and
                     (B)  the amount published by the unit in the
  preceding tax year under Subdivision (6)(B).
         (e-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
  [effective] and rollback tax rates under this section.
         (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) [and the failure to comply was not in good faith].
         (i)  This subsection applies to a taxing unit that has agreed
  by written contract to transfer a distinct department, function, or
  activity to another taxing unit and discontinues operating that
  distinct department, function, or activity if the operation of that
  department, function, or activity in all or a majority of the
  territory of the taxing unit is continued by another existing
  taxing unit or by a new taxing unit. The rollback tax rate of a
  taxing unit to which this subsection applies in the first tax year
  in which a budget is adopted that does not allocate revenue to the
  discontinued department, function, or activity is calculated as
  otherwise provided by this section, except that last year's levy
  used to calculate the no-new-taxes [effective] maintenance and
  operations rate of the unit is reduced by the amount of maintenance
  and operations tax revenue spent by the taxing unit to operate the
  department, function, or activity for the 12 months preceding the
  month in which the calculations required by this chapter are made
  and in which the unit operated the discontinued department,
  function, or activity. If the unit did not operate that department,
  function, or activity for the full 12 months preceding the month in
  which the calculations required by this chapter are made, the unit
  shall reduce last year's levy used for calculating the no-new-taxes
  [effective] maintenance and operations rate of the unit by the
  amount of the revenue spent in the last full fiscal year in which
  the unit operated the discontinued department, function, or
  activity.
         (j)  This subsection applies to a taxing unit that had agreed
  by written contract to accept the transfer of a distinct
  department, function, or activity from another taxing unit and
  operates a distinct department, function, or activity if the
  operation of a substantially similar department, function, or
  activity in all or a majority of the territory of the taxing unit
  has been discontinued by another taxing unit, including a dissolved
  taxing unit. The rollback tax rate of a taxing unit to which this
  subsection applies in the first tax year after the other taxing unit
  discontinued the substantially similar department, function, or
  activity in which a budget is adopted that allocates revenue to the
  department, function, or activity is calculated as otherwise
  provided by this section, except that last year's levy used to
  calculate the no-new-taxes [effective] maintenance and operations
  rate of the unit is increased by the amount of maintenance and
  operations tax revenue spent by the taxing unit that discontinued
  operating the substantially similar department, function, or
  activity to operate that department, function, or activity for the
  12 months preceding the month in which the calculations required by
  this chapter are made and in which the unit operated the
  discontinued department, function, or activity. If the unit did
  not operate the discontinued department, function, or activity for
  the full 12 months preceding the month in which the calculations
  required by this chapter are made, the unit may increase last year's
  levy used to calculate the no-new-taxes [effective] maintenance and
  operations rate by an amount not to exceed the amount of property
  tax revenue spent by the discontinuing unit to operate the
  discontinued department, function, or activity in the last full
  fiscal year in which the discontinuing unit operated the
  department, function, or activity.
         SECTION 11.  The heading to Section 26.041, Tax Code, is
  amended to read as follows:
         Sec. 26.041.  CALCULATION OF [TAX RATE OF UNIT IMPOSING]
  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 [this
  section], the designated officer or employee of a taxing unit shall
  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) [of this
  section], of the revenue generated by the additional sales and use
  tax in the following year. The first projection must take into
  account the increase and the second projection must not take into
  account the increase. The officer or employee shall then subtract
  the amount of the result of the second projection from the amount of
  the result of the first projection to determine the revenue
  generated as a result of the increase in the additional sales and
  use tax 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 [effective tax
  rate for the unit is the effective tax rate before the increase
  minus a number the numerator of which is] the revenue projected to
  be generated as a result of the increase in the additional sales and
  use tax rate [, as determined under this subsection, and the
  denominator of which is the current total value minus the new
  property value].
         (h)  If the rate of the additional sales and use tax is
  decreased, the designated officer or employee shall make two
  projections, in the manner provided by Subsection (d) [of this
  section], of the revenue generated by the additional sales and use
  tax in the following year. The first projection must take into
  account the decrease and the second projection must not take into
  account the decrease. The officer or employee shall then subtract
  the amount of the result of the first projection from the amount of
  the result of the second projection to determine the revenue lost as
  a result of the decrease in the additional sales and use tax 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 [effective tax rate
  for the unit is the effective tax rate before the decrease plus a
  number the numerator of which is] the revenue projected to be lost
  as a result of the decrease in the additional sales and use tax rate
  [, as determined under this subsection, and the denominator of
  which is the current total value minus the new property value].
         SECTION 13.  The heading to Section 26.043, Tax Code, is
  amended to read as follows:
         Sec. 26.043.  ROLLBACK AND NO-NEW-TAXES [EFFECTIVE] TAX
  RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
         SECTION 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 [effective] tax rates the
  amount that, if applied to the city's current total value, would
  impose an amount equal to the amount of property taxes budgeted in
  the current tax year to pay for expenses related to mass transit
  services.
         (b)  In a tax year to which this section applies, a reference
  in this chapter to the city's no-new-taxes [effective] or rollback
  tax rate refers to that rate as adjusted under this section.
         SECTION 15.  Section 26.044, Tax Code, is amended to read as
  follows:
         Sec. 26.044.  ROLLBACK [EFFECTIVE] TAX RATE TO PAY FOR STATE
  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. [effective maintenance and
  operation rate for the county is increased by the rate calculated
  according to the following formula:
         [(State Criminal Justice Mandate) / (Current Total
  Value - New Property Value)]
         (b)  In the second and subsequent years that a county adopts
  a tax rate, if the amount spent by the county for the state criminal
  justice mandate increased over the previous year, the 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.
  [effective maintenance and operation rate for the county is
  increased by the rate calculated according to the following
  formula:
         [(This Year's State Criminal Justice Mandate -
  Previous Year's State Criminal Justice Mandate) /
  (Current Total Value - New Property Value)]
         (c)  The county shall include a notice of the increase in the
  rollback tax [effective maintenance and operation] rate as a result
  of the adjustment for state criminal justice mandate [provided by
  this section], including a description and the amount of the state
  criminal justice mandate, in the information published under
  Section 26.04(e) and, if applicable, Section 26.06(b) [of this
  code].
         (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[, "state] criminal justice mandate" means
  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. [effective maintenance and operations rate for the
  taxing unit is increased by the rate computed according to the
  following formula:
         [Amount of Increase = Enhanced Indigent Health Care
  Expenditures / (Current Total Value - New Property
  Value)]
         (b)  In each subsequent tax year, if the taxing unit's
  enhanced indigent health care expenses exceed the amount of those
  expenses for the preceding year, the 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.
  [effective maintenance and operations rate for the taxing unit is
  increased by the rate computed according to the following formula:
         [Amount of Increase = (Current Tax Year's Enhanced
  Indigent Health Care Expenditures - Preceding Tax
  Year's Indigent Health Care Expenditures) / (Current
  Total Value - New Property Value)]
         (c)  The taxing unit shall include a notice of the increase
  in its rollback tax [effective maintenance and operations] rate as
  a result of the adjustment for indigent health care [provided by
  this section], including a brief description and the amount of the
  enhanced indigent health care expenditures, in the information
  published under Section 26.04(e) and, if applicable, Section
  26.06(b).
         (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[, "enhanced] indigent health care
  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 [effective] tax rate must be a record vote, and at
  least 60 percent of the members of the governing body must vote in
  favor of the ordinance, resolution, or order. For a school
  district, the vote on the ordinance, resolution, or order setting a
  tax rate that exceeds the sum of the no-new-taxes [effective]
  maintenance and operations tax rate of the district as determined
  under Section 26.08(i) and the district's current debt rate must be
  a record vote, and at least 60 percent of the members of the
  governing body must vote in favor of the ordinance, resolution, or
  order. A motion to adopt an ordinance, resolution, or order setting
  a tax rate that exceeds the no-new-taxes [effective] tax rate must
  be made in the following form: "I move that the property tax rate be
  increased by the adoption of a tax rate of (specify tax rate), which
  is effectively a (insert percentage by which the proposed tax rate
  exceeds the no-new-taxes [effective] tax rate) percent increase in
  the tax rate." If the ordinance, resolution, or order sets a tax
  rate that, if applied to the total taxable value, will impose an
  amount of taxes to fund maintenance and operation expenditures of
  the taxing unit that exceeds the amount of taxes imposed for that
  purpose in the preceding year, the taxing unit must:
               (1)  include in the ordinance, resolution, or order in
  type larger than the type used in any other portion of the document:
                     (A)  the following statement:  "THIS TAX RATE WILL
  RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
  TAX RATE."; and
                     (B)  if the tax rate exceeds the no-new-taxes
  [effective] maintenance and operations rate, the following
  statement:  "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
  PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-TAXES
  [EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
  TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
  APPROXIMATELY $(Insert amount)."; and
               (2)  include on the home page of the [any] Internet
  website operated by the unit:
                     (A)  the following statement:  "(Insert name of
  unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE
  AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
                     (B)  if the tax rate exceeds the no-new-taxes
  [effective] maintenance and operations rate, the following
  statement:  "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
  PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-TAXES
  [EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
  TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
  APPROXIMATELY $(Insert amount)."
         (c)  If the governing body of a taxing unit does not adopt a
  tax rate before the date required by Subsection (a), the tax rate
  for the taxing unit for that tax year is the lower of the
  no-new-taxes [effective] tax rate calculated for that tax year or
  the tax rate adopted by the taxing unit for the preceding tax year.
  A tax rate established by this subsection is treated as an adopted
  tax rate. Before the fifth day after the establishment of a tax
  rate by this subsection, the governing body of the taxing unit must
  ratify the applicable tax rate in the manner required by Subsection
  (b).
         (d)  The governing body of a taxing unit other than a school
  district may not adopt a tax rate that exceeds the lower of the
  rollback tax rate or the no-new-taxes [effective] tax rate
  calculated as provided by this chapter until the governing body has
  held two public hearings on the proposed tax rate and has otherwise
  complied with Section 26.06 and Section 26.065.  The governing body
  of a taxing unit shall reduce a tax rate set by law or by vote of the
  electorate to the lower of the rollback tax rate or the no-new-taxes
  [effective] tax rate and may not adopt a higher rate unless it first
  complies with Section 26.06.
         (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 [effective] tax rate
  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 [effective] tax rate calculated as
  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 [effective] tax rate)."
         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
  [effective] tax rate calculated under this chapter) percent.  Your
  individual taxes may increase at a greater or lesser rate, or even
  decrease, depending on the change in the taxable value of your
  property in relation to the change in taxable value of all other
  property and the tax rate that is adopted.
         "The first public hearing will be held on (date and time) at
  (meeting place).
         "The second public hearing will be held on (date and time) at
  (meeting place).
         "(Names of all members of the governing body, showing how
  each voted on the proposal to consider the tax increase or, if one
  or more were absent, indicating the absences.)
         "The average taxable value of a residence homestead in (name
  of taxing unit) last year was $____ (average taxable value of a
  residence homestead in the taxing unit for the preceding tax year,
  disregarding residence homestead exemptions available only to
  disabled persons or persons 65 years of age or older).  Based on
  last year's tax rate of $____ (preceding year's adopted tax rate)
  per $100 of taxable value, the amount of taxes imposed last year on
  the average home was $____ (tax on average taxable value of a
  residence homestead in the taxing unit for the preceding tax year,
  disregarding residence homestead exemptions available only to
  disabled persons or persons 65 years of age or older).
         "The average taxable value of a residence homestead in (name
  of taxing unit) this year is $____ (average taxable value of a
  residence homestead in the taxing unit for the current tax year,
  disregarding residence homestead exemptions available only to
  disabled persons or persons 65 years of age or older).  If the
  governing body adopts the no-new-taxes [effective tax] rate for
  this year of $____ (no-new-taxes [effective] tax rate) per $100 of
  taxable value, the amount of taxes imposed this year on the average
  home would be $____ (tax on average taxable value of a residence
  homestead in the taxing unit for the current tax year, disregarding
  residence homestead exemptions available only to disabled persons
  or persons 65 years of age or older).
         "If the governing body adopts the proposed tax rate of $____
  (proposed tax rate) per $100 of taxable value, the amount of taxes
  imposed this year on the average home would be $____ (tax on the
  average taxable value of a residence in the taxing unit for the
  current year disregarding residence homestead exemptions available
  only to disabled persons or persons 65 years of age or older).
         "Members of the public are encouraged to attend the hearings
  and express their views."
         (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 [If the taxing
  unit operates an Internet website, the] notice must be posted on the
  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 [effective] tax rate calculated under this chapter)
  percent.
         "The total tax revenue proposed to be raised last year at last
  year's tax rate of (insert tax rate for the preceding year) for each
  $100 of taxable value was (insert total amount of taxes imposed in
  the preceding year).
         "The total tax revenue proposed to be raised this year at the
  proposed tax rate of (insert proposed tax rate) for each $100 of
  taxable value, excluding tax revenue to be raised from new property
  added to the tax roll this year, is (insert amount computed by
  multiplying proposed tax rate by the difference between current
  total value and new property value).
         "The total tax revenue proposed to be raised this year at the
  proposed tax rate of (insert proposed tax rate) for each $100 of
  taxable value, including tax revenue to be raised from new property
  added to the tax roll this year, is (insert amount computed by
  multiplying proposed tax rate by current total value).
         "The (governing body of the taxing unit) is scheduled to vote
  on the tax rate that will result in that tax increase at a public
  meeting to be held on (date of meeting) at (location of meeting,
  including mailing address) at (time of meeting).
         "The (governing body of the taxing unit) proposes to use the
  increase in total tax revenue for the purpose of (description of
  purpose of increase)."
         (e)  The meeting to vote on the tax increase may not be
  earlier than the third day or later than the 14th day after the date
  of the second public hearing. The meeting must be held inside the
  boundaries of the taxing unit in a publicly owned building or, if a
  suitable publicly owned building is not available, in a suitable
  building to which the public normally has access. If the governing
  body does not adopt a tax rate that exceeds the lower of the
  rollback tax rate or the no-new-taxes [effective] tax rate by the
  14th day, it must give a new notice under Subsection (d) before it
  may adopt a rate that exceeds the lower of the rollback tax rate or
  the no-new-taxes [effective] tax rate.
         SECTION 20.  Section 26.065(b), Tax Code, is amended to read
  as follows:
         (b)  The taxing [If the taxing unit owns, operates, or
  controls an Internet website, the] unit shall post notice of the
  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 [effective] rate of that tax as of the date of the
  county unit system's abolition is added to the district's rollback
  tax rate.
         (n)  For purposes of this section, the rollback tax rate of a
  school district whose maintenance and operations tax rate for the
  2005 tax year was $1.50 or less per $100 of taxable value is:
               (1)  for the 2006 tax year, the sum of the rate that is
  equal to 88.67 percent of the maintenance and operations tax rate
  adopted by the district for the 2005 tax year, the rate of $0.04 per
  $100 of taxable value, and the district's current debt rate; and
               (2)  for the 2007 and subsequent tax years, the lesser
  of the following:
                     (A)  the sum of the following:
                           (i)  the rate per $100 of taxable value that
  is equal to the product of the state compression percentage, as
  determined under Section 42.2516, Education Code, for the current
  year and $1.50;
                           (ii)  the rate of $0.04 per $100 of taxable
  value;
                           (iii)  the rate that is equal to the sum of
  the differences for the 2006 and each subsequent tax year between
  the adopted tax rate of the district for that year if the rate was
  approved at an election under this section and the rollback tax rate
  of the district for that year; and
                           (iv)  the district's current debt rate; or
                     (B)  the sum of the following:
                           (i)  the no-new-taxes [effective]
  maintenance and operations tax rate of the district as computed
  under Subsection (i) [or (k), as applicable];
                           (ii)  the rate per $100 of taxable value that
  is equal to the product of the state compression percentage, as
  determined under Section 42.2516, Education Code, for the current
  year and $0.06; and
                           (iii)  the district's current debt rate.
         (p)  Notwithstanding Subsections (i), (n), and (o), if for
  the preceding tax year a school district adopted a maintenance and
  operations tax rate that was less than the district's no-new-taxes
  [effective] maintenance and operations tax rate for that preceding
  tax year, the rollback tax rate of the district for the current tax
  year is calculated as if the district adopted a maintenance and
  operations tax rate for the preceding tax year that was equal to the
  district's no-new-taxes [effective] maintenance and operations tax
  rate for that preceding tax year.
         SECTION 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
  [effective] maintenance and operations tax rate of a school
  district is the tax rate that, applied to the current total value
  for the district, would impose taxes in an amount that, when added
  to state funds that would be distributed to the district under
  Chapter 42, Education Code, for the school year beginning in the
  current tax year using that tax rate, would provide the same amount
  of state funds distributed under Chapter 42, Education Code, and
  maintenance and operations taxes of the district per student in
  weighted average daily attendance for that school year that would
  have been available to the district in the preceding year if the
  funding elements for Chapters 41 and 42, Education Code, for the
  current year had been in effect for the preceding year.
         SECTION 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 [that maintains an
  Internet website] shall post on the Internet website maintained by 
  [of] the county the following information for the most recent five
  tax years beginning with the 2012 tax year for each taxing unit all
  or part of the territory of which is located in the county:
               (1)  the adopted tax rate;
               (2)  the maintenance and operations rate;
               (3)  the debt rate;
               (4)  the no-new-taxes [effective] tax rate;
               (5)  the no-new-taxes [effective] maintenance and
  operations rate; and
               (6)  the rollback tax rate.
         (a-1)  For purposes of Subsection (a), a reference to the
  no-new-taxes tax rate or the no-new-taxes maintenance and
  operations rate includes the equivalent effective tax rate or
  effective maintenance and operations rate for a preceding year.  
  This subsection expires January 1, 2024.
         (d)  The county assessor-collector shall post immediately
  below the table prescribed by Subsection (c) the following
  statement:
         "The county is providing this table of property tax rate
  information as a service to the residents of the county. Each
  individual taxing unit is responsible for calculating the property
  tax rates listed in this table pertaining to that taxing unit and
  providing that information to the county.
         "The adopted tax rate is the tax rate adopted by the governing
  body of a taxing unit.
         "The maintenance and operations rate is the component of the
  adopted tax rate of a taxing unit that will impose the amount of
  taxes needed to fund maintenance and operation expenditures of the
  unit for the following year.
         "The debt rate is the component of the adopted tax rate of a
  taxing unit that will impose the amount of taxes needed to fund the
  unit's debt service for the following year.
         "The no-new-taxes [effective tax] rate is the tax rate that
  would generate the same amount of revenue in the current tax year as
  was generated by a taxing unit's adopted tax rate in the preceding
  tax year from property that is taxable in both the current tax year
  and the preceding tax year.
         "The no-new-taxes [effective] maintenance and operations
  rate is the tax rate that would generate the same amount of revenue
  for maintenance and operations in the current tax year as was
  generated by a taxing unit's maintenance and operations rate in the
  preceding tax year from property that is taxable in both the current
  tax year and the preceding tax year.
         "The rollback tax rate is the highest tax rate a taxing unit
  may adopt before requiring voter approval at an election. 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 [property tax reduction and computation of the
  municipal tax rate] under Section 26.041.
         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 [property
  tax reduction and computation of the municipal tax rate] under
  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 [property tax reduction and computation of the county
  tax rate] under Section 26.041, Tax Code.
         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 [effective] tax rate for
  the tax year calculated as provided by Section 26.04, Tax Code, on
  all property taxable by the school district. All real property
  purchased with these funds is the property of the school district,
  but is subject to the exclusive control of the governing body of the
  junior college district for as long as the junior college district
  uses the property for educational purposes.
         SECTION 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 [effective] tax rate;
                     (C)  the no-new-taxes [effective] maintenance and
  operations tax rate;
                     (D)  the rollback tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of municipal debt obligations.
         SECTION 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 [effective] tax rate;
                     (C)  the no-new-taxes [effective] maintenance and
  operations tax rate;
                     (D)  the rollback tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of county debt obligations.
         SECTION 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 [effective] tax rate;
                     (C)  the no-new-taxes [effective] maintenance and
  operations tax rate;
                     (D)  the rollback tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of county debt obligations.
         SECTION 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 [effective] tax rate;
                     (C)  the no-new-taxes [effective] maintenance and
  operations tax rate;
                     (D)  the rollback tax rate; and
                     (E)  the debt rate; and
               (4)  the total amount of county debt obligations.
         SECTION 32.  Sections 140.010(a), (d), and (e), Local
  Government Code, are amended to read as follows:
         (a)  In this section, "no-new-taxes ["effective] tax rate"
  and "rollback tax rate" mean the no-new-taxes [effective] tax rate
  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 [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
         NO-NEW-TAXES [EFFECTIVE TAX] RATE          $______ per $100
  "The no-new-taxes [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 no-new-taxes [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 no-new-taxes
  [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
         NO-NEW-TAXES [EFFECTIVE TAX] RATE          $______ per $100
         ROLLBACK TAX RATE                         $______ per $100
  "The no-new-taxes [effective tax] rate is the total tax rate needed
  to raise the same amount of property tax revenue for (insert name of
  county or municipality) from the same properties in both the
  (insert preceding tax year) tax year and the (insert current tax
  year) tax year.
  "The rollback tax rate is the highest tax rate that (insert name of
  county or municipality) may adopt before voters are entitled to
  petition for an election to limit the rate that may be approved to
  the rollback rate.
  "YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
  FOLLOWS:
  property tax amount = (rate) x (taxable value of your property) /
  100
  "For assistance or detailed information about tax calculations,
  please contact:
         (insert name of county or municipal tax assessor-collector)
         (insert name of county or municipality) tax
  assessor-collector
         (insert address)
         (insert telephone number)
         (insert e-mail address)
         (insert Internet website address[, if applicable])
  "You are urged to attend and express your views at the following
  public hearings on the proposed tax rate:
         First Hearing:  (insert date and time) at (insert location of
  meeting).
         Second Hearing:  (insert date and time) at (insert location
  of meeting)."
         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.