Texas 2009 - 81st Regular

Texas House Bill HB1576 Compare Versions

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Old	New	Differences
1	1	81R8389 JD-D
2	2	By: Isett H.B. No. 1576
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain limitations on ad valorem tax rates of certain
8	8	taxing units.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 26.04(c), Tax Code, is amended to read as
11	11	follows:
12	12	(c) An officer or employee designated by the governing body
13	13	shall calculate the effective tax rate and the rollback tax rate for
14	14	the unit, where:
15	15	(1) "Effective tax rate" means a rate expressed in
16	16	dollars per $100 of taxable value calculated according to the
17	17	following formula:
18	18	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
19	19	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
20	20	; and
21	21	(2) "Rollback tax rate" means a rate expressed in
22	22	dollars per $100 of taxable value calculated according to the
23	23	following formula:
24	24	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
25	25	1.03 [1.08]) + CURRENT DEBT RATE
26	26	SECTION 2. Sections 26.041(a), (b), and (c), Tax Code, are
27	27	amended to read as follows:
28	28	(a) In the first year in which an additional sales and use
29	29	tax is required to be collected, the effective tax rate and rollback
30	30	tax rate for the unit are calculated according to the following
31	31	formulas:
32	32	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
33	33	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN RATE
34	34	and
35	35	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
36	36	1.03 [1.08]) + CURRENT DEBT RATE - SALES TAX GAIN RATE
37	37	where "sales tax gain rate" means a number expressed in dollars per
38	38	$100 of taxable value, calculated by dividing the revenue that will
39	39	be generated by the additional sales and use tax in the following
40	40	year as calculated under Subsection (d) [of this section] by the
41	41	current total value.
42	42	(b) Except as provided by Subsections (a) and (c) [of this
43	43	section], in a year in which a taxing unit imposes an additional
44	44	sales and use tax the rollback tax rate for the unit is calculated
45	45	according to the following formula, regardless of whether the unit
46	46	levied a property tax in the preceding year:
47	47	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
48	48	EXPENSE X 1.03 [1.08]) / ([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY
49	49	VALUE)] + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)
50	50	where "last year's maintenance and operations expense" means the
51	51	amount spent for maintenance and operations from property tax and
52	52	additional sales and use tax revenues in the preceding year, and
53	53	"sales tax revenue rate" means a number expressed in dollars per
54	54	$100 of taxable value, calculated by dividing the revenue that will
55	55	be generated by the additional sales and use tax in the current year
56	56	as calculated under Subsection (d) [of this section] by the current
57	57	total value.
58	58	(c) In a year in which a taxing unit that has been imposing
59	59	an additional sales and use tax ceases to impose an additional sales
60	60	and use tax the effective tax rate and rollback tax rate for the
61	61	unit are calculated according to the following formulas:
62	62	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
63	63	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS RATE
64	64	and
65	65	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
66	66	EXPENSE X 1.03 [1.08]) / ([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY
67	67	VALUE)] + CURRENT DEBT RATE
68	68	where "sales tax loss rate" means a number expressed in dollars per
69	69	$100 of taxable value, calculated by dividing the amount of sales
70	70	and use tax revenue generated in the last four quarters for which
71	71	the information is available by the current total value and "last
72	72	year's maintenance and operations expense" means the amount spent
73	73	for maintenance and operations from property tax and additional
74	74	sales and use tax revenues in the preceding year.
75	75	SECTION 3. Section 26.07, Tax Code, is amended to read as
76	76	follows:
77	77	Sec. 26.07. ELECTION TO RATIFY TAX [REPEAL] INCREASE OF
78	78	TAXING UNIT OTHER THAN SCHOOL DISTRICT. (a) The [If the] governing
79	79	body of a taxing unit other than a school district may not adopt
80	80	[adopts] a tax rate that exceeds the rollback tax rate calculated as
81	81	provided by this chapter without voter approval as provided by this
82	82	section. To adopt a tax rate that exceeds the rollback tax rate,
83	83	the governing body must adopt the rate as a proposed tax rate and
84	84	call an election to permit[,] the qualified voters of the taxing
85	85	unit [by petition may require that an election be held to determine
86	86	whether or not] to approve or disapprove [reduce] the proposed tax
87	87	rate [adopted for the current year to the rollback tax rate
88	88	calculated as provided by this chapter].
89	89	(b) The [A petition is valid only if:
90	90	[(1) it states that it is intended to require an
91	91	election in the taxing unit on the question of reducing the tax rate
92	92	for the current year;
93	93	[(2) it is signed by a number of registered voters of
94	94	the taxing unit equal to at least:
95	95	[(A) seven percent of the number of registered
96	96	voters of the taxing unit according to the most recent list of
97	97	registered voters if the tax rate adopted for the current tax year
98	98	would impose taxes for maintenance and operations in an amount of at
99	99	least $5 million; or
100	100	[(B) 10 percent of the number of registered
101	101	voters of the taxing unit according to the most recent official list
102	102	of registered voters if the tax rate adopted for the current tax
103	103	year would impose taxes for maintenance and operations in an amount
104	104	of less than $5 million; and
105	105	[(3) it is submitted to the governing body on or before
106	106	the 90th day after the date on which the governing body adopted the
107	107	tax rate for the current year.
108	108	[(c) Not later than the 20th day after the day a petition is
109	109	submitted, the governing body shall determine whether or not the
110	110	petition is valid and pass a resolution stating its finding. If the
111	111	governing body fails to act within the time allowed, the petition is
112	112	treated as if it had been found valid.
113	113	[(d) If the] governing body [finds that the petition is
114	114	valid (or fails to act within the time allowed), it] shall order
115	115	that the [an] election be held in the taxing unit on a date not less
116	116	than 30 or more than 90 days after the [last] day on which the
117	117	governing body adopted the proposed tax rate. Section 41.001,
118	118	Election Code, [it could have acted to approve or disapprove the
119	119	petition. A state law requiring local elections to be held on a
120	120	specified date] does not apply to the election unless a [specified]
121	121	date specified by that section falls within the time permitted by
122	122	this section. At the election, the ballots shall be prepared to
123	123	permit voting for or against the proposition: "Approving
124	124	["Reducing] the proposed ad valorem tax rate of $_____ per $100
125	125	valuation in (name of taxing unit) for the current year, a rate that
126	126	is $_____ higher per $100 valuation than the [from (the rate
127	127	adopted) to (the] rollback tax rate [calculated as provided by this
128	128	chapter)]." The ballot proposition must include the proposed tax
129	129	rate and the difference between that rate and the rollback tax rate
130	130	in the appropriate places.
131	131	(c) [(e)] If a majority of the votes cast [qualified voters
132	132	voting on the question] in the election favor the proposition, the
133	133	proposition is approved and the tax rate for the [taxing unit for
134	134	the] current year is the proposed [rollback] tax rate that was
135	135	[calculated as provided by this chapter; otherwise, the tax rate
136	136	for the current year is the one] adopted by the governing body.
137	137	(d) [(f)] If the proposition is not approved as provided by
138	138	Subsection (c), the governing body may not adopt a tax rate for the
139	139	taxing unit for the current year that exceeds the taxing unit's
140	140	rollback tax rate [is reduced by an election called under this
141	141	section after tax bills for the unit are mailed, the assessor for
142	142	the unit shall prepare and mail corrected tax bills. He shall
143	143	include with the bill a brief explanation of the reason for and
144	144	effect of the corrected bill. The date on which the taxes become
145	145	delinquent for the year is extended by a number of days equal to the
146	146	number of days between the date the first tax bills were sent and
147	147	the date the corrected tax bills were sent].
148	148	[(g) If a property owner pays taxes calculated using the
149	149	higher tax rate when the rate is reduced by an election called under
150	150	this section, the taxing unit shall refund the difference between
151	151	the amount of taxes paid and the amount due under the reduced rate
152	152	if the difference between the amount of taxes paid and the amount
153	153	due under the reduced rate is $1 or more. If the difference between
154	154	the amount of taxes paid and the amount due under the reduced rate
155	155	is less than $1, the taxing unit shall refund the difference on
156	156	request of the taxpayer. An application for a refund of less than
157	157	$1 must be made within 90 days after the date the refund becomes due
158	158	or the taxpayer forfeits the right to the refund.]
159	159	SECTION 4. Sections 31.12(a) and (b), Tax Code, are amended
160	160	to read as follows:
161	161	(a) If a refund of a tax provided by Section 11.431(b),
162	162	[26.07(g),] 26.15(f), 31.11, or 31.111 is paid on or before the 60th
163	163	day after the date the liability for the refund arises, no interest
164	164	is due on the amount refunded. If not paid on or before that 60th
165	165	day, the amount of the tax to be refunded accrues interest at a rate
166	166	of one percent for each month or part of a month that the refund is
167	167	unpaid, beginning with the date on which the liability for the
168	168	refund arises.
169	169	(b) For purposes of this section, liability for a refund
170	170	arises:
171	171	(1) if the refund is required by Section 11.431(b), on
172	172	the date the chief appraiser notifies the collector for the unit of
173	173	the approval of the late homestead exemption;
174	174	(2) [if the refund is required by Section 26.07(g), on
175	175	the date the results of the election to reduce the tax rate are
176	176	certified;
177	177	[(3)] if the refund is required by Section 26.15(f):
178	178	(A) for a correction to the tax roll made under
179	179	Section 26.15(b), on the date the change in the tax roll is
180	180	certified to the assessor for the taxing unit under Section 25.25;
181	181	or
182	182	(B) for a correction to the tax roll made under
183	183	Section 26.15(c), on the date the change in the tax roll is ordered
184	184	by the governing body of the taxing unit;
185	185	(3) [(4)] if the refund is required by Section 31.11,
186	186	on the date the auditor for the taxing unit determines that the
187	187	payment was erroneous or excessive or, if the amount of the refund
188	188	exceeds the applicable amount specified by Section 31.11(a), on the
189	189	date the governing body of the unit approves the refund; or
190	190	(4) [(5)] if the refund is required by Section 31.111,
191	191	on the date the collector for the taxing unit determines that the
192	192	payment was erroneous.
193	193	SECTION 5. Section 33.08(b), Tax Code, is amended to read as
194	194	follows:
195	195	(b) The governing body of the taxing unit or appraisal
196	196	district, in the manner required by law for official action, may
197	197	provide that taxes that become delinquent on or after June 1 under
198	198	Section [26.07(f),] 26.15(e), 31.03, 31.031, 31.032, or 31.04 incur
199	199	an additional penalty to defray costs of collection. The amount of
200	200	the penalty may not exceed the amount of the compensation specified
201	201	in the applicable contract with an attorney under Section 6.30 to be
202	202	paid in connection with the collection of the delinquent taxes.
203	203	SECTION 6. Section 49.236, Water Code, as added by Chapters
204	204	248 (H.B. 1541) and 335 (S.B. 392), Acts of the 78th Legislature,
205	205	Regular Session, 2003, is reenacted and amended to read as follows:
206	206	Sec. 49.236. NOTICE OF TAX HEARING. (a) Before the board
207	207	adopts an ad valorem tax rate for the district for debt service,
208	208	operation and maintenance purposes, or contract purposes, the board
209	209	shall give notice of each meeting of the board at which the adoption
210	210	of a tax rate will be considered. The notice must:
211	211	(1) contain a statement in substantially the following
212	212	form:
213	213	"NOTICE OF PUBLIC HEARING ON TAX RATE
214	214	"The (name of the district) will hold a public hearing on a
215	215	proposed tax rate for the tax year (year of tax levy) on (date and
216	216	time) at (meeting place). Your individual taxes may increase or
217	217	decrease, depending on the change in the taxable value of your
218	218	property in relation to the change in taxable value of all other
219	219	property and the tax rate that is adopted.
220	220	"(Names of all board members and, if a vote was taken, an
221	221	indication of how each voted on the proposed tax rate and an
222	222	indication of any absences.)";
223	223	(2) contain the following information:
224	224	(A) the district's total adopted tax rate for the
225	225	preceding year and the proposed tax rate, expressed as an amount per
226	226	$100;
227	227	(B) the difference, expressed as an amount per
228	228	$100 and as a percent increase or decrease, as applicable, in the
229	229	proposed tax rate compared to the adopted tax rate for the preceding
230	230	year;
231	231	(C) the average appraised value of a residence
232	232	homestead in the district in the preceding year and in the current
233	233	year; the district's total homestead exemption, other than an
234	234	exemption available only to disabled persons or persons 65 years of
235	235	age or older, applicable to that appraised value in each of those
236	236	years; and the average taxable value of a residence homestead in the
237	237	district in each of those years, disregarding any homestead
238	238	exemption available only to disabled persons or persons 65 years of
239	239	age or older;
240	240	(D) the amount of tax that would have been
241	241	imposed by the district in the preceding year on a residence
242	242	homestead appraised at the average appraised value of a residence
243	243	homestead in that year, disregarding any homestead exemption
244	244	available only to disabled persons or persons 65 years of age or
245	245	older;
246	246	(E) the amount of tax that would be imposed by the
247	247	district in the current year on a residence homestead appraised at
248	248	the average appraised value of a residence homestead in that year,
249	249	disregarding any homestead exemption available only to disabled
250	250	persons or persons 65 years of age or older, if the proposed tax
251	251	rate is adopted; and
252	252	(F) the difference between the amounts of tax
253	253	calculated under Paragraphs (D) and (E), expressed in dollars and
254	254	cents and described as the annual percentage increase or decrease,
255	255	as applicable, in the tax to be imposed by the district on the
256	256	average residence homestead in the district in the current year if
257	257	the proposed tax rate is adopted; and
258	258	(3) contain a statement in substantially the following
259	259	form:
260	260	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO
261	261	ROLLBACK ELECTION]
262	262	"If taxes on the average residence homestead increase by more
263	263	than three [eight] percent, [the qualified voters of the district
264	264	by petition may require that] an election must be held to determine
265	265	whether to ratify [reduce] the operation and maintenance tax rate
266	266	[to the rollback tax rate] under Section 49.236(d), Water Code."
267	267	(b) Notice of the hearing shall be:
268	268	(1) published at least once in a newspaper having
269	269	general circulation in the district at least seven days before the
270	270	date of the hearing; or
271	271	(2) mailed to each owner of taxable property in the
272	272	district, at the address for notice shown on the most recently
273	273	certified tax roll of the district, at least 10 days before the date
274	274	of the hearing.
275	275	(c) The notice provided under this section may not be
276	276	smaller than one-quarter page of a standard-size or tabloid-size
277	277	newspaper of general circulation, and the headline on the notice
278	278	must be in 18-point or larger type.
279	279	(d) If the governing body of a district adopts a combined
280	280	debt service, operation and maintenance, and contract tax rate that
281	281	would impose more than 1.03 [1.08] times the amount of tax imposed
282	282	by the district in the preceding year on a residence homestead
283	283	appraised at the average appraised value of a residence homestead
284	284	in the district in that year, disregarding any homestead exemption
285	285	available only to disabled persons or persons 65 years of age or
286	286	older, [the qualified voters of the district by petition may
287	287	require that] an election must be held to determine whether [or not]
288	288	to ratify [reduce] the tax rate adopted for the current year [to the
289	289	rollback tax rate] in accordance with the procedures provided by
290	290	Section 26.07 [Sections 26.07(b)-(g) and 26.081], Tax Code. For
291	291	purposes of Section 26.07, Tax Code, [Sections 26.07(b)-(g)] and
292	292	this subsection, the rollback tax rate is the current year's debt
293	293	service and contract tax rates plus the operation and maintenance
294	294	tax rate that would impose 1.03 [1.08] times the amount of the
295	295	operation and maintenance tax imposed by the district in the
296	296	preceding year on a residence homestead appraised at the average
297	297	appraised value of a residence homestead in the district in that
298	298	year, disregarding any homestead exemption available only to
299	299	disabled persons or persons 65 years of age or older.
300	300	SECTION 7. (a) The change in law made by this Act applies to
301	301	the ad valorem tax rate of a taxing unit beginning with the 2009 tax
302	302	year, except as provided by Subsection (b) of this section.
303	303	(b) If the governing body of a taxing unit adopted an ad
304	304	valorem tax rate for the taxing unit for the 2009 tax year before
305	305	the effective date of this Act, the change in law made by this Act
306	306	applies to the ad valorem tax rate of that taxing unit beginning
307	307	with the 2010 tax year, and the law in effect when the tax rate was
308	308	adopted applies to the 2009 tax year with respect to that taxing
309	309	unit.
310	310	SECTION 8. This Act takes effect immediately if it receives
311	311	a vote of two-thirds of all the members elected to each house, as
312	312	provided by Section 39, Article III, Texas Constitution. If this
313	313	Act does not receive the vote necessary for immediate effect, this
314	314	Act takes effect September 1, 2009.