H.B. No. 2291
AN ACT
relating to the procedure to be used by a taxing unit in adopting an
ad valorem tax rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.05(b), Tax Code, is amended to read as
follows:
(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. The vote on the ordinance, resolution, or order setting a
tax rate that exceeds the effective tax rate must be a record vote.
A motion to adopt an ordinance, resolution, or order setting a tax
rate that exceeds the effective tax rate must be made in the
following form: "I move that the property tax rate [taxes] 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 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 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 EFFECTIVE MAINTENANCE AND OPERATIONS RATE)
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A
$100,000 HOME BY APPROXIMATELY $(Insert amount)."; and
(2) include on the home page of any Internet website
operated by the unit:
(A) the following statement: "(Insert name of
unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE
AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
(B) if the tax rate exceeds the 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 EFFECTIVE MAINTENANCE AND OPERATIONS RATE)
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A
$100,000 HOME BY APPROXIMATELY $(Insert amount)."
SECTION 2. (a) The change in law made by this Act applies to
the ad valorem tax rate of a taxing unit beginning with the 2009 tax
year, except as provided by Subsection (b) of this section.
(b) If the governing body of a taxing unit adopted an ad
valorem tax rate for the taxing unit for the 2009 tax year before
the effective date of this Act, the change in law made by this Act
applies to the ad valorem tax rate of that taxing unit beginning
with the 2010 tax year, and the law in effect when the tax rate was
adopted applies to the 2009 tax year with respect to that taxing
unit.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2291 was passed by the House on May 8,
2009, by the following vote: Yeas 133, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2291 was passed by the Senate on May
27, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor