81R11495 JD-D
By: Taylor H.B. No. 4413
A BILL TO BE ENTITLED
AN ACT
relating to the required notice of a public hearing on the adoption
of an ad valorem tax rate by the governing body of a taxing unit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.05(d), Tax Code, is amended to read as
follows:
(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] 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 effective tax rate and
may not adopt a higher rate unless it first complies with Section
26.06.
SECTION 2. Section 26.06(b), Tax Code, is 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] 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 effective tax rate for this year of
$ (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."
SECTION 3. Section 26.06(d), Tax Code, as amended by
Chapters 1105 (H.B. 3495) and 1112 (H.B. 3630), Acts of the 80th
Legislature, Regular Session, 2007, is reenacted and amended to
read as follows:
(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]
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 amount of the interest and sinking fund balances of the
(name of taxing unit) at the end of the preceding two tax years were
$ for (preceding tax year) and $ for
(year before preceding tax year).
"The amount of the general fund balances of the (name of
taxing unit) at the end of the preceding two tax years were
$ for (preceding tax year) and $ for
(year before preceding tax year).
"The amount of the interest and sinking fund balance of the
(name of taxing unit) at the end of the current tax year is
estimated to be $ .
"The amount of the general fund balance of the (name of taxing
unit) at the end of the current tax year is estimated to be
$ .
"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)."
SECTION 4. To the extent of any conflict, this Act prevails
over another Act of the 81st Legislature, Regular Session, 2009,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 5. This Act applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 6. This Act takes effect January 1, 2010.