Texas 2009 - 81st Regular

Texas Senate Bill SB2301 Compare Versions

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1	1	81R14603 JD-F
2	2	By: Williams S.B. No. 2301
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the calculation of the ad valorem rollback tax rates of
8	8	certain taxing units.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 26.04, Tax Code, is amended by amending
11	11	Subsection (c) and adding Subsections (c-1) and (c-2) to read as
12	12	follows:
13	13	(c) An officer or employee designated by the governing body
14	14	shall calculate the effective tax rate and the rollback tax rate for
15	15	the unit, where:
16	16	(1) "Effective tax rate" means a rate expressed in
17	17	dollars per $100 of taxable value calculated according to the
18	18	following formula:
19	19	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
20	20	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
21	21	; and
22	22	(2) "Rollback tax rate" means a rate expressed in
23	23	dollars per $100 of taxable value calculated according to the
24	24	following formula:
25	25	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
26	26	1.05 [1.08]) + CURRENT DEBT RATE
27	27	(c-1) Notwithstanding any other provision of this section,
28	28	the designated officer or employee may substitute "1.08" for "1.05"
29	29	in the calculation of the rollback tax rate if:
30	30	(1) any part of the taxing unit is located in an area
31	31	declared a disaster area by the governor or the president of the
32	32	United States during the current tax year; or
33	33	(2) the governing body finds that a higher tax rate is
34	34	necessary to protect the health, safety, or property of persons
35	35	residing in the taxing unit.
36	36	(c-2) A finding under Subsection (c-1)(2) is not valid
37	37	unless the finding:
38	38	(1) is in the form of a resolution adopted by the
39	39	governing body of the taxing unit;
40	40	(2) includes a description of the harm to residents of
41	41	the taxing unit that would occur if the taxing unit were subject to
42	42	a five percent rollback tax rate; and
43	43	(3) is approved by a record vote taken at a public
44	44	meeting of the governing body.
45	45	SECTION 2. Section 26.041, Tax Code, is amended by amending
46	46	Subsections (a), (b), and (c) and adding Subsections (c-1) and
47	47	(c-2) to read as follows:
48	48	(a) In the first year in which an additional sales and use
49	49	tax is required to be collected, the effective tax rate and rollback
50	50	tax rate for the unit are calculated according to the following
51	51	formulas:
52	52	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
53	53	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN RATE
54	54	and
55	55	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
56	56	1.05 [1.08]) + CURRENT DEBT RATE - SALES TAX GAIN RATE
57	57	where "sales tax gain rate" means a number expressed in dollars per
58	58	$100 of taxable value, calculated by dividing the revenue that will
59	59	be generated by the additional sales and use tax in the following
60	60	year as calculated under Subsection (d) [of this section] by the
61	61	current total value.
62	62	(b) Except as provided by Subsections (a) and (c) [of this
63	63	section], in a year in which a taxing unit imposes an additional
64	64	sales and use tax the rollback tax rate for the unit is calculated
65	65	according to the following formula, regardless of whether the unit
66	66	levied a property tax in the preceding year:
67	67	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
68	68	EXPENSE X 1.05 [1.08]) / ([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY
69	69	VALUE)] + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)
70	70	where "last year's maintenance and operations expense" means the
71	71	amount spent for maintenance and operations from property tax and
72	72	additional sales and use tax revenues in the preceding year, and
73	73	"sales tax revenue rate" means a number expressed in dollars per
74	74	$100 of taxable value, calculated by dividing the revenue that will
75	75	be generated by the additional sales and use tax in the current year
76	76	as calculated under Subsection (d) [of this section] by the current
77	77	total value.
78	78	(c) In a year in which a taxing unit that has been imposing
79	79	an additional sales and use tax ceases to impose an additional sales
80	80	and use tax the effective tax rate and rollback tax rate for the
81	81	unit are calculated according to the following formulas:
82	82	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
83	83	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS RATE
84	84	and
85	85	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
86	86	EXPENSE X 1.05 [1.08]) / ([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY
87	87	VALUE)] + CURRENT DEBT RATE
88	88	where "sales tax loss rate" means a number expressed in dollars per
89	89	$100 of taxable value, calculated by dividing the amount of sales
90	90	and use tax revenue generated in the last four quarters for which
91	91	the information is available by the current total value and "last
92	92	year's maintenance and operations expense" means the amount spent
93	93	for maintenance and operations from property tax and additional
94	94	sales and use tax revenues in the preceding year.
95	95	(c-1) Notwithstanding any other provision of this section,
96	96	the designated officer or employee may substitute "1.08" for "1.05"
97	97	in the calculation of the rollback tax rate if:
98	98	(1) any part of the taxing unit is located in an area
99	99	declared a disaster area by the governor or the president of the
100	100	United States during the current tax year; or
101	101	(2) the governing body finds that a higher tax rate is
102	102	necessary to protect the health, safety, or property of persons
103	103	residing in the taxing unit.
104	104	(c-2) A finding under Subsection (c-1)(2) is not valid
105	105	unless the finding is in compliance with Section 26.04(c-2).
106	106	SECTION 3. Section 49.236, Water Code, as added by Chapters
107	107	248 (H.B. 1541) and 335 (S.B. 392), Acts of the 78th Legislature,
108	108	Regular Session, 2003, is reenacted and amended to read as follows:
109	109	Sec. 49.236. NOTICE OF TAX HEARING. (a) Before the board
110	110	adopts an ad valorem tax rate for the district for debt service,
111	111	operation and maintenance purposes, or contract purposes, the board
112	112	shall give notice of each meeting of the board at which the adoption
113	113	of a tax rate will be considered. The notice must:
114	114	(1) contain a statement in substantially the following
115	115	form:
116	116	"NOTICE OF PUBLIC HEARING ON TAX RATE
117	117	"The (name of the district) will hold a public hearing on a
118	118	proposed tax rate for the tax year (year of tax levy) on (date and
119	119	time) at (meeting place). Your individual taxes may increase or
120	120	decrease, depending on the change in the taxable value of your
121	121	property in relation to the change in taxable value of all other
122	122	property and the tax rate that is adopted.
123	123	"(Names of all board members and, if a vote was taken, an
124	124	indication of how each voted on the proposed tax rate and an
125	125	indication of any absences.)";
126	126	(2) contain the following information:
127	127	(A) the district's total adopted tax rate for the
128	128	preceding year and the proposed tax rate, expressed as an amount per
129	129	$100;
130	130	(B) the difference, expressed as an amount per
131	131	$100 and as a percent increase or decrease, as applicable, in the
132	132	proposed tax rate compared to the adopted tax rate for the preceding
133	133	year;
134	134	(C) the average appraised value of a residence
135	135	homestead in the district in the preceding year and in the current
136	136	year; the district's total homestead exemption, other than an
137	137	exemption available only to disabled persons or persons 65 years of
138	138	age or older, applicable to that appraised value in each of those
139	139	years; and the average taxable value of a residence homestead in the
140	140	district in each of those years, disregarding any homestead
141	141	exemption available only to disabled persons or persons 65 years of
142	142	age or older;
143	143	(D) the amount of tax that would have been
144	144	imposed by the district in the preceding year on a residence
145	145	homestead appraised at the average appraised value of a residence
146	146	homestead in that year, disregarding any homestead exemption
147	147	available only to disabled persons or persons 65 years of age or
148	148	older;
149	149	(E) the amount of tax that would be imposed by the
150	150	district in the current year on a residence homestead appraised at
151	151	the average appraised value of a residence homestead in that year,
152	152	disregarding any homestead exemption available only to disabled
153	153	persons or persons 65 years of age or older, if the proposed tax
154	154	rate is adopted; and
155	155	(F) the difference between the amounts of tax
156	156	calculated under Paragraphs (D) and (E), expressed in dollars and
157	157	cents and described as the annual percentage increase or decrease,
158	158	as applicable, in the tax to be imposed by the district on the
159	159	average residence homestead in the district in the current year if
160	160	the proposed tax rate is adopted; and
161	161	(3) contain a statement in substantially the following
162	162	form:
163	163	"NOTICE OF TAXPAYERS' RIGHT TO
164	164	ROLLBACK ELECTION
165	165	"If taxes on the average residence homestead increase by more
166	166	than five [eight] percent, the qualified voters of the district by
167	167	petition may require that an election be held to determine whether
168	168	to reduce the operation and maintenance tax rate to the rollback tax
169	169	rate under Section 49.236(d), Water Code."
170	170	(b) Notice of the hearing shall be:
171	171	(1) published at least once in a newspaper having
172	172	general circulation in the district at least seven days before the
173	173	date of the hearing; or
174	174	(2) mailed to each owner of taxable property in the
175	175	district, at the address for notice shown on the most recently
176	176	certified tax roll of the district, at least 10 days before the date
177	177	of the hearing.
178	178	(c) The notice provided under this section may not be
179	179	smaller than one-quarter page of a standard-size or tabloid-size
180	180	newspaper of general circulation, and the headline on the notice
181	181	must be in 18-point or larger type.
182	182	(d) If the governing body of a district adopts a combined
183	183	debt service, operation and maintenance, and contract tax rate that
184	184	would impose more than 1.05 [1.08] times the amount of tax imposed
185	185	by the district in the preceding year on a residence homestead
186	186	appraised at the average appraised value of a residence homestead
187	187	in the district in that year, disregarding any homestead exemption
188	188	available only to disabled persons or persons 65 years of age or
189	189	older, the qualified voters of the district by petition may require
190	190	that an election be held to determine whether [or not] to reduce the
191	191	tax rate adopted for the current year to the rollback tax rate in
192	192	accordance with the procedures provided by Sections 26.07(b)-(g)
193	193	and 26.081, Tax Code. For purposes of Sections 26.07(b)-(g) and
194	194	this subsection, the rollback tax rate is the current year's debt
195	195	service and contract tax rates plus the operation and maintenance
196	196	tax rate that would impose 1.05 [1.08] times the amount of the
197	197	operation and maintenance tax imposed by the district in the
198	198	preceding year on a residence homestead appraised at the average
199	199	appraised value of a residence homestead in the district in that
200	200	year, disregarding any homestead exemption available only to
201	201	disabled persons or persons 65 years of age or older.
202	202	(e) Notwithstanding any other provision of this section,
203	203	the board may substitute "eight percent" for "five percent" in
204	204	Subsection (a) and "1.08" for "1.05" in Subsection (d) if:
205	205	(1) any part of the district is located in an area
206	206	declared a disaster area by the governor or the president of the
207	207	United States during the current tax year; or
208	208	(2) the board finds that a higher tax rate is necessary
209	209	to protect the health, safety, or property of persons residing in
210	210	the district.
211	211	(f) A finding under Subsection (e)(2) is not valid unless
212	212	the finding is in compliance with Section 26.04(c-2), Tax Code.
213	213	SECTION 4. (a) The change in law made by this Act applies
214	214	to the ad valorem tax rate of a taxing unit beginning with the 2009
215	215	tax year, except as provided by Subsection (b) of this section.
216	216	(b) If the governing body of a taxing unit adopted an ad
217	217	valorem tax rate for the taxing unit for the 2009 tax year before
218	218	the effective date of this Act, the change in law made by this Act
219	219	applies to the ad valorem tax rate of that taxing unit beginning
220	220	with the 2010 tax year, and the law in effect when the tax rate was
221	221	adopted applies to the 2009 tax year with respect to that taxing
222	222	unit.
223	223	SECTION 5. This Act takes effect immediately if it receives
224	224	a vote of two-thirds of all the members elected to each house, as
225	225	provided by Section 39, Article III, Texas Constitution. If this
226	226	Act does not receive the vote necessary for immediate effect, this
227	227	Act takes effect on the 91st day after the last day of the
228	228	legislative session.