Texas 2009 - 81st Regular

Texas Senate Bill SB700 Compare Versions

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1	1	By: Patrick S.B. No. 700
2	2	(In the Senate - Filed February 6, 2009; February 23, 2009,
3	3	read first time and referred to Committee on Finance;
4	4	April 23, 2009, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 12, Nays 1; April 23, 2009,
6	6	sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 700 By: Williams
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to increased transparency regarding appraisals for ad
13	13	valorem tax purposes and increased tax rates.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	ARTICLE 1. NOTICE OF APPRAISAL
16	16	SECTION 1.01. Section 25.19, Tax Code, is amended by adding
17	17	Subsection (b-3) to read as follows:
18	18	(b-3) For real property, in addition to the information
19	19	required by Subsection (b), the chief appraiser shall state in a
20	20	notice required to be delivered under Subsection (a) the following
21	21	for the current tax year and each of the preceding five tax years:
22	22	(1) the appraised value of the property; and
23	23	(2) the difference, expressed as a percent increase or
24	24	decrease, as applicable, in the appraised value of the property
25	25	compared to the appraised value of the property for the preceding
26	26	tax year.
27	27	ARTICLE 2. REQUIRED ELECTION TO RATIFY TAX RATE INCREASE
28	28	SECTION 2.01. Section 26.07, Tax Code, is amended to read as
29	29	follows:
30	30	Sec. 26.07. ELECTION TO RATIFY TAX [REPEAL] INCREASE OF
31	31	TAXING UNIT OTHER THAN SCHOOL DISTRICT. (a) The [If the]
32	32	governing body of a taxing unit other than a school district may not
33	33	adopt [adopts] a tax rate that exceeds the rollback tax rate
34	34	calculated as provided by this chapter without voter approval as
35	35	provided by this section. To adopt a tax rate that exceeds the
36	36	rollback tax rate, the governing body must adopt the rate as a
37	37	proposed tax rate and call an election to permit[,] the qualified
38	38	voters of the taxing unit [by petition may require that an election
39	39	be held to determine whether or not] to approve or disapprove
40	40	[reduce] the proposed tax rate [adopted for the current year to the
41	41	rollback tax rate calculated as provided by this chapter].
42	42	(b) The [A petition is valid only if:
43	43	[(1) it states that it is intended to require an
44	44	election in the taxing unit on the question of reducing the tax rate
45	45	for the current year;
46	46	[(2) it is signed by a number of registered voters of
47	47	the taxing unit equal to at least:
48	48	[(A) seven percent of the number of registered
49	49	voters of the taxing unit according to the most recent list of
50	50	registered voters if the tax rate adopted for the current tax year
51	51	would impose taxes for maintenance and operations in an amount of at
52	52	least $5 million; or
53	53	[(B) 10 percent of the number of registered
54	54	voters of the taxing unit according to the most recent official list
55	55	of registered voters if the tax rate adopted for the current tax
56	56	year would impose taxes for maintenance and operations in an amount
57	57	of less than $5 million; and
58	58	[(3) it is submitted to the governing body on or before
59	59	the 90th day after the date on which the governing body adopted the
60	60	tax rate for the current year.
61	61	[(c) Not later than the 20th day after the day a petition is
62	62	submitted, the governing body shall determine whether or not the
63	63	petition is valid and pass a resolution stating its finding. If the
64	64	governing body fails to act within the time allowed, the petition is
65	65	treated as if it had been found valid.
66	66	[(d) If the] governing body [finds that the petition is
67	67	valid (or fails to act within the time allowed), it] shall order
68	68	that the [an] election be held in the taxing unit on a date not less
69	69	than 30 or more than 90 days after the [last] day on which the
70	70	governing body adopted the proposed tax rate. Section 41.001,
71	71	Election Code, [it could have acted to approve or disapprove the
72	72	petition. A state law requiring local elections to be held on a
73	73	specified date] does not apply to the election unless a [specified]
74	74	date specified by that section falls within the time permitted by
75	75	this section. At the election, the ballots shall be prepared to
76	76	permit voting for or against the proposition: "Approving
77	77	["Reducing] the proposed ad valorem tax rate of $_____ per $100
78	78	valuation in (name of taxing unit) for the current year, a rate that
79	79	is $_____ higher per $100 valuation than the [from (the rate
80	80	adopted) to (the] rollback tax rate [calculated as provided by this
81	81	chapter)]." The ballot proposition must include the proposed tax
82	82	rate and the difference between that rate and the rollback tax rate
83	83	in the appropriate places.
84	84	(c) [(e)] If a majority of the votes cast [qualified voters
85	85	voting on the question] in the election favor the proposition, the
86	86	proposition is approved and the tax rate for the [taxing unit for
87	87	the] current year is the proposed [rollback] tax rate that was
88	88	[calculated as provided by this chapter; otherwise, the tax rate
89	89	for the current year is the one] adopted by the governing body.
90	90	(d) [(f)] If the proposition is not approved as provided by
91	91	Subsection (c), the governing body may not adopt a tax rate for the
92	92	taxing unit for the current year that exceeds the taxing unit's
93	93	rollback tax rate [is reduced by an election called under this
94	94	section after tax bills for the unit are mailed, the assessor for
95	95	the unit shall prepare and mail corrected tax bills. He shall
96	96	include with the bill a brief explanation of the reason for and
97	97	effect of the corrected bill. The date on which the taxes become
98	98	delinquent for the year is extended by a number of days equal to the
99	99	number of days between the date the first tax bills were sent and
100	100	the date the corrected tax bills were sent].
101	101	[(g) If a property owner pays taxes calculated using the
102	102	higher tax rate when the rate is reduced by an election called under
103	103	this section, the taxing unit shall refund the difference between
104	104	the amount of taxes paid and the amount due under the reduced rate
105	105	if the difference between the amount of taxes paid and the amount
106	106	due under the reduced rate is $1 or more. If the difference between
107	107	the amount of taxes paid and the amount due under the reduced rate
108	108	is less than $1, the taxing unit shall refund the difference on
109	109	request of the taxpayer. An application for a refund of less than
110	110	$1 must be made within 90 days after the date the refund becomes due
111	111	or the taxpayer forfeits the right to the refund.]
112	112	SECTION 2.02. Subsections (a) and (b), Section 31.12, Tax
113	113	Code, are amended to read as follows:
114	114	(a) If a refund of a tax provided by Section 11.431(b),
115	115	[26.07(g),] 26.15(f), 31.11, or 31.111 is paid on or before the 60th
116	116	day after the date the liability for the refund arises, no interest
117	117	is due on the amount refunded. If not paid on or before that 60th
118	118	day, the amount of the tax to be refunded accrues interest at a rate
119	119	of one percent for each month or part of a month that the refund is
120	120	unpaid, beginning with the date on which the liability for the
121	121	refund arises.
122	122	(b) For purposes of this section, liability for a refund
123	123	arises:
124	124	(1) if the refund is required by Section 11.431(b), on
125	125	the date the chief appraiser notifies the collector for the unit of
126	126	the approval of the late homestead exemption;
127	127	(2) [if the refund is required by Section 26.07(g), on
128	128	the date the results of the election to reduce the tax rate are
129	129	certified;
130	130	[(3)] if the refund is required by Section 26.15(f):
131	131	(A) for a correction to the tax roll made under
132	132	Section 26.15(b), on the date the change in the tax roll is
133	133	certified to the assessor for the taxing unit under Section 25.25;
134	134	or
135	135	(B) for a correction to the tax roll made under
136	136	Section 26.15(c), on the date the change in the tax roll is ordered
137	137	by the governing body of the taxing unit;
138	138	(3) [(4)] if the refund is required by Section 31.11,
139	139	on the date the auditor for the taxing unit determines that the
140	140	payment was erroneous or excessive or, if the amount of the refund
141	141	exceeds the applicable amount specified by Section 31.11(a), on the
142	142	date the governing body of the unit approves the refund; or
143	143	(4) [(5)] if the refund is required by Section 31.111,
144	144	on the date the collector for the taxing unit determines that the
145	145	payment was erroneous.
146	146	SECTION 2.03. Subsection (b), Section 33.08, Tax Code, is
147	147	amended to read as follows:
148	148	(b) The governing body of the taxing unit or appraisal
149	149	district, in the manner required by law for official action, may
150	150	provide that taxes that become delinquent on or after June 1 under
151	151	Section [26.07(f),] 26.15(e), 31.03, 31.031, 31.032, or 31.04 incur
152	152	an additional penalty to defray costs of collection. The amount of
153	153	the penalty may not exceed the amount of the compensation specified
154	154	in the applicable contract with an attorney under Section 6.30 to be
155	155	paid in connection with the collection of the delinquent taxes.
156	156	SECTION 2.04. Section 49.236, Water Code, as added by
157	157	Chapters 248 (H.B. 1541) and 335 (S.B. 392), Acts of the 78th
158	158	Legislature, Regular Session, 2003, is reenacted and amended to
159	159	read as follows:
160	160	Sec. 49.236. NOTICE OF TAX HEARING. (a) Before the board
161	161	adopts an ad valorem tax rate for the district for debt service,
162	162	operation and maintenance purposes, or contract purposes, the board
163	163	shall give notice of each meeting of the board at which the adoption
164	164	of a tax rate will be considered. The notice must:
165	165	(1) contain a statement in substantially the following
166	166	form:
167	167	"NOTICE OF PUBLIC HEARING ON TAX RATE
168	168	"The (name of the district) will hold a public hearing on a
169	169	proposed tax rate for the tax year (year of tax levy) on (date and
170	170	time) at (meeting place). Your individual taxes may increase or
171	171	decrease, depending on the change in the taxable value of your
172	172	property in relation to the change in taxable value of all other
173	173	property and the tax rate that is adopted.
174	174	"(Names of all board members and, if a vote was taken, an
175	175	indication of how each voted on the proposed tax rate and an
176	176	indication of any absences.)";
177	177	(2) contain the following information:
178	178	(A) the district's total adopted tax rate for the
179	179	preceding year and the proposed tax rate, expressed as an amount per
180	180	$100;
181	181	(B) the difference, expressed as an amount per
182	182	$100 and as a percent increase or decrease, as applicable, in the
183	183	proposed tax rate compared to the adopted tax rate for the preceding
184	184	year;
185	185	(C) the average appraised value of a residence
186	186	homestead in the district in the preceding year and in the current
187	187	year; the district's total homestead exemption, other than an
188	188	exemption available only to disabled persons or persons 65 years of
189	189	age or older, applicable to that appraised value in each of those
190	190	years; and the average taxable value of a residence homestead in the
191	191	district in each of those years, disregarding any homestead
192	192	exemption available only to disabled persons or persons 65 years of
193	193	age or older;
194	194	(D) the amount of tax that would have been
195	195	imposed by the district in the preceding year on a residence
196	196	homestead appraised at the average appraised value of a residence
197	197	homestead in that year, disregarding any homestead exemption
198	198	available only to disabled persons or persons 65 years of age or
199	199	older;
200	200	(E) the amount of tax that would be imposed by the
201	201	district in the current year on a residence homestead appraised at
202	202	the average appraised value of a residence homestead in that year,
203	203	disregarding any homestead exemption available only to disabled
204	204	persons or persons 65 years of age or older, if the proposed tax
205	205	rate is adopted; and
206	206	(F) the difference between the amounts of tax
207	207	calculated under Paragraphs (D) and (E), expressed in dollars and
208	208	cents and described as the annual percentage increase or decrease,
209	209	as applicable, in the tax to be imposed by the district on the
210	210	average residence homestead in the district in the current year if
211	211	the proposed tax rate is adopted; and
212	212	(3) contain a statement in substantially the following
213	213	form:
214	214	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO
215	215	ROLLBACK ELECTION]
216	216	"If taxes on the average residence homestead increase by more
217	217	than eight percent, [the qualified voters of the district by
218	218	petition may require that] an election must be held to determine
219	219	whether to ratify [reduce] the operation and maintenance tax rate
220	220	[to the rollback tax rate] under Section 49.236(d), Water Code."
221	221	(b) Notice of the hearing shall be:
222	222	(1) published at least once in a newspaper having
223	223	general circulation in the district at least seven days before the
224	224	date of the hearing; or
225	225	(2) mailed to each owner of taxable property in the
226	226	district, at the address for notice shown on the most recently
227	227	certified tax roll of the district, at least 10 days before the date
228	228	of the hearing.
229	229	(c) The notice provided under this section may not be
230	230	smaller than one-quarter page of a standard-size or tabloid-size
231	231	newspaper of general circulation, and the headline on the notice
232	232	must be in 18-point or larger type.
233	233	(d) If the governing body of a district adopts a combined
234	234	debt service, operation and maintenance, and contract tax rate that
235	235	would impose more than 1.08 times the amount of tax imposed by the
236	236	district in the preceding year on a residence homestead appraised
237	237	at the average appraised value of a residence homestead in the
238	238	district in that year, disregarding any homestead exemption
239	239	available only to disabled persons or persons 65 years of age or
240	240	older, [the qualified voters of the district by petition may
241	241	require that] an election must be held to determine whether [or not]
242	242	to ratify [reduce] the tax rate adopted for the current year [to the
243	243	rollback tax rate] in accordance with the procedures provided by
244	244	Section 26.07 [Sections 26.07(b)-(g) and 26.081], Tax Code. For
245	245	purposes of Section 26.07, Tax Code, [Sections 26.07(b)-(g)] and
246	246	this subsection, the rollback tax rate is the current year's debt
247	247	service and contract tax rates plus the operation and maintenance
248	248	tax rate that would impose 1.08 times the amount of the operation
249	249	and maintenance tax imposed by the district in the preceding year on
250	250	a residence homestead appraised at the average appraised value of a
251	251	residence homestead in the district in that year, disregarding any
252	252	homestead exemption available only to disabled persons or persons
253	253	65 years of age or older.
254	254	SECTION 2.05. (a) The change in law made by this article
255	255	applies to the ad valorem tax rate of a taxing unit beginning with
256	256	the 2009 tax year, except as provided by Subsection (b) of this
257	257	section.
258	258	(b) If the governing body of a taxing unit adopted an ad
259	259	valorem tax rate for the taxing unit for the 2009 tax year before
260	260	the effective date of this article, the change in law made by this
261	261	article applies to the ad valorem tax rate of that taxing unit
262	262	beginning with the 2010 tax year, and the law in effect when the tax
263	263	rate was adopted applies to the 2009 tax year with respect to that
264	264	taxing unit.
265	265	SECTION 2.06. This article takes effect immediately if this
266	266	Act receives a vote of two-thirds of all the members elected to each
267	267	house, as provided by Section 39, Article III, Texas Constitution.
268	268	If this Act does not receive the vote necessary for immediate
269	269	effect, this article takes effect on the 91st day after the last day
270	270	of the legislative session.
271	271	ARTICLE 3. ELECTRONIC PROTEST PROCEDURE
272	272	SECTION 3.01. Subchapter C, Chapter 41, Tax Code, is
273	273	amended by adding Section 41.415 to read as follows:
274	274	Sec. 41.415. ELECTRONIC FILING OF NOTICE OF PROTEST.
275	275	(a) This section applies only to an appraisal district established
276	276	for a county having a population of 500,000 or more.
277	277	(b) The appraisal district shall implement a system that
278	278	allows the owner of a property that for the current tax year has
279	279	been granted a residence homestead exemption under Section 11.13,
280	280	in connection with the property, to electronically:
281	281	(1) file a notice of protest under Section 41.41(a)(1)
282	282	or (2) with the appraisal review board;
283	283	(2) receive and review comparable sales data and other
284	284	evidence that the chief appraiser intends to use at the protest
285	285	hearing before the board;
286	286	(3) receive, as applicable:
287	287	(A) a settlement offer from the district to
288	288	correct the appraisal records by changing the appraised value of
289	289	the property to the value as redetermined by the district; or
290	290	(B) a notice from the district that a settlement
291	291	offer will not be made; and
292	292	(4) accept or reject a settlement offer received from
293	293	the appraisal district under Subdivision (3)(A).
294	294	(c) With each notice sent under Section 25.19 to an eligible
295	295	property owner, the chief appraiser shall include information about
296	296	the system required by this section, including instructions for
297	297	accessing and using the system.
298	298	(d) A notice of protest filed electronically under this
299	299	section must include, at a minimum:
300	300	(1) a statement as to whether the protest is brought
301	301	under Section 41.41(a)(1) or under Section 41.41(a)(2);
302	302	(2) a statement of the property owner's good faith
303	303	estimate of the value of the property; and
304	304	(3) an electronic mail address that the district may
305	305	use to communicate electronically with the property owner in
306	306	connection with the protest.
307	307	(e) If the property owner accepts a settlement offer made by
308	308	the appraisal district, the chief appraiser shall notify the
309	309	appraisal review board. The board shall determine the protest
310	310	accordingly and otherwise comply with Section 41.47.
311	311	(f) If the property owner rejects a settlement offer, the
312	312	appraisal review board shall hear and determine the property
313	313	owner's protest in the manner otherwise provided by this subchapter
314	314	and Subchapter D.
315	315	(g) An appraisal district is not required to make the system
316	316	required by this section available to an owner of a residence
317	317	homestead located in an area in which the chief appraiser
318	318	determines that the factors affecting the market value of real
319	319	property are unusually complex.
320	320	(h) An electronic mail address provided by a property owner
321	321	to an appraisal district under Subsection (d)(3) is confidential
322	322	and may not be disclosed by the district.
323	323	(i) The comptroller shall encourage appraisal districts to
324	324	which this section does not apply to voluntarily implement an
325	325	electronic system for filing protests.
326	326	SECTION 3.02. Section 41.415, Tax Code, as added by this
327	327	article, applies only to a tax year that begins on or after the
328	328	effective date of this Act.
329	329	ARTICLE 4. EFFECTIVE DATE
330	330	SECTION 4.01. Except as otherwise provided by this Act,
331	331	this Act takes effect January 1, 2010.
332	332	* * * * *