Texas 2011 - 82nd Regular

Texas House Bill HB874 Compare Versions

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1	1	82R2325 SMH-F
2	2	By: Howard of Fort Bend H.B. No. 874
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the provision of information by tax officials related
8	8	to ad valorem tax rates.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 25.19(b) and (i), Tax Code, are amended
11	11	to read as follows:
12	12	(b) The chief appraiser shall separate real from personal
13	13	property and include in the notice for each:
14	14	(1) a list of the taxing units in which the property is
15	15	taxable;
16	16	(2) the appraised value of the property in the
17	17	preceding year;
18	18	(3) the taxable value of the property in the preceding
19	19	year for each taxing unit taxing the property;
20	20	(4) the appraised value of the property for the
21	21	current year and the kind and amount of each partial exemption, if
22	22	any, approved for the current year;
23	23	(5) [if the appraised value is greater than it was in
24	24	the preceding year, the amount of tax that would be imposed on the
25	25	property on the basis of the tax rate for the preceding year;
26	26	[(6)] in italic typeface, the following
27	27	statement: "The Texas Legislature does not set the amount of your
28	28	local taxes. Your property tax burden is decided by your locally
29	29	elected officials, and all inquiries concerning your taxes should
30	30	be directed to those officials";
31	31	(6) [(7)] a detailed explanation of the time and
32	32	procedure for protesting the value;
33	33	(7) [(8)] the date and place the appraisal review
34	34	board will begin hearing protests; and
35	35	(8) [(9)] a brief explanation that the governing body
36	36	of each taxing unit decides whether or not taxes on the property
37	37	will increase and the appraisal district only determines the value
38	38	of the property.
39	39	(i) Delivery with a notice required by Subsection (a) or (g)
40	40	of a copy of the pamphlet published by the comptroller under Section
41	41	5.06 or a copy of the notice published by the chief appraiser under
42	42	Section 41.70 is sufficient to comply with the requirement that the
43	43	notice include the information specified by Subsection (b)(6)
44	44	[(b)(7)] or (g)(3), as applicable.
45	45	SECTION 2. Section 26.012, Tax Code, is amended by adding
46	46	Subdivisions (13-a) and (13-b) to read as follows:
47	47	(13-a) "Last year's maintenance and operations levy"
48	48	means the difference between last year's levy and the sum of last
49	49	year's debt levy and last year's junior college levy.
50	50	(13-b) "Last year's maintenance and operations rate"
51	51	means the rate expressed in dollars per $100 of taxable value
52	52	adopted in the preceding year for maintenance and operations.
53	53	SECTION 3. The heading to Section 26.04, Tax Code, is
54	54	amended to read as follows:
55	55	Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
56	56	EFFECTIVE, SAME SERVICES, AND ROLLBACK TAX RATES.
57	57	SECTION 4. Sections 26.04(b), (c), (d), (e), (e-1), (f),
58	58	(i), and (j), Tax Code, are amended to read as follows:
59	59	(b) The assessor shall submit the appraisal roll for the
60	60	unit showing the total appraised, assessed, and taxable values of
61	61	all property and the total taxable value of new property to the
62	62	governing body of the unit not later than the 21st day after the
63	63	date the appraisal roll is certified to the assessor. On or before
64	64	the 21st day after the date the appraisal roll is certified by the
65	65	assessor [by August 1 or as soon thereafter as practicable. By
66	66	August 1 or as soon thereafter as practicable], the taxing unit's
67	67	collector shall certify an estimate of the collection rate for the
68	68	current year to the governing body. If the collector certified an
69	69	anticipated collection rate in the preceding year and the actual
70	70	collection rate in that year exceeded the anticipated rate, the
71	71	collector shall also certify the amount of debt taxes collected in
72	72	excess of the anticipated amount in the preceding year.
73	73	(c) Not later than the 30th day after the date the appraisal
74	74	roll is certified to the assessor, an [An] officer or employee
75	75	designated by the governing body shall calculate the effective tax
76	76	rate, the same services tax rate, and the rollback tax rate for the
77	77	unit, where:
78	78	(1) "Effective tax rate" means a rate expressed in
79	79	dollars per $100 of taxable value calculated according to the
80	80	following formula:
81	81	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
82	82	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
83	83	; [and]
84	84	(2) "Same services tax rate" means a rate expressed in
85	85	dollars per $100 of taxable value calculated according to the
86	86	following formula:
87	87	SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
88	88	LEVY + (NEW PROPERTY VALUE x LAST YEAR'S
89	89	MAINTENANCE AND OPERATIONS RATE))/CURRENT
90	90	TOTAL VALUE] + CURRENT DEBT RATE
91	91	; and
92	92	(3) "Rollback tax rate" means a rate expressed in
93	93	dollars per $100 of taxable value calculated according to the
94	94	following formula:
95	95	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE
96	96	x 1.08) + CURRENT DEBT RATE
97	97	(d) The effective tax rate for a county is the sum of the
98	98	effective tax rates calculated for each type of tax the county
99	99	levies. The same services tax rate for a county is the sum of the
100	100	same services tax rates calculated for each type of tax the county
101	101	levies. The [and the] rollback tax rate for a county is the sum of
102	102	the rollback tax rates calculated for each type of tax the county
103	103	levies.
104	104	(e) Not later than the fifth day after the date the
105	105	designated officer or employee completes the calculations required
106	106	by Subsections (c) and (d) [By August 7 or as soon thereafter as
107	107	practicable], the designated officer or employee shall submit the
108	108	rates to the governing body and provide to the chief appraiser in
109	109	the form prescribed by the comptroller the effective tax rate, the
110	110	same services tax rate, the rollback tax rate, and an explanation of
111	111	how they were calculated. At least 14 days before the date of the
112	112	first meeting of the governing body to consider the budget for the
113	113	current tax year, the designated officer or employee [. He] shall
114	114	deliver by mail to each property owner in the unit or publish in a
115	115	newspaper in the form prescribed by the comptroller:
116	116	(1) last year's [the effective] tax rate, the same
117	117	services [rollback] tax rate, the tax rate required to fund the
118	118	budget for the current tax year, and an explanation of their meaning
119	119	and how they were calculated;
120	120	(2) a statement, including an example calculation,
121	121	that the tax liability of any parcel of taxable property can be
122	122	derived by multiplying the property's taxable value as computed on
123	123	the basis of the notice of appraised value delivered by the
124	124	appraisal district by each tax rate; and
125	125	(3) a statement that adoption by the governing body of
126	126	a tax rate for the current year that is higher than the same
127	127	services tax rate will constitute an overall tax increase [the
128	128	estimated amount of interest and sinking fund balances and the
129	129	estimated amount of maintenance and operation or general fund
130	130	balances remaining at the end of the current fiscal year that are
131	131	not encumbered with or by corresponding existing debt obligation;
132	132	[(3) a schedule of the unit's debt obligations
133	133	showing:
134	134	[(A) the amount of principal and interest that
135	135	will be paid to service the unit's debts in the next year from
136	136	property tax revenue, including payments of lawfully incurred
137	137	contractual obligations providing security for the payment of the
138	138	principal of and interest on bonds and other evidences of
139	139	indebtedness issued on behalf of the unit by another political
140	140	subdivision and, if the unit is created under Section 52, Article
141	141	III, or Section 59, Article XVI, Texas Constitution, payments on
142	142	debts that the unit anticipates to incur in the next calendar year;
143	143	[(B) the amount by which taxes imposed for debt
144	144	are to be increased because of the unit's anticipated collection
145	145	rate; and
146	146	[(C) the total of the amounts listed in
147	147	Paragraphs (A)-(B), less any amount collected in excess of the
148	148	previous year's anticipated collections certified as provided in
149	149	Subsection (b);
150	150	[(4) the amount of additional sales and use tax
151	151	revenue anticipated in calculations under Section 26.041;
152	152	[(5) a statement that the adoption of a tax rate equal
153	153	to the effective tax rate would result in an increase or decrease,
154	154	as applicable, in the amount of taxes imposed by the unit as
155	155	compared to last year's levy, and the amount of the increase or
156	156	decrease;
157	157	[(6) in the year that a taxing unit calculates an
158	158	adjustment under Subsection (i) or (j), a schedule that includes
159	159	the following elements:
160	160	[(A) the name of the unit discontinuing the
161	161	department, function, or activity;
162	162	[(B) the amount of property tax revenue spent by
163	163	the unit listed under Paragraph (A) to operate the discontinued
164	164	department, function, or activity in the 12 months preceding the
165	165	month in which the calculations required by this chapter are made;
166	166	and
167	167	[(C) the name of the unit that operates a
168	168	distinct department, function, or activity in all or a majority of
169	169	the territory of a taxing unit that has discontinued operating the
170	170	distinct department, function, or activity; and
171	171	[(7) in the year following the year in which a taxing
172	172	unit raised its rollback rate as required by Subsection (j), a
173	173	schedule that includes the following elements:
174	174	[(A) the amount of property tax revenue spent by
175	175	the unit to operate the department, function, or activity for which
176	176	the taxing unit raised the rollback rate as required by Subsection
177	177	(j) for the 12 months preceding the month in which the calculations
178	178	required by this chapter are made; and
179	179	[(B) the amount published by the unit in the
180	180	preceding tax year under Subdivision (6)(B)].
181	181	(e-1) The notice requirements imposed by Subsection (e)
182	182	[Subsections (e)(1)-(6)] do not apply to a school district.
183	183	(f) If as a result of consolidation of taxing units a taxing
184	184	unit includes territory that was in two or more taxing units in the
185	185	preceding year, the amount of taxes imposed in each in the preceding
186	186	year is combined for purposes of calculating the effective, same
187	187	services, and rollback tax rates under this section.
188	188	(i) This subsection applies to a taxing unit that has agreed
189	189	by written contract to transfer a distinct department, function, or
190	190	activity to another taxing unit and discontinues operating that
191	191	distinct department, function, or activity if the operation of that
192	192	department, function, or activity in all or a majority of the
193	193	territory of the taxing unit is continued by another existing
194	194	taxing unit or by a new taxing unit. The rollback tax rate of a
195	195	taxing unit to which this subsection applies in the first tax year
196	196	in which a budget is adopted that does not allocate revenue to the
197	197	discontinued department, function, or activity is calculated as
198	198	otherwise provided by this section, except that last year's levy
199	199	used to calculate the effective maintenance and operations rate and
200	200	the same services tax rate of the unit is reduced by the amount of
201	201	maintenance and operations tax revenue spent by the taxing unit to
202	202	operate the department, function, or activity for the 12 months
203	203	preceding the month in which the calculations required by this
204	204	chapter are made and in which the unit operated the discontinued
205	205	department, function, or activity. If the unit did not operate that
206	206	department, function, or activity for the full 12 months preceding
207	207	the month in which the calculations required by this chapter are
208	208	made, the unit shall reduce last year's levy used for calculating
209	209	the effective maintenance and operations rate and the same services
210	210	tax rate of the unit by the amount of the revenue spent in the last
211	211	full fiscal year in which the unit operated the discontinued
212	212	department, function, or activity.
213	213	(j) This subsection applies to a taxing unit that had agreed
214	214	by written contract to accept the transfer of a distinct
215	215	department, function, or activity from another taxing unit and
216	216	operates a distinct department, function, or activity if the
217	217	operation of a substantially similar department, function, or
218	218	activity in all or a majority of the territory of the taxing unit
219	219	has been discontinued by another taxing unit, including a dissolved
220	220	taxing unit. The rollback tax rate of a taxing unit to which this
221	221	subsection applies in the first tax year after the other taxing unit
222	222	discontinued the substantially similar department, function, or
223	223	activity in which a budget is adopted that allocates revenue to the
224	224	department, function, or activity is calculated as otherwise
225	225	provided by this section, except that last year's levy used to
226	226	calculate the effective maintenance and operations rate and the
227	227	same services tax rate of the unit is increased by the amount of
228	228	maintenance and operations tax revenue spent by the taxing unit
229	229	that discontinued operating the substantially similar department,
230	230	function, or activity to operate that department, function, or
231	231	activity for the 12 months preceding the month in which the
232	232	calculations required by this chapter are made and in which the unit
233	233	operated the discontinued department, function, or activity. If
234	234	the unit did not operate the discontinued department, function, or
235	235	activity for the full 12 months preceding the month in which the
236	236	calculations required by this chapter are made, the unit may
237	237	increase last year's levy used to calculate the effective
238	238	maintenance and operations rate and the same services tax rate by an
239	239	amount not to exceed the amount of property tax revenue spent by the
240	240	discontinuing unit to operate the discontinued department,
241	241	function, or activity in the last full fiscal year in which the
242	242	discontinuing unit operated the department, function, or activity.
243	243	SECTION 5. Sections 26.041(a), (c), (e), (g), and (h), Tax
244	244	Code, are amended to read as follows:
245	245	(a) In the first year in which an additional sales and use
246	246	tax is required to be collected, the effective tax rate, same
247	247	services tax rate, and rollback tax rate for the unit are calculated
248	248	according to the following formulas:
249	249	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY)/
250	250	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
251	251	SALES TAX GAIN RATE
252	252	SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
253	253	LEVY + (NEW PROPERTY VALUE X LAST YEAR'S
254	254	MAINTENANCE AND OPERATIONS RATE)) /
255	255	CURRENT TOTAL VALUE] + CURRENT DEBT RATE -
256	256	SALES TAX GAIN RATE
257	257	and
258	258	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
259	259	1.08) + CURRENT DEBT RATE - SALES TAX GAIN
260	260	RATE
261	261	where "sales tax gain rate" means a number expressed in dollars per
262	262	$100 of taxable value, calculated by dividing the revenue that will
263	263	be generated by the additional sales and use tax in the following
264	264	year as calculated under Subsection (d) of this section by the
265	265	current total value.
266	266	(c) In a year in which a taxing unit that has been imposing
267	267	an additional sales and use tax ceases to impose an additional sales
268	268	and use tax the effective tax rate, same services tax rate, and
269	269	rollback tax rate for the unit are calculated according to the
270	270	following formulas:
271	271	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
272	272	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
273	273	SALES TAX LOSS RATE
274	274	SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
275	275	LEVY + (NEW PROPERTY VALUE X LAST YEAR'S
276	276	MAINTENANCE AND OPERATIONS RATE))/CURRENT
277	277	TOTAL VALUE] + CURRENT DEBT RATE + SALES
278	278	TAX LOSS RATE
279	279	and
280	280	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
281	281	EXPENSE x 1.08)/([TOTAL] CURRENT TOTAL VALUE -
282	282	NEW PROPERTY VALUE)] + CURRENT DEBT RATE
283	283	where "sales tax loss rate" means a number expressed in dollars per
284	284	$100 of taxable value, calculated by dividing the amount of sales
285	285	and use tax revenue generated in the last four quarters for which
286	286	the information is available by the current total value and "last
287	287	year's maintenance and operations expense" means the amount spent
288	288	for maintenance and operations from property tax and additional
289	289	sales and use tax revenues in the preceding year.
290	290	(e) If a city that imposes an additional sales and use tax
291	291	receives payments under the terms of a contract executed before
292	292	January 1, 1986, in which the city agrees not to annex certain
293	293	property or a certain area and the owners or lessees of the property
294	294	or of property in the area agree to pay at least annually to the city
295	295	an amount determined by reference to all or a percentage of the
296	296	property tax rate of the city and all or a part of the value of the
297	297	property subject to the agreement or included in the area subject to
298	298	the agreement, the governing body, by order adopted by a majority
299	299	vote of the governing body, may direct the designated officer or
300	300	employee to add to the effective, same services, and rollback tax
301	301	rates the amount that, when applied to the total taxable value
302	302	submitted to the governing body, would produce an amount of taxes
303	303	equal to the difference between the total amount of payments for the
304	304	tax year under contracts described by this subsection under the
305	305	rollback tax rate calculated under this section and the total
306	306	amount of payments for the tax year that would have been obligated
307	307	to the city if the city had not adopted an additional sales and use
308	308	tax.
309	309	(g) If the rate of the additional sales and use tax is
310	310	increased, the designated officer or employee shall make two
311	311	projections, in the manner provided by Subsection (d) of this
312	312	section, of the revenue generated by the additional sales and use
313	313	tax in the following year. The first projection must take into
314	314	account the increase and the second projection must not take into
315	315	account the increase. The officer or employee shall then subtract
316	316	the amount of the result of the second projection from the amount of
317	317	the result of the first projection to determine the revenue
318	318	generated as a result of the increase in the additional sales and
319	319	use tax. In the first year in which an additional sales and use tax
320	320	is increased:
321	321	(1) [,] the effective tax rate for the unit is the
322	322	effective tax rate before the increase minus a number the numerator
323	323	of which is the revenue generated as a result of the increase in the
324	324	additional sales and use tax, as determined under this subsection,
325	325	and the denominator of which is the current total value minus the
326	326	new property value; and
327	327	(2) the same services tax rate for the unit is the same
328	328	services tax rate before the increase minus a number the numerator
329	329	of which is the revenue generated as a result of the increase in the
330	330	additional sales and use tax, as determined under this subsection,
331	331	and the denominator of which is the current total value minus the
332	332	new property value.
333	333	(h) If the rate of the additional sales and use tax is
334	334	decreased, the designated officer or employee shall make two
335	335	projections, in the manner provided by Subsection (d) of this
336	336	section, of the revenue generated by the additional sales and use
337	337	tax in the following year. The first projection must take into
338	338	account the decrease and the second projection must not take into
339	339	account the decrease. The officer or employee shall then subtract
340	340	the amount of the result of the first projection from the amount of
341	341	the result of the second projection to determine the revenue lost as
342	342	a result of the decrease in the additional sales and use tax. In the
343	343	first year in which an additional sales and use tax is decreased:
344	344	(1)[,] the effective tax rate for the unit is the
345	345	effective tax rate before the decrease plus a number the numerator
346	346	of which is the revenue lost as a result of the decrease in the
347	347	additional sales and use tax, as determined under this subsection,
348	348	and the denominator of which is the current total value minus the
349	349	new property value; and
350	350	(2) the same services tax rate for the unit is the same
351	351	services tax rate before the decrease plus a number the numerator of
352	352	which is the revenue lost as a result of the decrease in the
353	353	additional sales and use tax, as determined under this subsection,
354	354	and the denominator of which is the current total value minus the
355	355	new property value.
356	356	SECTION 6. The heading to Section 26.043, Tax Code, is
357	357	amended to read as follows:
358	358	Sec. 26.043. ROLLBACK, EFFECTIVE, AND SAME SERVICES TAX
359	359	RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
360	360	SECTION 7. Sections 26.043(a) and (b), Tax Code, are
361	361	amended to read as follows:
362	362	(a) In the tax year in which a city has set an election on
363	363	the question of whether to impose a local sales and use tax under
364	364	Subchapter H, Chapter 453, Transportation Code, the officer or
365	365	employee designated to make the calculations provided by Section
366	366	26.04 may not make those calculations until the outcome of the
367	367	election is determined. If the election is determined in favor of
368	368	the imposition of the tax, the representative shall subtract from
369	369	the city's rollback, [and] effective, and same services tax rates
370	370	the amount that, if applied to the city's current total value, would
371	371	impose an amount equal to the amount of property taxes budgeted in
372	372	the current tax year to pay for expenses related to mass transit
373	373	services.
374	374	(b) In a tax year to which this section applies, a reference
375	375	in this chapter to the city's effective, same services, or rollback
376	376	tax rate refers to that rate as adjusted under this section.
377	377	SECTION 8. The heading to Section 26.044, Tax Code, is
378	378	amended to read as follows:
379	379	Sec. 26.044. EFFECTIVE AND SAME SERVICES TAX RATES [RATE]
380	380	TO PAY FOR STATE CRIMINAL JUSTICE MANDATE.
381	381	SECTION 9. Sections 26.044(a) and (b), Tax Code, are
382	382	amended to read as follows:
383	383	(a) The first time that a county adopts a tax rate after
384	384	September 1, 1991, in which the state criminal justice mandate
385	385	applies to the county, the effective maintenance and operation rate
386	386	and the same services tax rate for the county are [is] increased by
387	387	the rate calculated according to the following formula:
388	388	(State Criminal Justice Mandate) / (Current Total Value - New
389	389	Property Value)
390	390	(b) In the second and subsequent years that a county adopts
391	391	a tax rate, if the amount spent by the county for the state criminal
392	392	justice mandate increased over the previous year, the effective
393	393	maintenance and operation rate and the same services tax rate for
394	394	the county are [is] increased by the rate calculated according to
395	395	the following formula:
396	396	(This Year's State Criminal Justice Mandate - Previous Year's State
397	397	Criminal Justice Mandate) / (Current Total Value - New Property
398	398	Value)
399	399	SECTION 10. Sections 26.0441(a) and (b), Tax Code, are
400	400	amended to read as follows:
401	401	(a) In the first tax year in which a taxing unit adopts a tax
402	402	rate after January 1, 2000, and in which the enhanced minimum
403	403	eligibility standards for indigent health care established under
404	404	Section 61.006, Health and Safety Code, apply to the taxing unit,
405	405	the effective maintenance and operations rate and the same services
406	406	tax rate for the taxing unit are [is] increased by the rate computed
407	407	according to the following formula:
408	408	Amount of Increase = Enhanced Indigent Health Care Expenditures /
409	409	(Current Total Value - New Property Value)
410	410	(b) In each subsequent tax year, if the taxing unit's
411	411	enhanced indigent health care expenses exceed the amount of those
412	412	expenses for the preceding year, the effective maintenance and
413	413	operations rate and the same services tax rate for the taxing unit
414	414	are [is] increased by the rate computed according to the following
415	415	formula:
416	416	Amount of Increase = (Current Tax Year's Enhanced Indigent Health
417	417	Care Expenditures - Preceding Tax Year's Indigent Health Care
418	418	Expenditures) / (Current Total Value - New Property Value)
419	419	SECTION 11. Section 26.05, Tax Code, is amended by amending
420	420	Subsections (a), (b), (c), (d), and (g) and adding Subsection (d-1)
421	421	to read as follows:
422	422	(a) The governing body of each taxing unit, before the later
423	423	of September 30 or the 90th [60th] day after the date the certified
424	424	appraisal roll is received by the taxing unit, shall adopt a tax
425	425	rate for the current tax year and shall notify the assessor for the
426	426	unit of the rate adopted. The tax rate consists of two components,
427	427	each of which must be approved separately. The components are:
428	428	(1) the following rate, as applicable:
429	429	(A) for a taxing unit other than a school
430	430	district, the rate that, if applied to the total taxable value, will
431	431	impose an amount equal to the amount computed by:
432	432	(i) adding the following amounts:
433	433	(a) the amount of principal and
434	434	interest that will be paid to service the unit's debts in the next
435	435	year from property tax revenue, including payments of lawfully
436	436	incurred contractual obligations providing security for the
437	437	payment of the principal of and interest on bonds and other
438	438	evidences of indebtedness issued on behalf of the unit by another
439	439	political subdivision and, if the unit is created under Section 52,
440	440	Article III, or Section 59, Article XVI, Texas Constitution,
441	441	payments on debts that the unit anticipates to incur in the next
442	442	calendar year; and
443	443	(b) the amount by which taxes imposed
444	444	for debt are to be increased because of the unit's anticipated
445	445	collection rate; and
446	446	(ii) subtracting from the amount computed
447	447	under Subparagraph (i) the sum of the following amounts:
448	448	(a) any amount collected in excess of
449	449	the previous year's anticipated collections certified as provided
450	450	by Section 26.04(b); and
451	451	(b) [the total amount published under
452	452	Section 26.04(e)(3)(C), less] any amount of additional sales and
453	453	use tax revenue that will be used to pay debt service; or
454	454	(B) [, or,] for a school district, the rate
455	455	published under Section 44.004(c)(5)(A)(ii)(b), Education Code;
456	456	and
457	457	(2) the rate that, if applied to the total taxable
458	458	value, will impose the amount of taxes needed to fund maintenance
459	459	and operation expenditures of the unit for the next year.
460	460	(b) A taxing unit may not impose property taxes in any year
461	461	until the governing body has adopted a tax rate for that year, and
462	462	the annual tax rate must be set by ordinance, resolution, or order,
463	463	depending on the method prescribed by law for adoption of a law by
464	464	the governing body. The vote on the ordinance, resolution, or order
465	465	setting the tax rate must be separate from the vote adopting the
466	466	budget. The vote on the ordinance, resolution, or order setting a
467	467	tax rate that exceeds the same services [effective] tax rate must be
468	468	a record vote. A motion to adopt an ordinance, resolution, or order
469	469	setting a tax rate that exceeds the same services [effective] tax
470	470	rate must be made in the following form: "I move that the property
471	471	tax rate be increased by the adoption of a tax rate of (specify tax
472	472	rate), which is effectively a (insert percentage by which the
473	473	proposed tax rate exceeds the same services [effective] tax rate)
474	474	percent increase in the tax rate." If the ordinance, resolution, or
475	475	order sets a tax rate that, if applied to the total taxable value,
476	476	will impose an amount of taxes [to fund maintenance and operation
477	477	expenditures of the taxing unit] that exceeds the amount of taxes
478	478	imposed [for that purpose] in the preceding year, the taxing unit
479	479	must:
480	480	(1) include in the ordinance, resolution, or order in
481	481	type larger than the type used in any other portion of the document:
482	482	(A) the following statement: "THIS TAX RATE WILL
483	483	RAISE MORE TAXES [FOR MAINTENANCE AND OPERATIONS] THAN LAST YEAR'S
484	484	TAX RATE."; and
485	485	(B) if the tax rate exceeds the same services tax
486	486	[effective maintenance and operations] rate, the following
487	487	statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
488	488	PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE SAME SERVICES TAX
489	489	[EFFECTIVE MAINTENANCE AND OPERATIONS] RATE) PERCENT AND WILL RAISE
490	490	TAXES [FOR MAINTENANCE AND OPERATIONS] ON A $100,000 HOME BY
491	491	APPROXIMATELY $(Insert amount)."; and
492	492	(2) include on the home page of any Internet website
493	493	operated by the unit:
494	494	(A) the following statement: "(Insert name of
495	495	unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES [FOR MAINTENANCE
496	496	AND OPERATIONS] THAN LAST YEAR'S TAX RATE"; and
497	497	(B) if the tax rate exceeds the same services tax
498	498	[effective maintenance and operations] rate, the following
499	499	statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
500	500	PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE SAME SERVICES TAX
501	501	[EFFECTIVE MAINTENANCE AND OPERATIONS] RATE) PERCENT AND WILL RAISE
502	502	TAXES [FOR MAINTENANCE AND OPERATIONS] ON A $100,000 HOME BY
503	503	APPROXIMATELY $(Insert amount)."
504	504	(c) If the designated officer or employee [governing body of
505	505	a taxing unit] does not comply with Section 26.04(e) by the date
506	506	required by that subsection and the failure to comply was caused by
507	507	circumstances beyond the designated officer's or employee's
508	508	control, such as a natural disaster [adopt a tax rate before the
509	509	date required by Subsection (a)], the tax rate for the taxing unit
510	510	for that tax year is the lower of the same services [effective] tax
511	511	rate calculated for that tax year or the tax rate adopted by the
512	512	taxing unit for the preceding tax year. A tax rate established by
513	513	this subsection is treated as an adopted tax rate. Before the fifth
514	514	day after the establishment of a tax rate by this subsection, the
515	515	governing body of the taxing unit must ratify the applicable tax
516	516	rate in the manner required by Subsection (b).
517	517	(d) The governing body of a taxing unit other than a school
518	518	district may not adopt a tax rate that exceeds the lower of the
519	519	rollback tax rate or the same services [effective] tax rate
520	520	calculated as provided by this chapter until the governing body has
521	521	complied with Subsection (d-1) of this section and has held two
522	522	public hearings on the proposed tax rate and [has] otherwise
523	523	complied with Section 26.06 and Section 26.065. The governing body
524	524	of a taxing unit shall reduce a tax rate set by law or by vote of the
525	525	electorate to the lower of the rollback tax rate or the same
526	526	services [effective] tax rate and may not adopt a higher rate unless
527	527	it first complies with Section 26.06.
528	528	(d-1) Before giving notice of the public hearings on the
529	529	proposed tax rate under Section 26.06, the governing body of a
530	530	taxing unit that is required to comply with that section must take a
531	531	record vote on a proposal to place consideration of an increase in
532	532	taxes on the agenda for the meeting at which the governing body will
533	533	adopt the tax rate. The motion for the vote must be made in the
534	534	following form: "I move that a proposal to increase property taxes
535	535	by the adoption of a tax rate of (specify tax rate) be placed on the
536	536	agenda for the meeting to be held on (date at which the governing
537	537	body anticipates adopting the tax rate)."
538	538	(g) Notwithstanding Subsection (a), the governing body of a
539	539	school district that elects to adopt a tax rate before the adoption
540	540	of a budget for the fiscal year that begins in the current tax year
541	541	may adopt a tax rate for the current tax year before receipt of the
542	542	certified appraisal roll for the school district if the chief
543	543	appraiser of the appraisal district in which the school district
544	544	participates has certified to the assessor for the school district
545	545	an estimate of the taxable value of property in the school district
546	546	as provided by Section 26.01(e). If a school district adopts a tax
547	547	rate under this subsection, the effective tax rate, the same
548	548	services tax rate, and the rollback tax rate of the district shall
549	549	be calculated based on the certified estimate of taxable value.
550	550	SECTION 12. Section 26.052(e), Tax Code, is amended to read
551	551	as follows:
552	552	(e) Public notice provided under Subsection (c) must
553	553	specify:
554	554	(1) the tax rate that the governing body proposes to
555	555	adopt;
556	556	(2) the date, time, and location of the meeting of the
557	557	governing body of the taxing unit at which the governing body will
558	558	consider adopting the proposed tax rate; and
559	559	(3) if the proposed tax rate for the taxing unit
560	560	exceeds the unit's same services [effective] tax rate calculated as
561	561	provided by Section 26.04, a statement substantially identical to
562	562	the following: "The proposed tax rate would increase total taxes in
563	563	(name of taxing unit) by (percentage by which the proposed tax rate
564	564	exceeds the same services [effective] tax rate)."
565	565	SECTION 13. Sections 26.06(b), (d), and (e), Tax Code, are
566	566	amended to read as follows:
567	567	(b) The notice of a public hearing may not be smaller than
568	568	one-quarter page of a standard-size or a tabloid-size newspaper,
569	569	and the headline on the notice must be in 24-point or larger type.
570	570	The notice must contain a statement in the following form:
571	571	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
572	572	"The (name of the taxing unit) will hold two public hearings
573	573	on a proposal to increase total tax revenues from properties on the
574	574	tax roll in the preceding tax year by (percentage by which proposed
575	575	tax rate exceeds lower of rollback tax rate or same services
576	576	[effective] tax rate calculated under this chapter) percent. Your
577	577	individual taxes may increase at a greater or lesser rate, or even
578	578	decrease, depending on the change in the taxable value of your
579	579	property in relation to the change in taxable value of all other
580	580	property and the tax rate that is adopted.
581	581	"The first public hearing will be held on (date and time) at
582	582	(meeting place).
583	583	"The second public hearing will be held on (date and time) at
584	584	(meeting place).
585	585	"(Names of all members of the governing body, showing how
586	586	each voted on the proposal to consider the tax increase or, if one
587	587	or more were absent, indicating the absences.)
588	588	"The average taxable value of a residence homestead in (name
589	589	of taxing unit) last year was $____ (average taxable value of a
590	590	residence homestead in the taxing unit for the preceding tax year,
591	591	disregarding residence homestead exemptions available only to
592	592	disabled persons or persons 65 years of age or older). Based on
593	593	last year's tax rate of $____ (preceding year's adopted tax rate)
594	594	per $100 of taxable value, the amount of taxes imposed last year on
595	595	the average home was $____ (tax on average taxable value of a
596	596	residence homestead in the taxing unit for the preceding tax year,
597	597	disregarding residence homestead exemptions available only to
598	598	disabled persons or persons 65 years of age or older).
599	599	"The average taxable value of a residence homestead in (name
600	600	of taxing unit) this year is $____ (average taxable value of a
601	601	residence homestead in the taxing unit for the current tax year,
602	602	disregarding residence homestead exemptions available only to
603	603	disabled persons or persons 65 years of age or older). If the
604	604	governing body adopts the same services [effective] tax rate for
605	605	this year of $____ (same services [effective] tax rate) per $100 of
606	606	taxable value, the amount of taxes imposed this year on the average
607	607	home would be $____ (tax on average taxable value of a residence
608	608	homestead in the taxing unit for the current tax year, disregarding
609	609	residence homestead exemptions available only to disabled persons
610	610	or persons 65 years of age or older).
611	611	"If the governing body adopts the proposed tax rate of $____
612	612	(proposed tax rate) per $100 of taxable value, the amount of taxes
613	613	imposed this year on the average home would be $____ (tax on the
614	614	average taxable value of a residence in the taxing unit for the
615	615	current year disregarding residence homestead exemptions available
616	616	only to disabled persons or persons 65 years of age or older).
617	617	"The taxes on any parcel of taxable property can be derived by
618	618	multiplying the property's taxable value as computed on the basis
619	619	of the notice of appraised value delivered by the appraisal
620	620	district by each of the above tax rates.
621	621	"Members of the public are encouraged to attend the hearings
622	622	and express their views."
623	623	(d) At the public hearings the governing body shall announce
624	624	the date, time, and place of the meeting at which it will vote on the
625	625	proposed tax rate. After each hearing the governing body shall
626	626	give notice of the meeting at which it will vote on the proposed tax
627	627	rate and the notice shall be in the same form as prescribed by
628	628	Subsections (b) and (c), except that it must state the following:
629	629	"NOTICE OF TAX REVENUE INCREASE
630	630	"The (name of the taxing unit) conducted public hearings on
631	631	(date of first hearing) and (date of second hearing) on a proposal
632	632	to increase the total tax revenues of the (name of the taxing unit)
633	633	from properties on the tax roll in the preceding year by (percentage
634	634	by which proposed tax rate exceeds lower of rollback tax rate or
635	635	same services [effective] tax rate calculated under this chapter)
636	636	percent.
637	637	"The total tax revenue proposed to be raised last year at last
638	638	year's tax rate of (insert tax rate for the preceding year) for each
639	639	$100 of taxable value was (insert total amount of taxes imposed in
640	640	the preceding year).
641	641	"The total tax revenue proposed to be raised this year at the
642	642	proposed tax rate of (insert proposed tax rate) for each $100 of
643	643	taxable value, excluding tax revenue to be raised from new property
644	644	added to the tax roll this year, is (insert amount computed by
645	645	multiplying proposed tax rate by the difference between current
646	646	total value and new property value).
647	647	"The total tax revenue proposed to be raised this year at the
648	648	proposed tax rate of (insert proposed tax rate) for each $100 of
649	649	taxable value, including tax revenue to be raised from new property
650	650	added to the tax roll this year, is (insert amount computed by
651	651	multiplying proposed tax rate by current total value).
652	652	"The (governing body of the taxing unit) is scheduled to vote
653	653	on the tax rate that will result in that tax increase at a public
654	654	meeting to be held on (date of meeting) at (location of meeting,
655	655	including mailing address) at (time of meeting)."
656	656	(e) The meeting to vote on the tax increase may not be
657	657	earlier than the third day or later than the 14th day after the date
658	658	of the second public hearing. The meeting must be held inside the
659	659	boundaries of the taxing unit in a publicly owned building or, if a
660	660	suitable publicly owned building is not available, in a suitable
661	661	building to which the public normally has access. If the governing
662	662	body does not adopt a tax rate that exceeds the lower of the
663	663	rollback tax rate or the same services [effective] tax rate by the
664	664	14th day, it must give a new notice under Subsection (d) before it
665	665	may adopt a rate that exceeds the lower of the rollback tax rate or
666	666	the same services [effective] tax rate.
667	667	SECTION 14. Sections 26.044(c) and 26.0441(c), Tax Code,
668	668	are repealed.
669	669	SECTION 15. This Act applies only to a tax year beginning on
670	670	or after the effective date of this Act.
671	671	SECTION 16. This Act takes effect January 1, 2012.