Texas 2011 - 82nd Regular

Texas Senate Bill SB1771 Compare Versions

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1	1	By: Williams S.B. No. 1771
2	2	(In the Senate - Filed March 11, 2011; March 23, 2011, read
3	3	first time and referred to Committee on Finance; May 6, 2011,
4	4	reported favorably by the following vote: Yeas 9, Nays 1;
5	5	May 6, 2011, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the provision of information by tax officials related
11	11	to ad valorem tax rates.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subsections (b) and (i), Section 25.19, Tax
14	14	Code, are amended to read as follows:
15	15	(b) The chief appraiser shall separate real from personal
16	16	property and include in the notice for each:
17	17	(1) a list of the taxing units in which the property is
18	18	taxable;
19	19	(2) the appraised value of the property in the
20	20	preceding year;
21	21	(3) the taxable value of the property in the preceding
22	22	year for each taxing unit taxing the property;
23	23	(4) the appraised value of the property for the
24	24	current year and the kind and amount of each partial exemption, if
25	25	any, approved for the current year;
26	26	(5) [if the appraised value is greater than it was in
27	27	the preceding year, the amount of tax that would be imposed on the
28	28	property on the basis of the tax rate for the preceding year;
29	29	[(6)] in italic typeface, the following
30	30	statement: "The Texas Legislature does not set the amount of your
31	31	local taxes. Your property tax burden is decided by your locally
32	32	elected officials, and all inquiries concerning your taxes should
33	33	be directed to those officials";
34	34	(6) [(7)] a detailed explanation of the time and
35	35	procedure for protesting the value;
36	36	(7) [(8)] the date and place the appraisal review
37	37	board will begin hearing protests; and
38	38	(8) [(9)] a brief explanation that the governing body
39	39	of each taxing unit decides whether or not taxes on the property
40	40	will increase and the appraisal district only determines the value
41	41	of the property.
42	42	(i) Delivery with a notice required by Subsection (a) or (g)
43	43	of a copy of the pamphlet published by the comptroller under Section
44	44	5.06 or a copy of the notice published by the chief appraiser under
45	45	Section 41.70 is sufficient to comply with the requirement that the
46	46	notice include the information specified by Subsection (b)(6)
47	47	[(b)(7)] or (g)(3), as applicable.
48	48	SECTION 2. Section 26.012, Tax Code, is amended by adding
49	49	Subdivisions (13-a) and (13-b) to read as follows:
50	50	(13-a) "Last year's maintenance and operations levy"
51	51	means the difference between last year's levy and the sum of last
52	52	year's debt levy and last year's junior college levy.
53	53	(13-b) "Last year's maintenance and operations rate"
54	54	means the rate expressed in dollars per $100 of taxable value
55	55	adopted in the preceding year for maintenance and operations.
56	56	SECTION 3. The heading to Section 26.04, Tax Code, is
57	57	amended to read as follows:
58	58	Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
59	59	EFFECTIVE, SAME SERVICES, AND ROLLBACK TAX RATES.
60	60	SECTION 4. Subsections (b) through (e), (e-1), (f), (i),
61	61	and (j), Section 26.04, Tax Code, are amended to read as follows:
62	62	(b) The assessor shall submit the appraisal roll for the
63	63	unit showing the total appraised, assessed, and taxable values of
64	64	all property and the total taxable value of new property to the
65	65	governing body of the unit not later than the 21st day after the
66	66	date the appraisal roll is certified to the assessor. On or before
67	67	the 21st day after the date the appraisal roll is certified by the
68	68	assessor [by August 1 or as soon thereafter as practicable. By
69	69	August 1 or as soon thereafter as practicable], the taxing unit's
70	70	collector shall certify an estimate of the collection rate for the
71	71	current year to the governing body. If the collector certified an
72	72	anticipated collection rate in the preceding year and the actual
73	73	collection rate in that year exceeded the anticipated rate, the
74	74	collector shall also certify the amount of debt taxes collected in
75	75	excess of the anticipated amount in the preceding year.
76	76	(c) Not later than the 30th day after the date the appraisal
77	77	roll is certified to the assessor, an [An] officer or employee
78	78	designated by the governing body shall calculate the effective tax
79	79	rate, the same services tax rate, and the rollback tax rate for the
80	80	unit, where:
81	81	(1) "Effective tax rate" means a rate expressed in
82	82	dollars per $100 of taxable value calculated according to the
83	83	following formula:
84	84	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
85	85	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
86	86	; [and]
87	87	(2) "Same services tax rate" means a rate expressed in
88	88	dollars per $100 of taxable value calculated according to the
89	89	following formula:
90	90	SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
91	91	LEVY + (NEW PROPERTY VALUE x LAST YEAR'S
92	92	MAINTENANCE AND OPERATIONS RATE))/CURRENT
93	93	TOTAL VALUE] + CURRENT DEBT RATE
94	94	; and
95	95	(3) "Rollback tax rate" means a rate expressed in
96	96	dollars per $100 of taxable value calculated according to the
97	97	following formula:
98	98	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE
99	99	x 1.08) + CURRENT DEBT RATE
100	100	(d) The effective tax rate for a county is the sum of the
101	101	effective tax rates calculated for each type of tax the county
102	102	levies. The same services tax rate for a county is the sum of the
103	103	same services tax rates calculated for each type of tax the county
104	104	levies. The [and the] rollback tax rate for a county is the sum of
105	105	the rollback tax rates calculated for each type of tax the county
106	106	levies.
107	107	(e) Not later than the fifth day after the date the
108	108	designated officer or employee completes the calculations required
109	109	by Subsections (c) and (d) [By August 7 or as soon thereafter as
110	110	practicable], the designated officer or employee shall submit the
111	111	rates to the governing body and provide to the chief appraiser in
112	112	the form prescribed by the comptroller the effective tax rate, the
113	113	same services tax rate, the rollback tax rate, and an explanation of
114	114	how they were calculated. At least 14 days before the date of the
115	115	first meeting of the governing body to consider the budget for the
116	116	current tax year, the designated officer or employee[. He] shall
117	117	deliver by mail to each property owner in the unit or publish in a
118	118	newspaper in the form prescribed by the comptroller:
119	119	(1) last year's [the effective] tax rate, the same
120	120	services [rollback] tax rate, the tax rate required to fund the
121	121	budget for the current tax year, and an explanation of their meaning
122	122	and how they were calculated;
123	123	(2) a statement, including an example calculation,
124	124	that the tax liability of any parcel of taxable property can be
125	125	derived by multiplying the property's taxable value as computed on
126	126	the basis of the notice of appraised value delivered by the
127	127	appraisal district by each tax rate; and
128	128	(3) a statement that adoption by the governing body of
129	129	a tax rate for the current year that is higher than the same
130	130	services tax rate will constitute an overall tax increase [the
131	131	estimated amount of interest and sinking fund balances and the
132	132	estimated amount of maintenance and operation or general fund
133	133	balances remaining at the end of the current fiscal year that are
134	134	not encumbered with or by corresponding existing debt obligation;
135	135	[(3) a schedule of the unit's debt obligations
136	136	showing:
137	137	[(A) the amount of principal and interest that
138	138	will be paid to service the unit's debts in the next year from
139	139	property tax revenue, including payments of lawfully incurred
140	140	contractual obligations providing security for the payment of the
141	141	principal of and interest on bonds and other evidences of
142	142	indebtedness issued on behalf of the unit by another political
143	143	subdivision and, if the unit is created under Section 52, Article
144	144	III, or Section 59, Article XVI, Texas Constitution, payments on
145	145	debts that the unit anticipates to incur in the next calendar year;
146	146	[(B) the amount by which taxes imposed for debt
147	147	are to be increased because of the unit's anticipated collection
148	148	rate; and
149	149	[(C) the total of the amounts listed in
150	150	Paragraphs (A)-(B), less any amount collected in excess of the
151	151	previous year's anticipated collections certified as provided in
152	152	Subsection (b);
153	153	[(4) the amount of additional sales and use tax
154	154	revenue anticipated in calculations under Section 26.041;
155	155	[(5) a statement that the adoption of a tax rate equal
156	156	to the effective tax rate would result in an increase or decrease,
157	157	as applicable, in the amount of taxes imposed by the unit as
158	158	compared to last year's levy, and the amount of the increase or
159	159	decrease;
160	160	[(6) in the year that a taxing unit calculates an
161	161	adjustment under Subsection (i) or (j), a schedule that includes
162	162	the following elements:
163	163	[(A) the name of the unit discontinuing the
164	164	department, function, or activity;
165	165	[(B) the amount of property tax revenue spent by
166	166	the unit listed under Paragraph (A) to operate the discontinued
167	167	department, function, or activity in the 12 months preceding the
168	168	month in which the calculations required by this chapter are made;
169	169	and
170	170	[(C) the name of the unit that operates a
171	171	distinct department, function, or activity in all or a majority of
172	172	the territory of a taxing unit that has discontinued operating the
173	173	distinct department, function, or activity; and
174	174	[(7) in the year following the year in which a taxing
175	175	unit raised its rollback rate as required by Subsection (j), a
176	176	schedule that includes the following elements:
177	177	[(A) the amount of property tax revenue spent by
178	178	the unit to operate the department, function, or activity for which
179	179	the taxing unit raised the rollback rate as required by Subsection
180	180	(j) for the 12 months preceding the month in which the calculations
181	181	required by this chapter are made; and
182	182	[(B) the amount published by the unit in the
183	183	preceding tax year under Subdivision (6)(B)].
184	184	(e-1) The notice requirements imposed by Subsection (e)
185	185	[Subsections (e)(1)-(6)] do not apply to a school district.
186	186	(f) If as a result of consolidation of taxing units a taxing
187	187	unit includes territory that was in two or more taxing units in the
188	188	preceding year, the amount of taxes imposed in each in the preceding
189	189	year is combined for purposes of calculating the effective, same
190	190	services, and rollback tax rates under this section.
191	191	(i) This subsection applies to a taxing unit that has agreed
192	192	by written contract to transfer a distinct department, function, or
193	193	activity to another taxing unit and discontinues operating that
194	194	distinct department, function, or activity if the operation of that
195	195	department, function, or activity in all or a majority of the
196	196	territory of the taxing unit is continued by another existing
197	197	taxing unit or by a new taxing unit. The rollback tax rate of a
198	198	taxing unit to which this subsection applies in the first tax year
199	199	in which a budget is adopted that does not allocate revenue to the
200	200	discontinued department, function, or activity is calculated as
201	201	otherwise provided by this section, except that last year's levy
202	202	used to calculate the effective maintenance and operations rate and
203	203	the same services tax rate of the unit is reduced by the amount of
204	204	maintenance and operations tax revenue spent by the taxing unit to
205	205	operate the department, function, or activity for the 12 months
206	206	preceding the month in which the calculations required by this
207	207	chapter are made and in which the unit operated the discontinued
208	208	department, function, or activity. If the unit did not operate that
209	209	department, function, or activity for the full 12 months preceding
210	210	the month in which the calculations required by this chapter are
211	211	made, the unit shall reduce last year's levy used for calculating
212	212	the effective maintenance and operations rate and the same services
213	213	tax rate of the unit by the amount of the revenue spent in the last
214	214	full fiscal year in which the unit operated the discontinued
215	215	department, function, or activity.
216	216	(j) This subsection applies to a taxing unit that had agreed
217	217	by written contract to accept the transfer of a distinct
218	218	department, function, or activity from another taxing unit and
219	219	operates a distinct department, function, or activity if the
220	220	operation of a substantially similar department, function, or
221	221	activity in all or a majority of the territory of the taxing unit
222	222	has been discontinued by another taxing unit, including a dissolved
223	223	taxing unit. The rollback tax rate of a taxing unit to which this
224	224	subsection applies in the first tax year after the other taxing unit
225	225	discontinued the substantially similar department, function, or
226	226	activity in which a budget is adopted that allocates revenue to the
227	227	department, function, or activity is calculated as otherwise
228	228	provided by this section, except that last year's levy used to
229	229	calculate the effective maintenance and operations rate and the
230	230	same services tax rate of the unit is increased by the amount of
231	231	maintenance and operations tax revenue spent by the taxing unit
232	232	that discontinued operating the substantially similar department,
233	233	function, or activity to operate that department, function, or
234	234	activity for the 12 months preceding the month in which the
235	235	calculations required by this chapter are made and in which the unit
236	236	operated the discontinued department, function, or activity. If
237	237	the unit did not operate the discontinued department, function, or
238	238	activity for the full 12 months preceding the month in which the
239	239	calculations required by this chapter are made, the unit may
240	240	increase last year's levy used to calculate the effective
241	241	maintenance and operations rate and the same services tax rate by an
242	242	amount not to exceed the amount of property tax revenue spent by the
243	243	discontinuing unit to operate the discontinued department,
244	244	function, or activity in the last full fiscal year in which the
245	245	discontinuing unit operated the department, function, or activity.
246	246	SECTION 5. Subsections (a), (c), (e), (g), and (h), Section
247	247	26.041, Tax Code, are amended to read as follows:
248	248	(a) In the first year in which an additional sales and use
249	249	tax is required to be collected, the effective tax rate, same
250	250	services tax rate, and rollback tax rate for the unit are calculated
251	251	according to the following formulas:
252	252	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY)/
253	253	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
254	254	SALES TAX GAIN RATE
255	255	SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
256	256	LEVY + (NEW PROPERTY VALUE x LAST YEAR'S
257	257	MAINTENANCE AND OPERATIONS RATE)) /
258	258	CURRENT TOTAL VALUE] + CURRENT DEBT RATE -
259	259	SALES TAX GAIN RATE
260	260	and
261	261	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
262	262	1.08) + CURRENT DEBT RATE - SALES TAX GAIN
263	263	RATE
264	264	where "sales tax gain rate" means a number expressed in dollars per
265	265	$100 of taxable value, calculated by dividing the revenue that will
266	266	be generated by the additional sales and use tax in the following
267	267	year as calculated under Subsection (d) of this section by the
268	268	current total value.
269	269	(c) In a year in which a taxing unit that has been imposing
270	270	an additional sales and use tax ceases to impose an additional sales
271	271	and use tax the effective tax rate, same services tax rate, and
272	272	rollback tax rate for the unit are calculated according to the
273	273	following formulas:
274	274	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
275	275	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
276	276	SALES TAX LOSS RATE
277	277	SAME SERVICES TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
278	278	LEVY + (NEW PROPERTY VALUE x LAST YEAR'S
279	279	MAINTENANCE AND OPERATIONS RATE))/CURRENT
280	280	TOTAL VALUE] + CURRENT DEBT RATE + SALES
281	281	TAX LOSS RATE
282	282	and
283	283	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
284	284	EXPENSE x 1.08)/([TOTAL] CURRENT TOTAL VALUE -
285	285	NEW PROPERTY VALUE)] + CURRENT DEBT RATE
286	286	where "sales tax loss rate" means a number expressed in dollars per
287	287	$100 of taxable value, calculated by dividing the amount of sales
288	288	and use tax revenue generated in the last four quarters for which
289	289	the information is available by the current total value and "last
290	290	year's maintenance and operations expense" means the amount spent
291	291	for maintenance and operations from property tax and additional
292	292	sales and use tax revenues in the preceding year.
293	293	(e) If a city that imposes an additional sales and use tax
294	294	receives payments under the terms of a contract executed before
295	295	January 1, 1986, in which the city agrees not to annex certain
296	296	property or a certain area and the owners or lessees of the property
297	297	or of property in the area agree to pay at least annually to the city
298	298	an amount determined by reference to all or a percentage of the
299	299	property tax rate of the city and all or a part of the value of the
300	300	property subject to the agreement or included in the area subject to
301	301	the agreement, the governing body, by order adopted by a majority
302	302	vote of the governing body, may direct the designated officer or
303	303	employee to add to the effective, same services, and rollback tax
304	304	rates the amount that, when applied to the total taxable value
305	305	submitted to the governing body, would produce an amount of taxes
306	306	equal to the difference between the total amount of payments for the
307	307	tax year under contracts described by this subsection under the
308	308	rollback tax rate calculated under this section and the total
309	309	amount of payments for the tax year that would have been obligated
310	310	to the city if the city had not adopted an additional sales and use
311	311	tax.
312	312	(g) If the rate of the additional sales and use tax is
313	313	increased, the designated officer or employee shall make two
314	314	projections, in the manner provided by Subsection (d) of this
315	315	section, of the revenue generated by the additional sales and use
316	316	tax in the following year. The first projection must take into
317	317	account the increase and the second projection must not take into
318	318	account the increase. The officer or employee shall then subtract
319	319	the amount of the result of the second projection from the amount of
320	320	the result of the first projection to determine the revenue
321	321	generated as a result of the increase in the additional sales and
322	322	use tax. In the first year in which an additional sales and use tax
323	323	is increased:
324	324	(1) [,] the effective tax rate for the unit is the
325	325	effective tax rate before the increase minus a number the numerator
326	326	of which is the revenue generated as a result of the increase in the
327	327	additional sales and use tax, as determined under this subsection,
328	328	and the denominator of which is the current total value minus the
329	329	new property value; and
330	330	(2) the same services tax rate for the unit is the same
331	331	services tax rate before the increase minus a number the numerator
332	332	of which is the revenue generated as a result of the increase in the
333	333	additional sales and use tax, as determined under this subsection,
334	334	and the denominator of which is the current total value minus the
335	335	new property value.
336	336	(h) If the rate of the additional sales and use tax is
337	337	decreased, the designated officer or employee shall make two
338	338	projections, in the manner provided by Subsection (d) of this
339	339	section, of the revenue generated by the additional sales and use
340	340	tax in the following year. The first projection must take into
341	341	account the decrease and the second projection must not take into
342	342	account the decrease. The officer or employee shall then subtract
343	343	the amount of the result of the first projection from the amount of
344	344	the result of the second projection to determine the revenue lost as
345	345	a result of the decrease in the additional sales and use tax. In the
346	346	first year in which an additional sales and use tax is decreased:
347	347	(1) [,] the effective tax rate for the unit is the
348	348	effective tax rate before the decrease plus a number the numerator
349	349	of which is the revenue lost as a result of the decrease in the
350	350	additional sales and use tax, as determined under this subsection,
351	351	and the denominator of which is the current total value minus the
352	352	new property value; and
353	353	(2) the same services tax rate for the unit is the same
354	354	services tax rate before the decrease plus a number the numerator of
355	355	which is the revenue lost as a result of the decrease in the
356	356	additional sales and use tax, as determined under this subsection,
357	357	and the denominator of which is the current total value minus the
358	358	new property value.
359	359	SECTION 6. The heading to Section 26.043, Tax Code, is
360	360	amended to read as follows:
361	361	Sec. 26.043. ROLLBACK, EFFECTIVE, AND SAME SERVICES TAX
362	362	RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
363	363	SECTION 7. Subsections (a) and (b), Section 26.043, Tax
364	364	Code, are amended to read as follows:
365	365	(a) In the tax year in which a city has set an election on
366	366	the question of whether to impose a local sales and use tax under
367	367	Subchapter H, Chapter 453, Transportation Code, the officer or
368	368	employee designated to make the calculations provided by Section
369	369	26.04 may not make those calculations until the outcome of the
370	370	election is determined. If the election is determined in favor of
371	371	the imposition of the tax, the representative shall subtract from
372	372	the city's rollback, [and] effective, and same services tax rates
373	373	the amount that, if applied to the city's current total value, would
374	374	impose an amount equal to the amount of property taxes budgeted in
375	375	the current tax year to pay for expenses related to mass transit
376	376	services.
377	377	(b) In a tax year to which this section applies, a reference
378	378	in this chapter to the city's effective, same services, or rollback
379	379	tax rate refers to that rate as adjusted under this section.
380	380	SECTION 8. The heading to Section 26.044, Tax Code, is
381	381	amended to read as follows:
382	382	Sec. 26.044. EFFECTIVE AND SAME SERVICES TAX RATES [RATE]
383	383	TO PAY FOR STATE CRIMINAL JUSTICE MANDATE.
384	384	SECTION 9. Subsections (a) and (b), Section 26.044, Tax
385	385	Code, are amended to read as follows:
386	386	(a) The first time that a county adopts a tax rate after
387	387	September 1, 1991, in which the state criminal justice mandate
388	388	applies to the county, the effective maintenance and operation rate
389	389	and the same services tax rate for the county are [is] increased by
390	390	the rate calculated according to the following formula:
391	391	(State Criminal Justice Mandate) / (Current Total Value - New
392	392	Property Value)
393	393	(b) In the second and subsequent years that a county adopts
394	394	a tax rate, if the amount spent by the county for the state criminal
395	395	justice mandate increased over the previous year, the effective
396	396	maintenance and operation rate and the same services tax rate for
397	397	the county are [is] increased by the rate calculated according to
398	398	the following formula:
399	399	(This Year's State Criminal Justice Mandate - Previous Year's State
400	400	Criminal Justice Mandate) / (Current Total Value - New Property
401	401	Value)
402	402	SECTION 10. Subsections (a) and (b), Section 26.0441, Tax
403	403	Code, are amended to read as follows:
404	404	(a) In the first tax year in which a taxing unit adopts a tax
405	405	rate after January 1, 2000, and in which the enhanced minimum
406	406	eligibility standards for indigent health care established under
407	407	Section 61.006, Health and Safety Code, apply to the taxing unit,
408	408	the effective maintenance and operations rate and the same services
409	409	tax rate for the taxing unit are [is] increased by the rate computed
410	410	according to the following formula:
411	411	Amount of Increase = Enhanced Indigent Health Care Expenditures /
412	412	(Current Total Value - New Property Value)
413	413	(b) In each subsequent tax year, if the taxing unit's
414	414	enhanced indigent health care expenses exceed the amount of those
415	415	expenses for the preceding year, the effective maintenance and
416	416	operations rate and the same services tax rate for the taxing unit
417	417	are [is] increased by the rate computed according to the following
418	418	formula:
419	419	Amount of Increase = (Current Tax Year's Enhanced Indigent Health
420	420	Care Expenditures - Preceding Tax Year's Indigent Health Care
421	421	Expenditures) / (Current Total Value - New Property Value)
422	422	SECTION 11. Section 26.05, Tax Code, is amended by amending
423	423	Subsections (a) through (d) and (g) and adding Subsection (d-1) to
424	424	read as follows:
425	425	(a) The governing body of each taxing unit, before the later
426	426	of September 30 or the 90th [60th] day after the date the certified
427	427	appraisal roll is received by the taxing unit, shall adopt a tax
428	428	rate for the current tax year and shall notify the assessor for the
429	429	unit of the rate adopted. The tax rate consists of two components,
430	430	each of which must be approved separately. The components are:
431	431	(1) the following rate, as applicable:
432	432	(A) for a taxing unit other than a school
433	433	district, the rate that, if applied to the total taxable value, will
434	434	impose an amount equal to the amount computed by:
435	435	(i) adding the following amounts:
436	436	(a) the amount of principal and
437	437	interest that will be paid to service the unit's debts in the next
438	438	year from property tax revenue, including payments of lawfully
439	439	incurred contractual obligations providing security for the
440	440	payment of the principal of and interest on bonds and other
441	441	evidences of indebtedness issued on behalf of the unit by another
442	442	political subdivision and, if the unit is created under Section 52,
443	443	Article III, or Section 59, Article XVI, Texas Constitution,
444	444	payments on debts that the unit anticipates to incur in the next
445	445	calendar year; and
446	446	(b) the amount by which taxes imposed
447	447	for debt are to be increased because of the unit's anticipated
448	448	collection rate; and
449	449	(ii) subtracting from the amount computed
450	450	under Subparagraph (i) the sum of the following amounts:
451	451	(a) any amount collected in excess of
452	452	the previous year's anticipated collections certified as provided
453	453	by Section 26.04(b); and
454	454	(b) [the total amount published under
455	455	Section 26.04(e)(3)(C), less] any amount of additional sales and
456	456	use tax revenue that will be used to pay debt service; or
457	457	(B) [, or,] for a school district, the rate
458	458	published under Section 44.004(c)(5)(A)(ii)(b), Education Code;
459	459	and
460	460	(2) the rate that, if applied to the total taxable
461	461	value, will impose the amount of taxes needed to fund maintenance
462	462	and operation expenditures of the unit for the next year.
463	463	(b) A taxing unit may not impose property taxes in any year
464	464	until the governing body has adopted a tax rate for that year, and
465	465	the annual tax rate must be set by ordinance, resolution, or order,
466	466	depending on the method prescribed by law for adoption of a law by
467	467	the governing body. The vote on the ordinance, resolution, or order
468	468	setting the tax rate must be separate from the vote adopting the
469	469	budget. The vote on the ordinance, resolution, or order setting a
470	470	tax rate that exceeds the same services [effective] tax rate must be
471	471	a record vote. A motion to adopt an ordinance, resolution, or order
472	472	setting a tax rate that exceeds the same services [effective] tax
473	473	rate must be made in the following form: "I move that the property
474	474	tax rate be increased by the adoption of a tax rate of (specify tax
475	475	rate), which is effectively a (insert percentage by which the
476	476	proposed tax rate exceeds the same services [effective] tax rate)
477	477	percent increase in the tax rate." If the ordinance, resolution, or
478	478	order sets a tax rate that, if applied to the total taxable value,
479	479	will impose an amount of taxes [to fund maintenance and operation
480	480	expenditures of the taxing unit] that exceeds the amount of taxes
481	481	imposed [for that purpose] in the preceding year, the taxing unit
482	482	must:
483	483	(1) include in the ordinance, resolution, or order in
484	484	type larger than the type used in any other portion of the document:
485	485	(A) the following statement: "THIS TAX RATE WILL
486	486	RAISE MORE TAXES [FOR MAINTENANCE AND OPERATIONS] THAN LAST YEAR'S
487	487	TAX RATE."; and
488	488	(B) if the tax rate exceeds the same services tax
489	489	[effective maintenance and operations] rate, the following
490	490	statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
491	491	PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE SAME SERVICES TAX
492	492	[EFFECTIVE MAINTENANCE AND OPERATIONS] RATE) PERCENT AND WILL RAISE
493	493	TAXES [FOR MAINTENANCE AND OPERATIONS] ON A $100,000 HOME BY
494	494	APPROXIMATELY $(Insert amount)."; and
495	495	(2) include on the home page of any Internet website
496	496	operated by the unit:
497	497	(A) the following statement: "(Insert name of
498	498	unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES [FOR MAINTENANCE
499	499	AND OPERATIONS] THAN LAST YEAR'S TAX RATE"; and
500	500	(B) if the tax rate exceeds the same services tax
501	501	[effective maintenance and operations] rate, the following
502	502	statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
503	503	PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE SAME SERVICES TAX
504	504	[EFFECTIVE MAINTENANCE AND OPERATIONS] RATE) PERCENT AND WILL RAISE
505	505	TAXES [FOR MAINTENANCE AND OPERATIONS] ON A $100,000 HOME BY
506	506	APPROXIMATELY $(Insert amount)."
507	507	(c) If the designated officer or employee [governing body of
508	508	a taxing unit] does not comply with Section 26.04(e) by the date
509	509	required by that subsection and the failure to comply was caused by
510	510	circumstances beyond the designated officer's or employee's
511	511	control, such as a natural disaster [adopt a tax rate before the
512	512	date required by Subsection (a)], the tax rate for the taxing unit
513	513	for that tax year is the lower of the same services [effective] tax
514	514	rate calculated for that tax year or the tax rate adopted by the
515	515	taxing unit for the preceding tax year. A tax rate established by
516	516	this subsection is treated as an adopted tax rate. Before the fifth
517	517	day after the establishment of a tax rate by this subsection, the
518	518	governing body of the taxing unit must ratify the applicable tax
519	519	rate in the manner required by Subsection (b).
520	520	(d) The governing body of a taxing unit other than a school
521	521	district may not adopt a tax rate that exceeds the lower of the
522	522	rollback tax rate or the same services [effective] tax rate
523	523	calculated as provided by this chapter until the governing body has
524	524	complied with Subsection (d-1) of this section and has held two
525	525	public hearings on the proposed tax rate and [has] otherwise
526	526	complied with Section 26.06 and Section 26.065. The governing body
527	527	of a taxing unit shall reduce a tax rate set by law or by vote of the
528	528	electorate to the lower of the rollback tax rate or the same
529	529	services [effective] tax rate and may not adopt a higher rate unless
530	530	it first complies with Section 26.06.
531	531	(d-1) Before giving notice of the public hearings on the
532	532	proposed tax rate under Section 26.06, the governing body of a
533	533	taxing unit that is required to comply with that section must take a
534	534	record vote on a proposal to place consideration of an increase in
535	535	taxes on the agenda for the meeting at which the governing body will
536	536	adopt the tax rate. The motion for the vote must be made in the
537	537	following form: "I move that a proposal to increase property taxes
538	538	by the adoption of a tax rate of (specify tax rate) be placed on the
539	539	agenda for the meeting to be held on (date at which the governing
540	540	body anticipates adopting the tax rate)."
541	541	(g) Notwithstanding Subsection (a), the governing body of a
542	542	school district that elects to adopt a tax rate before the adoption
543	543	of a budget for the fiscal year that begins in the current tax year
544	544	may adopt a tax rate for the current tax year before receipt of the
545	545	certified appraisal roll for the school district if the chief
546	546	appraiser of the appraisal district in which the school district
547	547	participates has certified to the assessor for the school district
548	548	an estimate of the taxable value of property in the school district
549	549	as provided by Section 26.01(e). If a school district adopts a tax
550	550	rate under this subsection, the effective tax rate, the same
551	551	services tax rate, and the rollback tax rate of the district shall
552	552	be calculated based on the certified estimate of taxable value.
553	553	SECTION 12. Subsection (e), Section 26.052, Tax Code, is
554	554	amended to read as follows:
555	555	(e) Public notice provided under Subsection (c) must
556	556	specify:
557	557	(1) the tax rate that the governing body proposes to
558	558	adopt;
559	559	(2) the date, time, and location of the meeting of the
560	560	governing body of the taxing unit at which the governing body will
561	561	consider adopting the proposed tax rate; and
562	562	(3) if the proposed tax rate for the taxing unit
563	563	exceeds the unit's same services [effective] tax rate calculated as
564	564	provided by Section 26.04, a statement substantially identical to
565	565	the following: "The proposed tax rate would increase total taxes in
566	566	(name of taxing unit) by (percentage by which the proposed tax rate
567	567	exceeds the same services [effective] tax rate)."
568	568	SECTION 13. Subsections (b), (d), and (e), Section 26.06,
569	569	Tax Code, are amended to read as follows:
570	570	(b) The notice of a public hearing may not be smaller than
571	571	one-quarter page of a standard-size or a tabloid-size newspaper,
572	572	and the headline on the notice must be in 24-point or larger type.
573	573	The notice must contain a statement in the following form:
574	574	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
575	575	"The (name of the taxing unit) will hold two public hearings
576	576	on a proposal to increase total tax revenues from properties on the
577	577	tax roll in the preceding tax year by (percentage by which proposed
578	578	tax rate exceeds lower of rollback tax rate or same services
579	579	[effective] tax rate calculated under this chapter) percent. Your
580	580	individual taxes may increase at a greater or lesser rate, or even
581	581	decrease, depending on the change in the taxable value of your
582	582	property in relation to the change in taxable value of all other
583	583	property and the tax rate that is adopted.
584	584	"The first public hearing will be held on (date and time) at
585	585	(meeting place).
586	586	"The second public hearing will be held on (date and time) at
587	587	(meeting place).
588	588	"(Names of all members of the governing body, showing how
589	589	each voted on the proposal to consider the tax increase or, if one
590	590	or more were absent, indicating the absences.)
591	591	"The average taxable value of a residence homestead in (name
592	592	of taxing unit) last year was $____ (average taxable value of a
593	593	residence homestead in the taxing unit for the preceding tax year,
594	594	disregarding residence homestead exemptions available only to
595	595	disabled persons or persons 65 years of age or older). Based on
596	596	last year's tax rate of $____ (preceding year's adopted tax rate)
597	597	per $100 of taxable value, the amount of taxes imposed last year on
598	598	the average home was $____ (tax on average taxable value of a
599	599	residence homestead in the taxing unit for the preceding tax year,
600	600	disregarding residence homestead exemptions available only to
601	601	disabled persons or persons 65 years of age or older).
602	602	"The average taxable value of a residence homestead in (name
603	603	of taxing unit) this year is $____ (average taxable value of a
604	604	residence homestead in the taxing unit for the current tax year,
605	605	disregarding residence homestead exemptions available only to
606	606	disabled persons or persons 65 years of age or older). If the
607	607	governing body adopts the same services [effective] tax rate for
608	608	this year of $____ (same services [effective] tax rate) per $100 of
609	609	taxable value, the amount of taxes imposed this year on the average
610	610	home would be $____ (tax on average taxable value of a residence
611	611	homestead in the taxing unit for the current tax year, disregarding
612	612	residence homestead exemptions available only to disabled persons
613	613	or persons 65 years of age or older).
614	614	"If the governing body adopts the proposed tax rate of $____
615	615	(proposed tax rate) per $100 of taxable value, the amount of taxes
616	616	imposed this year on the average home would be $____ (tax on the
617	617	average taxable value of a residence in the taxing unit for the
618	618	current year disregarding residence homestead exemptions available
619	619	only to disabled persons or persons 65 years of age or older).
620	620	"The taxes on any parcel of taxable property can be derived by
621	621	multiplying the property's taxable value as computed on the basis
622	622	of the notice of appraised value delivered by the appraisal
623	623	district by each of the above tax rates.
624	624	"Members of the public are encouraged to attend the hearings
625	625	and express their views."
626	626	(d) At the public hearings the governing body shall announce
627	627	the date, time, and place of the meeting at which it will vote on the
628	628	proposed tax rate. After each hearing the governing body shall
629	629	give notice of the meeting at which it will vote on the proposed tax
630	630	rate and the notice shall be in the same form as prescribed by
631	631	Subsections (b) and (c), except that it must state the following:
632	632	"NOTICE OF TAX REVENUE INCREASE
633	633	"The (name of the taxing unit) conducted public hearings on
634	634	(date of first hearing) and (date of second hearing) on a proposal
635	635	to increase the total tax revenues of the (name of the taxing unit)
636	636	from properties on the tax roll in the preceding year by (percentage
637	637	by which proposed tax rate exceeds lower of rollback tax rate or
638	638	same services [effective] tax rate calculated under this chapter)
639	639	percent.
640	640	"The total tax revenue proposed to be raised last year at last
641	641	year's tax rate of (insert tax rate for the preceding year) for each
642	642	$100 of taxable value was (insert total amount of taxes imposed in
643	643	the preceding year).
644	644	"The total tax revenue proposed to be raised this year at the
645	645	proposed tax rate of (insert proposed tax rate) for each $100 of
646	646	taxable value, excluding tax revenue to be raised from new property
647	647	added to the tax roll this year, is (insert amount computed by
648	648	multiplying proposed tax rate by the difference between current
649	649	total value and new property value).
650	650	"The total tax revenue proposed to be raised this year at the
651	651	proposed tax rate of (insert proposed tax rate) for each $100 of
652	652	taxable value, including tax revenue to be raised from new property
653	653	added to the tax roll this year, is (insert amount computed by
654	654	multiplying proposed tax rate by current total value).
655	655	"The (governing body of the taxing unit) is scheduled to vote
656	656	on the tax rate that will result in that tax increase at a public
657	657	meeting to be held on (date of meeting) at (location of meeting,
658	658	including mailing address) at (time of meeting)."
659	659	(e) The meeting to vote on the tax increase may not be
660	660	earlier than the third day or later than the 14th day after the date
661	661	of the second public hearing. The meeting must be held inside the
662	662	boundaries of the taxing unit in a publicly owned building or, if a
663	663	suitable publicly owned building is not available, in a suitable
664	664	building to which the public normally has access. If the governing
665	665	body does not adopt a tax rate that exceeds the lower of the
666	666	rollback tax rate or the same services [effective] tax rate by the
667	667	14th day, it must give a new notice under Subsection (d) before it
668	668	may adopt a rate that exceeds the lower of the rollback tax rate or
669	669	the same services [effective] tax rate.
670	670	SECTION 14. Subsection (c), Section 26.044, and Subsection
671	671	(c), Section 26.0441, Tax Code, are repealed.
672	672	SECTION 15. This Act applies only to a tax year beginning on
673	673	or after the effective date of this Act.
674	674	SECTION 16. This Act takes effect January 1, 2012.
675	675	* * * * *