82R9184 SMH-F
By: Williams S.B. No. 1774
A BILL TO BE ENTITLED
AN ACT
relating to the procedure for the adoption of an ad valorem tax
rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.012, Tax Code, is amended by amending
Subdivisions (4), (9), (13), and (15) and adding Subdivision (16-a)
to read as follows:
(4) "Current debt rate" means a rate expressed in
dollars per $100 of taxable value and calculated according to the
following formula:
CURRENT DEBT RATE = [(]CURRENT DEBT SERVICE [- EXCESS COLLECTIONS)]
/ (CURRENT TOTAL VALUE X COLLECTION RATE) [+ CURRENT JUNIOR COLLEGE
LEVY / CURRENT TOTAL VALUE]
(9) "Effective maintenance and operations rate" means
a rate expressed in dollars per $100 of taxable value and calculated
according to the following formula:
EFFECTIVE MAINTENANCE AND OPERATIONS RATE =
[(LAST YEAR'S LEVY FOR MAINTENANCE AND OPERATIONS - LOST PROPERTY
LEVY FOR MAINTENANCE AND OPERATIONS) + MAINTENANCE AND OPERATIONS
LEVY ON NEW PROPERTY VALUE] / CURRENT TOTAL VALUE [LAST YEAR'S LEVY
- LAST YEAR'S DEBT LEVY - LAST YEAR'S JUNIOR COLLEGE LEVY / (CURRENT
TOTAL VALUE - NEW PROPERTY VALUE)]
(13) "Last year's levy for maintenance and operations"
means the total of:
(A) the amount of taxes that would be generated
by multiplying the [total] tax rate adopted by the governing body in
the preceding year for maintenance and operations by the total
taxable value of property on the appraisal roll for the preceding
year, including:
(i) taxable value that was reduced in an
appeal under Chapter 42; and
(ii) all appraisal roll supplements and
corrections other than corrections made pursuant to Section
25.25(d), as of the date of the calculation, except that last year's
taxable value for a school district excludes the total value of
homesteads that qualified for a tax limitation as provided by
Section 11.26 and last year's taxable value for a county,
municipality, or junior college district excludes the total value
of homesteads that qualified for a tax limitation as provided by
Section 11.261; and
(B) the amount of taxes for maintenance and
operations refunded by the taxing unit in the preceding year for tax
years before that year.
(15) "Lost property levy for maintenance and
operations" means the amount of taxes levied for maintenance and
operations in the preceding year on property value that was taxable
in the preceding year but is not taxable in the current year because
the property is exempt in the current year under a provision of this
code other than Section 11.251 or 11.253, the property has
qualified for special appraisal under Chapter 23 in the current
year, or the property is located in territory that has ceased to be
a part of the unit since the preceding year.
(16-a) "Maintenance and operations levy on new
property value" means the amount of taxes that would be generated by
multiplying the tax rate adopted by the governing body for
maintenance and operations in the preceding year by the new
property value.
SECTION 2. Sections 26.04(c), (d), (e), (e-1), (f), and
(g), Tax Code, are amended to read as follows:
(c) An officer or employee designated by the governing body
shall calculate the effective maintenance and operations [tax]
rate, the current debt rate, the effective tax rate, and the
rollback tax rate for the unit, where:
(1) "Effective tax rate" means the sum of the
effective maintenance and operations rate and the current debt rate
expressed in dollars per $100 of taxable value [a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
[EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)]
; and
(2) "Rollback tax rate" means:
(A) for a taxing unit other than a school
district, a rate expressed in dollars per $100 of taxable value
calculated according to the following formula:
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
1.08) + CURRENT DEBT RATE
; and
(B) for a school district, a rate calculated in
the manner provided by Section 26.08.
(d) The effective maintenance and operations rate for a
county is the sum of the effective maintenance and operations rates
calculated for each type of tax the county levies. The effective
tax rate for a county is the sum of the effective tax rates
calculated for each type of tax the county levies. The [and the]
rollback tax rate for a county is the sum of the rollback tax rates
calculated for each type of tax the county levies.
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. The designated officer or employee [He] shall
electronically deliver [by mail] to [each property owner in the
unit or publish in a newspaper in the form prescribed by] the
comptroller in a format prescribed by the comptroller:
(1) the effective maintenance and operations rate, the
current debt rate, the effective tax rate, the rollback tax rate,
and an explanation of how they were calculated; and
(2) the estimated amount of [interest and sinking]
fund balances used for debt service and the estimated amount of
maintenance and operation or general fund balances remaining at the
end of the current fiscal year that are not encumbered with or by
corresponding existing debt obligation[;
[(3) a schedule of the unit's debt obligations
showing:
[(A) the amount of principal and interest that
will be paid to service the unit's debts in the next year from
property tax revenue, including payments of lawfully incurred
contractual obligations providing security for the payment of the
principal of and interest on bonds and other evidences of
indebtedness issued on behalf of the unit by another political
subdivision and, if the unit is created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, payments on
debts that the unit anticipates to incur in the next calendar year;
[(B) the amount by which taxes imposed for debt
are to be increased because of the unit's anticipated collection
rate; and
[(C) the total of the amounts listed in
Paragraphs (A)-(B), less any amount collected in excess of the
previous year's anticipated collections certified as provided in
Subsection (b);
[(4) the amount of additional sales and use tax
revenue anticipated in calculations under Section 26.041;
[(5) a statement that the adoption of a tax rate equal
to the effective tax rate would result in an increase or decrease,
as applicable, in the amount of taxes imposed by the unit as
compared to last year's levy, and the amount of the increase or
decrease;
[(6) in the year that a taxing unit calculates an
adjustment under Subsection (i) or (j), a schedule that includes
the following elements:
[(A) the name of the unit discontinuing the
department, function, or activity;
[(B) the amount of property tax revenue spent by
the unit listed under Paragraph (A) to operate the discontinued
department, function, or activity in the 12 months preceding the
month in which the calculations required by this chapter are made;
and
[(C) the name of the unit that operates a
distinct department, function, or activity in all or a majority of
the territory of a taxing unit that has discontinued operating the
distinct department, function, or activity; and
[(7) in the year following the year in which a taxing
unit raised its rollback rate as required by Subsection (j), a
schedule that includes the following elements:
[(A) the amount of property tax revenue spent by
the unit to operate the department, function, or activity for which
the taxing unit raised the rollback rate as required by Subsection
(j) for the 12 months preceding the month in which the calculations
required by this chapter are made; and
[(B) the amount published by the unit in the
preceding tax year under Subdivision (6)(B)].
(e-1) The comptroller shall post the information provided
under Subsection (e)(1) on the comptroller's Internet website not
later than the seventh day after the date the comptroller receives
the information. The taxing unit shall publish the information in a
local newspaper of general circulation in the taxing unit in a
format prescribed by the comptroller, which must include a
toll-free telephone number for the public to call for answers to
technical questions concerning the calculation of the tax rates by
taxing units. [The notice requirements imposed by Subsections
(e)(1)-(6) do not apply to a school district.]
(f) If as a result of consolidation of taxing units a taxing
unit includes territory that was in two or more taxing units in the
preceding year, the amount of taxes imposed in each in the preceding
year is combined for purposes of calculating the effective
maintenance and operations rate, effective tax rate, and rollback
tax rate [rates] under this section.
(g) A [person who owns taxable property is entitled to an
injunction prohibiting the] taxing unit may not adopt [in which the
property is taxable from adopting] a tax rate if:
(1) the comptroller determines that the assessor or
designated officer or employee of the unit, as applicable, has not
complied with the computation [or publication] requirements of this
section and the failure to comply was not in good faith; or
(2) the assessor or designated officer or employee of
the unit has not delivered to the comptroller the information
required by Subsection (e) in the time and manner prescribed by the
comptroller.
SECTION 3. Section 26.05(a), Tax Code, is amended to read as
follows:
(a) The governing body of each taxing unit, before the later
of September 30 or the 60th day after the date the certified
appraisal roll is received by the taxing unit, shall adopt a tax
rate for the current tax year and shall notify the assessor for the
unit of the rate adopted. The tax rate consists of two components,
each of which must be approved separately. The components are:
(1) the rate for debt service [a taxing unit other than
a school district, the rate that, if applied to the total taxable
value, will impose the total amount published under Section
26.04(e)(3)(C), less any amount of additional sales and use tax
revenue that will be used to pay debt service, or, for a school
district, the rate published under Section 44.004(c)(5)(A)(ii)(b),
Education Code]; and
(2) the rate for maintenance and operations [that, if
applied to the total taxable value, will impose the amount of taxes
needed to fund maintenance and operation expenditures of the unit
for the next year].
SECTION 4. Section 321.106(e), Tax Code, is amended to read
as follows:
(e) If, in a municipality where a fire control, prevention,
and emergency medical services district is composed of the whole
municipality, a municipal sales and use tax or a municipal sales and
use tax rate increase for the purpose of financing a fire control,
prevention, and emergency medical services district is approved,
the municipality is responsible for distributing to the district
that portion of the municipal sales and use tax revenue received
from the comptroller that is to be used for the purposes of
financing the fire control, prevention, and emergency medical
services district. Not later than the 10th day after the date the
municipality receives money under this section from the
comptroller, the municipality shall make the distribution in the
proportion that the fire control, prevention, and emergency medical
services portion of the tax rate bears to the total sales and use
tax rate of the municipality. [The amounts distributed to a fire
control, prevention, and emergency medical services district are
not considered to be sales and use tax revenue for the purpose of
property tax reduction and computation of the municipal tax rate
under Section 26.041.]
SECTION 5. Section 321.108(f), Tax Code, is amended to read
as follows:
(f) If, in a municipality in which a crime control and
prevention district is composed of the whole municipality, a
municipal sales and use tax or a municipal sales and use tax rate
increase for the purpose of financing a crime control and
prevention district is approved, the municipality is responsible
for distributing to the district that portion of the municipal
sales and use tax revenue received from the comptroller that is to
be used for the purposes of financing the crime control and
prevention district. Not later than the 10th day after the date
the municipality receives money under this section from the
comptroller, the municipality shall make the distribution in the
proportion that the crime control and prevention portion of the tax
rate bears to the total sales and use tax rate of the
municipality. [The amounts distributed to a crime control and
prevention district are not considered to be additional municipal
sales and use tax revenue for the purpose of property tax reduction
and computation of the municipal tax rate under Section 26.041.]
SECTION 6. Section 321.507(a), Tax Code, is amended to read
as follows:
(a) In each year in which a municipality imposes an
additional municipal sales and use tax, if the revenue from the
collection of the additional tax exceeds the amount of taxes
computed for the municipality under Section 26.04(c), [except for
the amount required to be deposited in a special account under
Subsection (b),] the excess shall be deposited in an account to be
called the municipal sales tax debt service fund. Revenue
deposited in the municipal sales tax debt service fund may be spent
only for the reduction of lawful debts of the municipality, except
that deposits that exceed the amount of revenue needed to pay the
debt service needs of the municipality in the current year may be
used for any municipal purpose consistent with the municipal
budget.
SECTION 7. Section 323.105(f), Tax Code, is amended to read
as follows:
(f) If, in a county where a crime control and prevention
district is composed of the whole county, a county sales and use tax
or a county sales and use tax rate increase for the purpose of
financing a crime control and prevention district is approved, the
county is responsible for distributing to the district that portion
of the county sales and use tax revenue received from the
comptroller that is to be used for the purposes of financing the
crime control and prevention district. Not later than the 10th day
after the date the county receives funds under this section from the
comptroller, the county shall make the distribution in the
proportion that the crime control and prevention portion of the tax
rate bears to the total sales and use tax rate of the county. [The
amounts distributed to a crime control and prevention district are
not considered to be sales and use tax revenue for the purpose of
property tax reduction and computation of the county tax rate under
Section 26.041, Tax Code.]
SECTION 8. Section 323.505(a), Tax Code, is amended to read
as follows:
(a) The money received by a county under this chapter is for
the use and benefit of the county and shall be used for the
replacement of property tax revenue lost as a result of the adoption
of the taxes authorized by this chapter. The [Except as provided by
Subsection (b), the] revenue in excess of the revenue used to
replace those property taxes shall be used for the reduction of
indebtedness of the county. After all indebtedness is paid, the
excess may be used for any purpose for which county general revenue
may be used. A county may not pledge anticipated revenue from this
source to secure the payment of bonds or other indebtedness for a
period longer than one year.
SECTION 9. The following provisions of the Tax Code are
repealed:
(1) Sections 26.01(c) and (d);
(2) Sections 26.012(1), (5), (10), (11), (12), and
(14);
(3) Sections 26.04(h), (i), and (j);
(4) Section 26.041;
(5) Section 26.043;
(6) Section 26.044;
(7) Section 26.0441;
(8) Section 26.045;
(9) Section 31.01(i);
(10) Section 321.507(b); and
(11) Section 323.505(b).
SECTION 10. This Act applies only to ad valorem taxes
imposed for a tax year beginning on or after the effective date of
this Act.
SECTION 11. This Act takes effect January 1, 2012.