83R8401 CJC-D
By: Zaffirini S.B. No. 1780
A BILL TO BE ENTITLED
AN ACT
relating to the definition of new property value for purposes of the
calculation of certain ad valorem tax rates for a county.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.012(17), Tax Code, is amended to read
as follows:
(17) "New property value" means:
(A) the total taxable value of property added to
the appraisal roll in the current year by annexation and
improvements listed on the appraisal roll that were made after
January 1 of the preceding tax year, including personal property
located in new improvements that was brought into the unit after
January 1 of the preceding tax year;
(B) property value that is included in the
current total value for the tax year succeeding a tax year in which
any portion of the value of the property was excluded from the total
value because of the application of a tax abatement agreement to all
or a portion of the property, less the value of the property that
was included in the total value for the preceding tax year; [and]
(C) for purposes of an entity created under
Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, property value that is included in the current total
value for the tax year succeeding a tax year in which the following
occurs:
(i) the subdivision of land by plat;
(ii) the installation of water, sewer, or
drainage lines; or
(iii) the paving of undeveloped land; and
(D) if approved by the voters in an election held
as provided by Section 140.008, Local Government Code, for purposes
of a county or a hospital district, the increase in total taxable
value of real property interests in oil or gas in place listed on
the appraisal roll in the current year attributable to the
production of oil or gas from wells completed after January 1 of the
preceding year.
SECTION 2. Chapter 140, Local Government Code, is amended
by adding Section 140.008 to read as follows:
Sec. 140.008. ELECTION TO TREAT INCREASE IN TAXABLE VALUE
OF OIL AND GAS INTERESTS AS NEW PROPERTY VALUE FOR AD VALOREM TAX
RATE CALCULATIONS. (a) In this section, "eligible taxing unit"
means a county or a hospital district that is authorized to impose
and is imposing ad valorem taxes on property.
(b) The governing body of an eligible taxing unit may call
an election to determine whether to treat the increase in total
taxable value of real property interests in oil and gas in place
listed on the appraisal roll in the current year attributable to the
production of oil and gas from wells completed after January 1 of
the preceding tax year as new property value for the purpose of
calculating the effective tax rate of the taxing unit.
(c) The governing body of an eligible taxing unit shall call
an election described by Subsection (b) if the qualified voters of
the taxing unit file a petition requesting the election with the
governing body that is signed by a number of qualified voters of the
taxing unit that is equal to at least five percent of the number of
votes cast in the taxing unit in the most recent gubernatorial
election.
(d) Not later than the 30th day after the date the governing
body receives a petition filed under Subsection (c), the governing
body shall determine whether the petition is valid and enter a
resolution stating its finding. If the governing body fails to act
within the time allowed, the petition is treated as if it had been
found valid.
(e) If the governing body finds that the petition is valid,
or fails to act within the time allowed, the governing body shall
order an election to be held in the eligible taxing unit not later
than the 90th day after the date on which the governing body
received the petition. Section 41.001(a), Election Code, does not
apply to an election held under this section.
(f) At the election, the ballots shall be printed to permit
voting for or against the proposition: "Treating the increase in
the taxable value of real property interests in oil and gas in place
that is attributable to the production of oil and gas from new wells
as new property value for the purpose of calculating the effective
tax rate of (name of eligible taxing unit)."
(g) If a majority of the votes cast in the election favor the
proposition, the proposition is approved and the taxing unit shall
calculate its new property value as provided by Section
26.012(17)(D), Tax Code, for each tax year that begins after the
date the election results are certified.
(h) The revenue received by an eligible taxing unit
attributable to the calculation of new property value as provided
by Section 26.012(17)(D), Tax Code, must be placed in a special
account in the general fund of the taxing unit and may be used only
for:
(1) road construction and repair within the boundaries
of the taxing unit; and
(2) providing indigent health care within the
boundaries of the taxing unit.
SECTION 3. This Act applies to the calculation of certain ad
valorem tax rates for a county only for a tax year beginning on or
after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2014.