| 1 | 1 | | 84R5343 LEH-F |
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| 2 | 2 | | By: Isaac H.B. No. 1086 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the form of a motion to adopt an ordinance, resolution, |
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| 8 | 8 | | or order setting an ad valorem tax rate that exceeds the effective |
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| 9 | 9 | | tax rate. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 26.05(b), Tax Code, is amended to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | (b) A taxing unit may not impose property taxes in any year |
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| 14 | 14 | | until the governing body has adopted a tax rate for that year, and |
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| 15 | 15 | | the annual tax rate must be set by ordinance, resolution, or order, |
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| 16 | 16 | | depending on the method prescribed by law for adoption of a law by |
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| 17 | 17 | | the governing body. The vote on the ordinance, resolution, or order |
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| 18 | 18 | | setting the tax rate must be separate from the vote adopting the |
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| 19 | 19 | | budget. The vote on the ordinance, resolution, or order setting a |
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| 20 | 20 | | tax rate that exceeds the effective tax rate must be a record vote. |
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| 21 | 21 | | A motion to adopt an ordinance, resolution, or order setting a tax |
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| 22 | 22 | | rate that exceeds the effective tax rate must be made in the |
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| 23 | 23 | | following form: "I move that [the property tax rate be increased by |
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| 24 | 24 | | the adoption of] a tax rate of (specify tax rate) be adopted, which |
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| 25 | 25 | | exceeds the effective tax rate by [is effectively a] (insert |
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| 26 | 26 | | percentage by which the proposed tax rate exceeds the effective tax |
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| 27 | 27 | | rate) percent [increase in the tax rate]." If the ordinance, |
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| 28 | 28 | | resolution, or order sets a tax rate that, if applied to the total |
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| 29 | 29 | | taxable value, will impose an amount of taxes to fund maintenance |
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| 30 | 30 | | and operation expenditures of the taxing unit that exceeds the |
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| 31 | 31 | | amount of taxes imposed for that purpose in the preceding year, the |
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| 32 | 32 | | taxing unit must: |
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| 33 | 33 | | (1) include in the ordinance, resolution, or order in |
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| 34 | 34 | | type larger than the type used in any other portion of the document: |
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| 35 | 35 | | (A) the following statement: "THIS TAX RATE WILL |
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| 36 | 36 | | RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S |
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| 37 | 37 | | TAX RATE."; and |
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| 38 | 38 | | (B) if the tax rate exceeds the effective |
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| 39 | 39 | | maintenance and operations rate, the following statement: "THE TAX |
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| 40 | 40 | | RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
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| 41 | 41 | | TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) |
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| 42 | 42 | | PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A |
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| 43 | 43 | | $100,000 HOME BY APPROXIMATELY $(Insert amount)."; and |
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| 44 | 44 | | (2) include on the home page of any Internet website |
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| 45 | 45 | | operated by the unit: |
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| 46 | 46 | | (A) the following statement: "(Insert name of |
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| 47 | 47 | | unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE |
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| 48 | 48 | | AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and |
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| 49 | 49 | | (B) if the tax rate exceeds the effective |
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| 50 | 50 | | maintenance and operations rate, the following statement: "THE TAX |
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| 51 | 51 | | RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
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| 52 | 52 | | TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) |
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| 53 | 53 | | PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A |
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| 54 | 54 | | $100,000 HOME BY APPROXIMATELY $(Insert amount)." |
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| 55 | 55 | | SECTION 2. (a) The change in law made by this Act applies to |
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| 56 | 56 | | the ad valorem tax rate of a taxing unit beginning with the 2015 tax |
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| 57 | 57 | | year, except as provided by Subsection (b) of this section. |
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| 58 | 58 | | (b) If the governing body of a taxing unit adopted an ad |
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| 59 | 59 | | valorem tax rate for the taxing unit for the 2015 tax year before |
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| 60 | 60 | | the effective date of this Act, the change in law made by this Act |
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| 61 | 61 | | applies to the ad valorem tax rate of that taxing unit beginning |
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| 62 | 62 | | with the 2016 tax year, and the law in effect when the tax rate was |
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| 63 | 63 | | adopted applies to the 2015 tax year with respect to that taxing |
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| 64 | 64 | | unit. |
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| 65 | 65 | | SECTION 3. This Act takes effect immediately if it receives |
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| 66 | 66 | | a vote of two-thirds of all the members elected to each house, as |
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| 67 | 67 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 68 | 68 | | Act does not receive the vote necessary for immediate effect, this |
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| 69 | 69 | | Act takes effect September 1, 2015. |
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