84R5343 LEH-F
By: Isaac H.B. No. 1086
A BILL TO BE ENTITLED
AN ACT
relating to the form of a motion to adopt an ordinance, resolution,
or order setting an ad valorem tax rate that exceeds the effective
tax rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.05(b), Tax Code, is amended to read as
follows:
(b) A taxing unit may not impose property taxes in any year
until the governing body has adopted a tax rate for that year, and
the annual tax rate must be set by ordinance, resolution, or order,
depending on the method prescribed by law for adoption of a law by
the governing body. The vote on the ordinance, resolution, or order
setting the tax rate must be separate from the vote adopting the
budget. The vote on the ordinance, resolution, or order setting a
tax rate that exceeds the effective tax rate must be a record vote.
A motion to adopt an ordinance, resolution, or order setting a tax
rate that exceeds the effective tax rate must be made in the
following form: "I move that [the property tax rate be increased by
the adoption of] a tax rate of (specify tax rate) be adopted, which
exceeds the effective tax rate by [is effectively a] (insert
percentage by which the proposed tax rate exceeds the effective tax
rate) percent [increase in the tax rate]." If the ordinance,
resolution, or order sets a tax rate that, if applied to the total
taxable value, will impose an amount of taxes to fund maintenance
and operation expenditures of the taxing unit that exceeds the
amount of taxes imposed for that purpose in the preceding year, the
taxing unit must:
(1) include in the ordinance, resolution, or order in
type larger than the type used in any other portion of the document:
(A) the following statement: "THIS TAX RATE WILL
RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
TAX RATE."; and
(B) if the tax rate exceeds the effective
maintenance and operations rate, the following statement: "THE TAX
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE)
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A
$100,000 HOME BY APPROXIMATELY $(Insert amount)."; and
(2) include on the home page of any Internet website
operated by the unit:
(A) the following statement: "(Insert name of
unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE
AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
(B) if the tax rate exceeds the effective
maintenance and operations rate, the following statement: "THE TAX
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE)
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A
$100,000 HOME BY APPROXIMATELY $(Insert amount)."
SECTION 2. (a) The change in law made by this Act applies to
the ad valorem tax rate of a taxing unit beginning with the 2015 tax
year, except as provided by Subsection (b) of this section.
(b) If the governing body of a taxing unit adopted an ad
valorem tax rate for the taxing unit for the 2015 tax year before
the effective date of this Act, the change in law made by this Act
applies to the ad valorem tax rate of that taxing unit beginning
with the 2016 tax year, and the law in effect when the tax rate was
adopted applies to the 2015 tax year with respect to that taxing
unit.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.