84R12182 SMH-D
By: Elkins H.B. No. 3614
A BILL TO BE ENTITLED
AN ACT
relating to the procedure for the adoption of an ad valorem tax rate
by a taxing unit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.01(d), Tax Code, is amended to read as
follows:
(d) The chief appraiser shall prepare and certify to the
assessor for each taxing unit a list of those properties of which
the chief appraiser has knowledge that are reasonably likely to be
taxable by that unit but that are not included on the appraisal roll
certified to the assessor under Subsection (a) or included on the
listing certified to the assessor under Subsection (c). The chief
appraiser shall include on the list for each property the market
value, appraised value, and kind and amount of any partial
exemptions as determined by the appraisal district for the
preceding year and a reasonable estimate of the market value,
appraised value, and kind and amount of any partial exemptions for
the current year. Until the property is added to the appraisal
roll, the assessor for the taxing unit shall include each property
on the list in the calculations prescribed by Sections 26.04 and
26.041[, and for that purpose shall use the lower market value,
appraised value, or taxable value, as appropriate, included on or
computed using the information included on the list for the
property].
SECTION 2. Sections 26.04(e) and (e-1), Tax Code, are
amended to read as follows:
(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
deliver by mail to each property owner in the unit or publish in a
newspaper in the form prescribed by the comptroller:
(1) the effective tax rate, the rollback tax rate, and
an explanation of how they were calculated;
(2) the effective tax rate and the rollback tax rate
calculated without regard to Section 26.03;
(3) the difference between the amount of taxes that
would be imposed by the unit if the unit were to adopt a tax rate
equal to the effective tax rate as calculated with regard to Section
26.03 and the amount of taxes that would be imposed by the unit if
the unit were to adopt a tax rate equal to the effective tax rate
calculated without regard to that section;
(4) the estimated amount of interest and sinking fund
balances 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;
(5) [(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);
(D) the amount of the debt that was not approved
by the voters;
(E) the percentage of the debt that was not
approved by the voters;
(F) the amount of the debt service for the next
year that is for debt that was not approved by the voters; and
(G) the percentage of the debt service for the
next year that is for debt that was not approved by the voters;
(6) [(4)] the amount of additional sales and use tax
revenue anticipated in calculations under Section 26.041;
(7) [(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;
(8) [(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
(9) [(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 (8)(B) [(6)(B)].
(e-1) The notice requirements imposed by Subsections
(e)(1)-(8) [(e)(1)-(6)] do not apply to a school district.
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) for 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)(5)(C)
[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 calculated under Section
44.004(c)(5)(A)(ii)(b), Education Code; and
(2) the rate 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. The heading to Section 140.010, Local Government
Code, is amended to read as follows:
Sec. 140.010. PROPOSED PROPERTY TAX RATE NOTICE FOR CERTAIN
TAXING UNITS [COUNTIES AND MUNICIPALITIES].
SECTION 5. Section 140.010, Local Government Code, is
amended by amending Subsections (a), (b), (c), (d), (e), (f), and
(h) and adding Subsection (a-1) to read as follows:
(a) In this section:
(1) "Effective [, "effective] tax rate" and "rollback
tax rate" mean the effective tax rate and rollback tax rate of a
taxing unit [county or municipality, as applicable,] as calculated
under Chapter 26, Tax Code.
(2) "Taxing unit" has the meaning assigned by Section
1.04, Tax Code.
(a-1) This section applies to a taxing unit other than:
(1) a school district; or
(2) a district to which Section 49.236, Water Code,
applies.
(b) Except as provided by this subsection, each taxing unit
[county and municipality] shall provide notice of the taxing unit's
[county's or municipality's] proposed property tax rate in the
manner provided by this section. A taxing unit [county or
municipality] to which Section 26.052, Tax Code, applies may
provide notice of the taxing unit's [county's or municipality's]
proposed property tax rate in the manner provided by this section or
in the manner provided by Section 26.052, Tax Code.
(c) A taxing unit [county or municipality] that provides
notice of the taxing unit's [county's or municipality's] proposed
property tax rate in the manner provided by this section is exempt
from the notice and publication requirements of Sections
26.04(e), 26.052, and 26.06, Tax Code, as applicable, and is not
subject to an injunction for failure to comply with those
requirements.
(d) A taxing unit [county or municipality] that proposes a
property tax rate that does not exceed the lower of the effective
tax rate or the rollback tax rate shall provide the following
notice:
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
RATE FOR (INSERT NAME OF TAXING UNIT [COUNTY OR MUNICIPALITY])
"A tax rate of $______ per $100 valuation has been proposed by the
governing body of (insert name of taxing unit [county or
municipality]).
PROPOSED TAX RATE $______ per $100
PRECEDING YEAR'S TAX RATE $______ per $100
EFFECTIVE TAX RATE $______ per $100
"The effective tax rate is the total tax rate needed to raise the
same amount of property tax revenue for (insert name of taxing unit
[county or municipality]) from the same properties in both the
(insert preceding tax year) tax year and the (insert current tax
year) tax year.
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
FOLLOWS:
property tax amount = (rate) x (taxable value of your property) /
100
"For assistance or detailed information about tax calculations,
please contact:
(insert name of [county or municipal] tax assessor-collector
for taxing unit)
(insert name of taxing unit [county or municipality]) tax
assessor-collector
(insert address)
(insert telephone number)
(insert e-mail address)
(insert Internet website address, if applicable)"
(e) A taxing unit [county or municipality] that proposes a
property tax rate that exceeds the lower of the effective tax rate
or the rollback tax rate shall provide the following notice:
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
RATE FOR (INSERT NAME OF TAXING UNIT [COUNTY OR MUNICIPALITY])
"A tax rate of $_____ per $100 valuation has been proposed for
adoption by the governing body of (insert name of taxing unit
[county or municipality]). This rate exceeds the lower of the
effective or rollback tax rate, and state law requires that two
public hearings be held by the governing body before adopting the
proposed tax rate.
PROPOSED TAX RATE $______ per $100
PRECEDING YEAR'S TAX RATE $______ per $100
EFFECTIVE TAX RATE $______ per $100
ROLLBACK TAX RATE $______ per $100
"The effective tax rate is the total tax rate needed to raise the
same amount of property tax revenue for (insert name of taxing unit
[county or municipality]) from the same properties in both the
(insert preceding tax year) tax year and the (insert current tax
year) tax year.
"The rollback tax rate is the highest tax rate that (insert name of
taxing unit [county or municipality]) may adopt before voters are
entitled to petition for an election to limit the rate that may be
approved to the rollback rate.
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
FOLLOWS:
property tax amount = (rate) x (taxable value of your property) /
100
"For assistance or detailed information about tax calculations,
please contact:
(insert name of [county or municipal] tax assessor-collector
for taxing unit)
(insert name of taxing unit [county or municipality]) tax
assessor-collector
(insert address)
(insert telephone number)
(insert e-mail address)
(insert Internet website address, if applicable)
"You are urged to attend and express your views at the following
public hearings on the proposed tax rate:
First Hearing: (insert date and time) at (insert location of
meeting).
Second Hearing: (insert date and time) at (insert location
of meeting)."
(f) A taxing unit [county or municipality] shall:
(1) provide the notice required by Subsection (d) or
(e), as applicable, not later than the later of September 1 or the
30th day after the date the certified appraisal roll is received by
the taxing unit by:
(A) publishing the notice in a newspaper having
general circulation in:
(i) the county, in the case of notice
published by a county; or
(ii) the county in which the taxing unit
[municipality] is located or primarily located, in the case of
notice published by a taxing unit other than a county
[municipality]; or
(B) mailing the notice to each property owner
in[:
[(i)] the taxing unit [county, in the case
of notice provided by a county; or
[(ii) the municipality, in the case of
notice provided by a municipality]; and
(2) post the notice on the Internet website of the
taxing unit [county or municipality], if applicable, beginning not
later than the later of September 1 or the 30th day after the date
the certified appraisal roll is received by the taxing unit and
continuing until the taxing unit [county or municipality] adopts a
tax rate.
(h) A taxing unit [county or municipality] that provides
notice under this section shall on request provide any information
described by Sections 26.04(e)(1)-(9) [26.04(e)(1)-(7)], Tax Code,
regarding the taxing unit [county or municipality, as applicable].
SECTION 6. (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 7. 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 on the 91st day after the last day of the
legislative session.