Texas 2015 - 84th Regular

Texas House Bill HB365 Compare Versions

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1	1	By: Elkins H.B. No. 365
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the calculation of the ad valorem rollback tax rates of
7	7	certain taxing units.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 26.04, Tax Code, is amended by amending
10	10	Subsection (c) and adding Subsections (c-1) and (c-2) to read as
11	11	follows:
12	12	(c) An officer or employee designated by the governing body
13	13	shall calculate the effective tax rate and the rollback tax rate for
14	14	the unit, where:
15	15	(1) "Effective tax rate" means a rate expressed in
16	16	dollars per $100 of taxable value calculated according to the
17	17	following formula:
18	18	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
19	19	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
20	20	; and
21	21	(2) "Rollback tax rate" means a rate expressed in
22	22	dollars per $100 of taxable value calculated according to the
23	23	following formula:
24	24	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
25	25	OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE
26	26	(c-1) Notwithstanding any other provision of this section,
27	27	the designated officer or employee may substitute "1.08" for "1.04"
28	28	in the calculation of the rollback tax rate if:
29	29	(1) any part of the taxing unit is located in an area
30	30	declared a disaster area by the governor or the president of the
31	31	United States during the current tax year.
32	32	SECTION 2. Section 26.041, Tax Code, is amended by amending
33	33	Subsections (a), (b), and (c) and adding Subsections (c-1) and
34	34	(c-2) to read as follows:
35	35	(a) In the first year in which an additional sales and use
36	36	tax is required to be collected, the effective tax rate and rollback
37	37	tax rate for the unit are calculated according to the following
38	38	formulas:
39	39	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
40	40	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
41	41	SALES TAX GAIN RATE
42	42	and
43	43	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
44	44	OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE -
45	45	SALES TAX GAIN RATE
46	46	where "sales tax gain rate" means a number expressed in dollars per
47	47	$100 of taxable value, calculated by dividing the revenue that will
48	48	be generated by the additional sales and use tax in the following
49	49	year as calculated under Subsection (d) [of this section] by the
50	50	current total value.
51	51	(b) Except as provided by Subsections (a) and (c) [of this
52	52	section], in a year in which a taxing unit imposes an additional
53	53	sales and use tax the rollback tax rate for the unit is calculated
54	54	according to the following formula, regardless of whether the unit
55	55	levied a property tax in the preceding year:
56	56	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
57	57	OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT
58	58	TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT
59	59	RATE - SALES TAX REVENUE RATE)
60	60	where "last year's maintenance and operations expense" means the
61	61	amount spent for maintenance and operations from property tax and
62	62	additional sales and use tax revenues in the preceding year, and
63	63	"sales tax revenue rate" means a number expressed in dollars per
64	64	$100 of taxable value, calculated by dividing the revenue that will
65	65	be generated by the additional sales and use tax in the current year
66	66	as calculated under Subsection (d) [of this section] by the current
67	67	total value.
68	68	(c) In a year in which a taxing unit that has been imposing
69	69	an additional sales and use tax ceases to impose an additional sales
70	70	and use tax the effective tax rate and rollback tax rate for the
71	71	unit are calculated according to the following formulas:
72	72	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
73	73	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
74	74	SALES TAX LOSS RATE
75	75	and
76	76	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
77	77	OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT
78	78	TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
79	79	where "sales tax loss rate" means a number expressed in dollars per
80	80	$100 of taxable value, calculated by dividing the amount of sales
81	81	and use tax revenue generated in the last four quarters for which
82	82	the information is available by the current total value and "last
83	83	year's maintenance and operations expense" means the amount spent
84	84	for maintenance and operations from property tax and additional
85	85	sales and use tax revenues in the preceding year.
86	86	(c-1) Notwithstanding any other provision of this section,
87	87	the designated officer or employee may substitute "1.08" for "1.04"
88	88	in the calculation of the rollback tax rate if:
89	89	(1) any part of the taxing unit is located in an area
90	90	declared a disaster area by the governor or the president of the
91	91	United States during the current tax year.
92	92	SECTION 3. Section 26.08, Tax Code, is amended by amending
93	93	Subsections (a), (b), (d), (d-1) and (d-2) to read as follows:
94	94	Sec. 26.08. ELECTION TO RATIFY [SCHOOL] TAXES. (a) If the
95	95	governing body of a taxing unit [school district] adopts a tax rate
96	96	that exceeds the taxing unit's [district's] rollback tax rate, the
97	97	registered voters of the taxing unit [district] at an election held
98	98	for that purpose must determine whether to approve the adopted tax
99	99	rate. When increased expenditure of money by a taxing unit [school
100	100	district] is necessary to respond to a disaster, including a
101	101	tornado, hurricane, flood, or other calamity, but not including a
102	102	drought, that has impacted a taxing unit [school district] and the
103	103	governor has requested federal disaster assistance for the area in
104	104	which the taxing unit [school district] is located, an election is
105	105	not required under this section to approve the tax rate adopted by
106	106	the governing body for the year following the year in which the
107	107	disaster occurs.
108	108	(b) The governing body shall order that the election be held
109	109	in the taxing unit [school district] on a date not less than 30 or
110	110	more than 90 days after the day on which it adopted the tax rate.
111	111	Section 41.001, Election Code, does not apply to the election
112	112	unless a date specified by that section falls within the time
113	113	permitted by this section. At the election, the ballots shall be
114	114	prepared to permit voting for or against the proposition:
115	115	"Approving the ad valorem tax rate of $_____ per $100 valuation in
116	116	(name of taxing unit [school district]) for the current year, a rate
117	117	that is $_____ higher per $100 valuation than the school district
118	118	rollback tax rate." The ballot proposition must include the
119	119	adopted tax rate and the difference between that rate and the
120	120	rollback tax rate in the appropriate places.
121	121	(d) If the proposition is not approved as provided by
122	122	Subsection (c), the governing body may not adopt a tax rate for the
123	123	taxing unit [school district] for the current year that exceeds the
124	124	taxing unit's [school district's] rollback tax rate.
125	125	(d-1) If, after tax bills for the taxing unit [school
126	126	district] have been mailed, a proposition to approve the taxing
127	127	unit's [school district's] adopted tax rate is not approved by the
128	128	voters of the taxing unit [district] at an election held under this
129	129	section, on subsequent adoption of a new tax rate by the governing
130	130	body of the taxing unit [district], the assessor for the taxing unit
131	131	[school] shall prepare and mail corrected tax bills. The assessor
132	132	shall include with each bill a brief explanation of the reason for
133	133	and effect of the corrected bill. The date on which the taxes
134	134	become delinquent for the year is extended by a number of days equal
135	135	to the number of days between the date the first tax bills were sent
136	136	and the date the corrected tax bills were sent.
137	137	(d-2) If a property owner pays taxes calculated using the
138	138	originally adopted tax rate of the taxing unit [school district]
139	139	and the proposition to approve the adopted tax rate is not approved
140	140	by voters, the taxing unit [school district] shall refund the
141	141	difference between the amount of taxes paid and the amount due under
142	142	the subsequently adopted rate if the difference between the amount
143	143	of taxes paid and the amount due under the subsequent rate is $1 or
144	144	more. If the difference between the amount of taxes paid and the
145	145	amount due under the subsequent rate is less than $1, the taxing
146	146	unit [school district] shall refund the difference on request of
147	147	the taxpayer. An application for a refund of less than $1 must be
148	148	made within 90 days after the date the refund becomes due or the
149	149	taxpayer forfeits the right to the refund.
150	150	SECTION 4. Section 49.236, Water Code, as added by Chapters
151	151	248 (H.B. 1541) and 335 (S.B. 392), Acts of the 78th Legislature,
152	152	Regular Session, 2003, is reenacted and amended to read as follows:
153	153	Sec. 49.236. NOTICE OF TAX HEARING. (a) Before the board
154	154	adopts an ad valorem tax rate for the district for debt service,
155	155	operation and maintenance purposes, or contract purposes, the board
156	156	shall give notice of each meeting of the board at which the adoption
157	157	of a tax rate will be considered. The notice must:
158	158	(1) contain a statement in substantially the following
159	159	form:
160	160	"NOTICE OF PUBLIC HEARING ON TAX RATE
161	161	"The (name of the district) will hold a public hearing on a
162	162	proposed tax rate for the tax year (year of tax levy) on (date and
163	163	time) at (meeting place). Your individual taxes may increase or
164	164	decrease, depending on the change in the taxable value of your
165	165	property in relation to the change in taxable value of all other
166	166	property and the tax rate that is adopted.
167	167	"(Names of all board members and, if a vote was taken, an
168	168	indication of how each voted on the proposed tax rate and an
169	169	indication of any absences.)";
170	170	(2) contain the following information:
171	171	(A) the district's total adopted tax rate for the
172	172	preceding year and the proposed tax rate, expressed as an amount per
173	173	$100;
174	174	(B) the difference, expressed as an amount per
175	175	$100 and as a percent increase or decrease, as applicable, in the
176	176	proposed tax rate compared to the adopted tax rate for the preceding
177	177	year;
178	178	(C) the average appraised value of a residence
179	179	homestead in the district in the preceding year and in the current
180	180	year; the district's total homestead exemption, other than an
181	181	exemption available only to disabled persons or persons 65 years of
182	182	age or older, applicable to that appraised value in each of those
183	183	years; and the average taxable value of a residence homestead in the
184	184	district in each of those years, disregarding any homestead
185	185	exemption available only to disabled persons or persons 65 years of
186	186	age or older;
187	187	(D) the amount of tax that would have been
188	188	imposed by the district in the preceding year on a residence
189	189	homestead appraised at the average appraised value of a residence
190	190	homestead in that year, disregarding any homestead exemption
191	191	available only to disabled persons or persons 65 years of age or
192	192	older;
193	193	(E) the amount of tax that would be imposed by the
194	194	district in the current year on a residence homestead appraised at
195	195	the average appraised value of a residence homestead in that year,
196	196	disregarding any homestead exemption available only to disabled
197	197	persons or persons 65 years of age or older, if the proposed tax
198	198	rate is adopted; and
199	199	(F) the difference between the amounts of tax
200	200	calculated under Paragraphs (D) and (E), expressed in dollars and
201	201	cents and described as the annual percentage increase or decrease,
202	202	as applicable, in the tax to be imposed by the district on the
203	203	average residence homestead in the district in the current year if
204	204	the proposed tax rate is adopted; and
205	205	(3) contain a statement in substantially the following
206	206	form:
207	207	"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
208	208	"If taxes on the average residence homestead increase by more
209	209	than four [eight] percent, the qualified voters of the district by
210	210	petition may require that an election be held to determine whether
211	211	to reduce the operation and maintenance tax rate to the rollback tax
212	212	rate under Section 49.236(d), Water Code."
213	213	(b) Notice of the hearing shall be:
214	214	(1) published at least once in a newspaper having
215	215	general circulation in the district at least seven days before the
216	216	date of the hearing; or
217	217	(2) mailed to each owner of taxable property in the
218	218	district, at the address for notice shown on the most recently
219	219	certified tax roll of the district, at least 10 days before the date
220	220	of the hearing.
221	221	(c) The notice provided under this section may not be
222	222	smaller than one-quarter page of a standard-size or tabloid-size
223	223	newspaper of general circulation, and the headline on the notice
224	224	must be in 18-point or larger type.
225	225	(d) If the governing body of a district adopts a combined
226	226	debt service, operation and maintenance, and contract tax rate that
227	227	would impose more than 1.04 [1.08] times the amount of tax imposed
228	228	by the district in the preceding year on a residence homestead
229	229	appraised at the average appraised value of a residence homestead
230	230	in the district in that year, disregarding any homestead exemption
231	231	available only to disabled persons or persons 65 years of age or
232	232	older, the qualified voters of the district by petition may require
233	233	that an election be held to determine whether [or not] to reduce the
234	234	tax rate adopted for the current year to the rollback tax rate in
235	235	accordance with the procedures provided by Sections 26.07(b)-(g)
236	236	and 26.081, Tax Code. For purposes of Sections 26.07(b)-(g) and
237	237	this subsection, the rollback tax rate is the current year's debt
238	238	service and contract tax rates plus the operation and maintenance
239	239	tax rate that would impose 1.04 [1.08] times the amount of the
240	240	operation and maintenance tax imposed by the district in the
241	241	preceding year on a residence homestead appraised at the average
242	242	appraised value of a residence homestead in the district in that
243	243	year, disregarding any homestead exemption available only to
244	244	disabled persons or persons 65 years of age or older.
245	245	(e) Notwithstanding any other provision of this section,
246	246	the board may substitute "eight percent" for "four percent" in
247	247	Subsection (a) and "1.08" for "1.04" in Subsection (d) if:
248	248	(1) any part of the district is located in an area
249	249	declared a disaster area by the governor or the president of the
250	250	United States during the current tax year.
251	251	SECTION 5. Section 26.07, Tax Code is repealed.
252	252	SECTION 6. (a) The change in law made by this Act applies
253	253	to the ad valorem tax rate of a taxing unit beginning with the 2015
254	254	tax year, except as provided by Subsection (b) of this section.
255	255	(b) If the governing body of a taxing unit adopted an ad
256	256	valorem tax rate for the taxing unit for the 2015 tax year before
257	257	the effective date of this Act, the change in law made by this Act
258	258	applies to the ad valorem tax rate of that taxing unit beginning
259	259	with the 2016 tax year, and the law in effect when the tax rate was
260	260	adopted applies to the 2015 tax year with respect to that taxing
261	261	unit.
262	262	SECTION 7. This Act takes effect immediately if it receives
263	263	a vote of two-thirds of all the members elected to each house, as
264	264	provided by Section 39, Article III, Texas Constitution. If this
265	265	Act does not receive the vote necessary for immediate effect, this
266	266	Act takes effect on the 91st day after the last day of the
267	267	legislative session.