Texas 2015 - 84th Regular

Texas Senate Bill SB1680 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R12182 SMH-D
2	2	By: Bettencourt S.B. No. 1680
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the procedure for the adoption of an ad valorem tax rate
8	8	by a taxing unit.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 26.01(d), Tax Code, is amended to read as
11	11	follows:
12	12	(d) The chief appraiser shall prepare and certify to the
13	13	assessor for each taxing unit a list of those properties of which
14	14	the chief appraiser has knowledge that are reasonably likely to be
15	15	taxable by that unit but that are not included on the appraisal roll
16	16	certified to the assessor under Subsection (a) or included on the
17	17	listing certified to the assessor under Subsection (c). The chief
18	18	appraiser shall include on the list for each property the market
19	19	value, appraised value, and kind and amount of any partial
20	20	exemptions as determined by the appraisal district for the
21	21	preceding year and a reasonable estimate of the market value,
22	22	appraised value, and kind and amount of any partial exemptions for
23	23	the current year. Until the property is added to the appraisal
24	24	roll, the assessor for the taxing unit shall include each property
25	25	on the list in the calculations prescribed by Sections 26.04 and
26	26	26.041[, and for that purpose shall use the lower market value,
27	27	appraised value, or taxable value, as appropriate, included on or
28	28	computed using the information included on the list for the
29	29	property].
30	30	SECTION 2. Sections 26.04(e) and (e-1), Tax Code, are
31	31	amended to read as follows:
32	32	(e) By August 7 or as soon thereafter as practicable, the
33	33	designated officer or employee shall submit the rates to the
34	34	governing body. The designated officer or employee [He] shall
35	35	deliver by mail to each property owner in the unit or publish in a
36	36	newspaper in the form prescribed by the comptroller:
37	37	(1) the effective tax rate, the rollback tax rate, and
38	38	an explanation of how they were calculated;
39	39	(2) the effective tax rate and the rollback tax rate
40	40	calculated without regard to Section 26.03;
41	41	(3) the difference between the amount of taxes that
42	42	would be imposed by the unit if the unit were to adopt a tax rate
43	43	equal to the effective tax rate as calculated with regard to Section
44	44	26.03 and the amount of taxes that would be imposed by the unit if
45	45	the unit were to adopt a tax rate equal to the effective tax rate
46	46	calculated without regard to that section;
47	47	(4) the estimated amount of interest and sinking fund
48	48	balances and the estimated amount of maintenance and operation or
49	49	general fund balances remaining at the end of the current fiscal
50	50	year that are not encumbered with or by corresponding existing debt
51	51	obligation;
52	52	(5) [(3)] a schedule of the unit's debt obligations
53	53	showing:
54	54	(A) the amount of principal and interest that
55	55	will be paid to service the unit's debts in the next year from
56	56	property tax revenue, including payments of lawfully incurred
57	57	contractual obligations providing security for the payment of the
58	58	principal of and interest on bonds and other evidences of
59	59	indebtedness issued on behalf of the unit by another political
60	60	subdivision and, if the unit is created under Section 52, Article
61	61	III, or Section 59, Article XVI, Texas Constitution, payments on
62	62	debts that the unit anticipates to incur in the next calendar year;
63	63	(B) the amount by which taxes imposed for debt
64	64	are to be increased because of the unit's anticipated collection
65	65	rate; [and]
66	66	(C) the total of the amounts listed in Paragraphs
67	67	(A)-(B), less any amount collected in excess of the previous year's
68	68	anticipated collections certified as provided in Subsection (b);
69	69	(D) the amount of the debt that was not approved
70	70	by the voters;
71	71	(E) the percentage of the debt that was not
72	72	approved by the voters;
73	73	(F) the amount of the debt service for the next
74	74	year that is for debt that was not approved by the voters; and
75	75	(G) the percentage of the debt service for the
76	76	next year that is for debt that was not approved by the voters;
77	77	(6) [(4)] the amount of additional sales and use tax
78	78	revenue anticipated in calculations under Section 26.041;
79	79	(7) [(5)] a statement that the adoption of a tax rate
80	80	equal to the effective tax rate would result in an increase or
81	81	decrease, as applicable, in the amount of taxes imposed by the unit
82	82	as compared to last year's levy, and the amount of the increase or
83	83	decrease;
84	84	(8) [(6)] in the year that a taxing unit calculates an
85	85	adjustment under Subsection (i) or (j), a schedule that includes
86	86	the following elements:
87	87	(A) the name of the unit discontinuing the
88	88	department, function, or activity;
89	89	(B) the amount of property tax revenue spent by
90	90	the unit listed under Paragraph (A) to operate the discontinued
91	91	department, function, or activity in the 12 months preceding the
92	92	month in which the calculations required by this chapter are made;
93	93	and
94	94	(C) the name of the unit that operates a distinct
95	95	department, function, or activity in all or a majority of the
96	96	territory of a taxing unit that has discontinued operating the
97	97	distinct department, function, or activity; and
98	98	(9) [(7)] in the year following the year in which a
99	99	taxing unit raised its rollback rate as required by Subsection (j),
100	100	a schedule that includes the following elements:
101	101	(A) the amount of property tax revenue spent by
102	102	the unit to operate the department, function, or activity for which
103	103	the taxing unit raised the rollback rate as required by Subsection
104	104	(j) for the 12 months preceding the month in which the calculations
105	105	required by this chapter are made; and
106	106	(B) the amount published by the unit in the
107	107	preceding tax year under Subdivision (8)(B) [(6)(B)].
108	108	(e-1) The notice requirements imposed by Subsections
109	109	(e)(1)-(8) [(e)(1)-(6)] do not apply to a school district.
110	110	SECTION 3. Section 26.05(a), Tax Code, is amended to read as
111	111	follows:
112	112	(a) The governing body of each taxing unit, before the later
113	113	of September 30 or the 60th day after the date the certified
114	114	appraisal roll is received by the taxing unit, shall adopt a tax
115	115	rate for the current tax year and shall notify the assessor for the
116	116	unit of the rate adopted. The tax rate consists of two components,
117	117	each of which must be approved separately. The components are:
118	118	(1) for a taxing unit other than a school district, the
119	119	rate that, if applied to the total taxable value, will impose the
120	120	total amount published under Section 26.04(e)(5)(C)
121	121	[26.04(e)(3)(C)], less any amount of additional sales and use tax
122	122	revenue that will be used to pay debt service, or, for a school
123	123	district, the rate calculated under Section
124	124	44.004(c)(5)(A)(ii)(b), Education Code; and
125	125	(2) the rate that, if applied to the total taxable
126	126	value, will impose the amount of taxes needed to fund maintenance
127	127	and operation expenditures of the unit for the next year.
128	128	SECTION 4. The heading to Section 140.010, Local Government
129	129	Code, is amended to read as follows:
130	130	Sec. 140.010. PROPOSED PROPERTY TAX RATE NOTICE FOR CERTAIN
131	131	TAXING UNITS [COUNTIES AND MUNICIPALITIES].
132	132	SECTION 5. Section 140.010, Local Government Code, is
133	133	amended by amending Subsections (a), (b), (c), (d), (e), (f), and
134	134	(h) and adding Subsection (a-1) to read as follows:
135	135	(a) In this section:
136	136	(1) "Effective [, "effective] tax rate" and "rollback
137	137	tax rate" mean the effective tax rate and rollback tax rate of a
138	138	taxing unit [county or municipality, as applicable,] as calculated
139	139	under Chapter 26, Tax Code.
140	140	(2) "Taxing unit" has the meaning assigned by Section
141	141	1.04, Tax Code.
142	142	(a-1) This section applies to a taxing unit other than:
143	143	(1) a school district; or
144	144	(2) a district to which Section 49.236, Water Code,
145	145	applies.
146	146	(b) Except as provided by this subsection, each taxing unit
147	147	[county and municipality] shall provide notice of the taxing unit's
148	148	[county's or municipality's] proposed property tax rate in the
149	149	manner provided by this section. A taxing unit [county or
150	150	municipality] to which Section 26.052, Tax Code, applies may
151	151	provide notice of the taxing unit's [county's or municipality's]
152	152	proposed property tax rate in the manner provided by this section or
153	153	in the manner provided by Section 26.052, Tax Code.
154	154	(c) A taxing unit [county or municipality] that provides
155	155	notice of the taxing unit's [county's or municipality's] proposed
156	156	property tax rate in the manner provided by this section is exempt
157	157	from the notice and publication requirements of Sections
158	158	26.04(e), 26.052, and 26.06, Tax Code, as applicable, and is not
159	159	subject to an injunction for failure to comply with those
160	160	requirements.
161	161	(d) A taxing unit [county or municipality] that proposes a
162	162	property tax rate that does not exceed the lower of the effective
163	163	tax rate or the rollback tax rate shall provide the following
164	164	notice:
165	165	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
166	166	RATE FOR (INSERT NAME OF TAXING UNIT [COUNTY OR MUNICIPALITY])
167	167	"A tax rate of $______ per $100 valuation has been proposed by the
168	168	governing body of (insert name of taxing unit [county or
169	169	municipality]).
170	170	PROPOSED TAX RATE $______ per $100
171	171	PRECEDING YEAR'S TAX RATE $______ per $100
172	172	EFFECTIVE TAX RATE $______ per $100
173	173	"The effective tax rate is the total tax rate needed to raise the
174	174	same amount of property tax revenue for (insert name of taxing unit
175	175	[county or municipality]) from the same properties in both the
176	176	(insert preceding tax year) tax year and the (insert current tax
177	177	year) tax year.
178	178	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
179	179	FOLLOWS:
180	180	property tax amount = (rate) x (taxable value of your property) /
181	181	100
182	182	"For assistance or detailed information about tax calculations,
183	183	please contact:
184	184	(insert name of [county or municipal] tax assessor-collector
185	185	for taxing unit)
186	186	(insert name of taxing unit [county or municipality]) tax
187	187	assessor-collector
188	188	(insert address)
189	189	(insert telephone number)
190	190	(insert e-mail address)
191	191	(insert Internet website address, if applicable)"
192	192	(e) A taxing unit [county or municipality] that proposes a
193	193	property tax rate that exceeds the lower of the effective tax rate
194	194	or the rollback tax rate shall provide the following notice:
195	195	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
196	196	RATE FOR (INSERT NAME OF TAXING UNIT [COUNTY OR MUNICIPALITY])
197	197	"A tax rate of $_____ per $100 valuation has been proposed for
198	198	adoption by the governing body of (insert name of taxing unit
199	199	[county or municipality]). This rate exceeds the lower of the
200	200	effective or rollback tax rate, and state law requires that two
201	201	public hearings be held by the governing body before adopting the
202	202	proposed tax rate.
203	203	PROPOSED TAX RATE $______ per $100
204	204	PRECEDING YEAR'S TAX RATE $______ per $100
205	205	EFFECTIVE TAX RATE $______ per $100
206	206	ROLLBACK TAX RATE $______ per $100
207	207	"The effective tax rate is the total tax rate needed to raise the
208	208	same amount of property tax revenue for (insert name of taxing unit
209	209	[county or municipality]) from the same properties in both the
210	210	(insert preceding tax year) tax year and the (insert current tax
211	211	year) tax year.
212	212	"The rollback tax rate is the highest tax rate that (insert name of
213	213	taxing unit [county or municipality]) may adopt before voters are
214	214	entitled to petition for an election to limit the rate that may be
215	215	approved to the rollback rate.
216	216	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
217	217	FOLLOWS:
218	218	property tax amount = (rate) x (taxable value of your property) /
219	219	100
220	220	"For assistance or detailed information about tax calculations,
221	221	please contact:
222	222	(insert name of [county or municipal] tax assessor-collector
223	223	for taxing unit)
224	224	(insert name of taxing unit [county or municipality]) tax
225	225	assessor-collector
226	226	(insert address)
227	227	(insert telephone number)
228	228	(insert e-mail address)
229	229	(insert Internet website address, if applicable)
230	230	"You are urged to attend and express your views at the following
231	231	public hearings on the proposed tax rate:
232	232	First Hearing: (insert date and time) at (insert location of
233	233	meeting).
234	234	Second Hearing: (insert date and time) at (insert location
235	235	of meeting)."
236	236	(f) A taxing unit [county or municipality] shall:
237	237	(1) provide the notice required by Subsection (d) or
238	238	(e), as applicable, not later than the later of September 1 or the
239	239	30th day after the date the certified appraisal roll is received by
240	240	the taxing unit by:
241	241	(A) publishing the notice in a newspaper having
242	242	general circulation in:
243	243	(i) the county, in the case of notice
244	244	published by a county; or
245	245	(ii) the county in which the taxing unit
246	246	[municipality] is located or primarily located, in the case of
247	247	notice published by a taxing unit other than a county
248	248	[municipality]; or
249	249	(B) mailing the notice to each property owner
250	250	in[:
251	251	[(i)] the taxing unit [county, in the case
252	252	of notice provided by a county; or
253	253	[(ii) the municipality, in the case of
254	254	notice provided by a municipality]; and
255	255	(2) post the notice on the Internet website of the
256	256	taxing unit [county or municipality], if applicable, beginning not
257	257	later than the later of September 1 or the 30th day after the date
258	258	the certified appraisal roll is received by the taxing unit and
259	259	continuing until the taxing unit [county or municipality] adopts a
260	260	tax rate.
261	261	(h) A taxing unit [county or municipality] that provides
262	262	notice under this section shall on request provide any information
263	263	described by Sections 26.04(e)(1)-(9) [26.04(e)(1)-(7)], Tax Code,
264	264	regarding the taxing unit [county or municipality, as applicable].
265	265	SECTION 6. (a) The change in law made by this Act applies to
266	266	the ad valorem tax rate of a taxing unit beginning with the 2015 tax
267	267	year, except as provided by Subsection (b) of this section.
268	268	(b) If the governing body of a taxing unit adopted an ad
269	269	valorem tax rate for the taxing unit for the 2015 tax year before
270	270	the effective date of this Act, the change in law made by this Act
271	271	applies to the ad valorem tax rate of that taxing unit beginning
272	272	with the 2016 tax year, and the law in effect when the tax rate was
273	273	adopted applies to the 2015 tax year with respect to that taxing
274	274	unit.
275	275	SECTION 7. This Act takes effect immediately if it receives
276	276	a vote of two-thirds of all the members elected to each house, as
277	277	provided by Section 39, Article III, Texas Constitution. If this
278	278	Act does not receive the vote necessary for immediate effect, this
279	279	Act takes effect on the 91st day after the last day of the
280	280	legislative session.