By: Creighton S.B. No. 1760
A BILL TO BE ENTITLED
AN ACT
relating to the transparent and equitable application of ad valorem
taxation procedures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1.111(f) and (j), Tax Code, are amended
to read as follows:
(f) A property owner in writing filed with the appraisal
district may direct the appraisal district, appraisal review board,
and each taxing unit participating in the appraisal district to
deliver all notices, tax bills, refunds, orders, and other
communications relating to one or more specified items of the
owner's property to a specified person instead of to the property
owner. The instrument must clearly identify the person by name and
give the person's address to which all notices, tax bills, refunds,
orders, and other communications are to be delivered. The property
owner may but is not required to designate the person's agent for
other tax matters designated under Subsection (a) as the person to
receive all notices, tax bills, refunds, orders, and other
communications. The designation of an agent for other tax matters
under Subsection (a) may also provide that the agent is the person
to whom notices, tax bills, refunds, orders, and other
communications are to be delivered under this subsection.
(j) An individual exempt from registration as a property tax
consultant under Section 1152.002, Occupations Code, who is not
supervised, directed, or compensated by a person required to
register as a property tax consultant under that chapter and who
files a protest with the appraisal review board on behalf of the
property owner is entitled to receive all notices from the
appraisal district and appraisal review board regarding the
property subject to the protest until the authority is revoked by
the property owner as provided by this section. An individual to
which this subsection applies who is not designated by the property
owner to receive notices, tax bills, refunds, orders, and other
communications as provided by Subsection (f) or Section 1.11 shall
file a statement with the protest that includes:
(1) the individual's name and address;
(2) a statement that the individual is acting on
behalf of the property owner; and
(3) a statement of the basis for the individual's
exemption from registration under Section 1152.002, Occupations
Code.
SECTION 2. Chapter 5, Tax Code, is amended by adding Section
5.091 to read as follows:
Sec. 5.091. STATEWIDE LIST OF TAX RATES. (a) Each year the
comptroller shall prepare a list that includes the total tax rate
imposed by each taxing unit in this state, other than a school
district, if the tax rate is reported to the comptroller, for the
year preceding the year in which the list is prepared. The
comptroller shall list the tax rates in descending order.
(b) Not later than December 31 of each year, the comptroller
shall publish on the comptroller's Internet website the list
required by Subsection (a).
SECTION 3. Section 11.431(b), Tax Code, is amended to read
as follows:
(b) If a late application is approved after approval of the
appraisal records by the appraisal review board, the chief
appraiser shall notify the collector for each unit in which the
residence is located. The collector shall deduct from the person's
tax bill the amount of tax imposed on the exempted amount if the tax
has not been paid. If the tax has been paid, the collector shall
refund the amount of tax imposed on the exempted amount. A person
is not required to apply for a refund under this subsection to
receive the refund.
SECTION 4. 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,
and at least 60 percent of the members of the governing body must
vote in favor of the ordinance, resolution, or order. 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), which 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 5. Section 26.06(d), Tax Code, is amended to read as
follows:
(d) At the public hearings the governing body shall announce
the date, time, and place of the meeting at which it will vote on the
proposed tax rate. After each hearing the governing body shall give
notice of the meeting at which it will vote on the proposed tax rate
and the notice shall be in the same form as prescribed by
Subsections (b) and (c), except that it must state the following:
"NOTICE OF TAX REVENUE INCREASE
"The (name of the taxing unit) conducted public hearings on
(date of first hearing) and (date of second hearing) on a proposal
to increase the total tax revenues of the (name of the taxing unit)
from properties on the tax roll in the preceding year by (percentage
by which proposed tax rate exceeds lower of rollback tax rate or
effective tax rate calculated under this chapter) percent.
"The total tax revenue proposed to be raised last year at last
year's tax rate of (insert tax rate for the preceding year) for each
$100 of taxable value was (insert total amount of taxes imposed in
the preceding year).
"The total tax revenue proposed to be raised this year at the
proposed tax rate of (insert proposed tax rate) for each $100 of
taxable value, excluding tax revenue to be raised from new property
added to the tax roll this year, is (insert amount computed by
multiplying proposed tax rate by the difference between current
total value and new property value).
"The total tax revenue proposed to be raised this year at the
proposed tax rate of (insert proposed tax rate) for each $100 of
taxable value, including tax revenue to be raised from new property
added to the tax roll this year, is (insert amount computed by
multiplying proposed tax rate by current total value).
"The (governing body of the taxing unit) is scheduled to vote
on the tax rate that will result in that tax increase at a public
meeting to be held on (date of meeting) at (location of meeting,
including mailing address) at (time of meeting).
"The (governing body of the taxing unit) proposes to use the
increase in total tax revenue for the purpose of (description of
purpose of increase)."
SECTION 6. Section 26.15(f), Tax Code, is amended to read as
follows:
(f) If a correction that decreases the tax liability of a
property owner is made after the owner has paid the tax, the taxing
unit shall refund to the property owner the difference between the
tax paid and the tax legally due, except as provided by Section
25.25(n). A property owner is not required to apply for a refund
under this subsection to receive the refund.
SECTION 7. Section 26.08(b), Tax Code, is amended to read as
follows:
(b) The governing body shall order that the election be held
in the school district on a date not less than 30 or more than 90
days after the day on which it adopted the tax rate. Section
41.001, Election Code, does not apply to the election unless a date
specified by that section falls within the time permitted by this
section. At the election, the ballots shall be prepared to permit
voting for or against the proposition: "Approving the ad valorem
tax rate of $_____ per $100 valuation in (name of school district)
for the current year, a rate that is $_____ higher per $100
valuation than the school district rollback tax rate, for the
purpose of (description of purpose of increase)." The ballot
proposition must include the adopted tax rate and the difference
between that rate and the rollback tax rate in the appropriate
places.
SECTION 8. Section 42.23, Tax Code, is amended by adding
Subsection (i) to read as follows:
(i) When an appraisal district employee testifies as to the
value of real property in an appeal under Section 42.25 or 42.26,
the court may give preference to an employee who is a person
authorized to perform an appraisal of real estate under Section
1103.201, Occupations Code.
SECTION 9. Section 42.43(b), Tax Code, is amended to read as
follows:
(b) For a refund made under this section, the taxing unit
shall include with the refund interest on the amount refunded
calculated at an annual rate of 9.5 [that is equal to the sum of two
percent and the most recent prime rate quoted and published by the
Federal Reserve Board as of the first day of the month in which the
refund is made, but not more than a total of eight] percent,
calculated from the delinquency date for the taxes until the date
the refund is made.
SECTION 10. Sections 140.010(e) and (f), Local Government
Code, are amended to read as follows:
(e) A 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 COUNTY OR MUNICIPALITY)
"A tax rate of $_____ per $100 valuation has been proposed for
adoption by the governing body of (insert name of 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.
The governing body of (insert name of county or municipality)
proposes to use revenue attributable to the tax rate increase for
the purpose of (description of purpose of increase).
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 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
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)
(insert name of 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 county or municipality shall:
(1) provide the notice required by Subsection (d) or
(e), as applicable, by the earlier of October [not later than
September] 1 or the 30th day after the date the taxing unit's
appraisal roll is certified 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 municipality
is located or primarily located, in the case of notice published by
a municipality; or
(B) mailing the notice to each property owner in:
(i) the 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
county or municipality, if applicable, beginning by the earlier of
October [not later than September] 1 or the 30th day after the date
the taxing unit's appraisal roll is certified and continuing until
the county or municipality adopts a tax rate.
SECTION 11. Subchapter H, Chapter 49, Water Code, is
amended by adding Section 49.2361 to read as follows:
Sec. 49.2361. ADDITIONAL NOTICE FOR CERTAIN TAX INCREASES.
If a district proposes to adopt a combined tax rate that would
authorize the qualified voters of the district by petition to
require a rollback election to be held in the district, the notice
required by Section 49.236 must include a description of the
purpose of the proposed tax increase.
SECTION 12. (a) Except as provided by Subsection (b), the
changes in law made by this Act apply only to an ad valorem tax year
that begins on or after the effective date of this Act.
(b) The change in law made by this Act to a provision of
Title 1, Tax Code, that affects the amount or rate of any penalty or
interest due applies only to penalties and interest that accrue on
or after the effective date of this Act. Penalties and interest
that accrued before the effective date of this Act are governed by
the law in effect when the penalties and interest accrued, and that
law is continued in effect for that purpose.
SECTION 13. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2016.
(b) Section 42.23(i), Tax Code, as added by this Act, takes
effect January 1, 2020.