Texas 2017 - 85th Regular

Texas House Bill HB1144 Compare Versions

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

Old	New	Differences
1	1	85R2169 SMH-D
2	2	By: Davis of Harris H.B. No. 1144
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to voter approval of a proposed ad valorem tax rate that
8	8	exceeds the rollback tax rate.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Section 26.08, Tax Code, is
11	11	amended to read as follows:
12	12	Sec. 26.08. ELECTION TO RATIFY TAX RATE [SCHOOL TAXES].
13	13	SECTION 2. Sections 26.08(a), (b), (d), (d-1), (d-2), (e),
14	14	and (h), Tax Code, are amended to read as follows:
15	15	(a) If the governing body of a taxing unit [school district]
16	16	adopts a tax rate that exceeds the taxing unit's [district's]
17	17	rollback tax rate, the registered voters of the taxing unit
18	18	[district] at an election held for that purpose must determine
19	19	whether to approve the adopted tax rate. When increased
20	20	expenditure of money by a taxing unit [school district] is
21	21	necessary to respond to a disaster, including a tornado, hurricane,
22	22	flood, or other calamity, but not including a drought, that has
23	23	impacted the taxing unit [a school district] and the governor has
24	24	requested federal disaster assistance for the area in which the
25	25	taxing unit [school district] is located, an election is not
26	26	required under this section to approve the tax rate adopted by the
27	27	governing body for the year following the year in which the disaster
28	28	occurs.
29	29	(b) The governing body shall order that the election be held
30	30	in the taxing unit [school district] on a date not less than 30 or
31	31	more than 90 days after the day on which it adopted the tax rate.
32	32	Section 41.001, Election Code, does not apply to the election
33	33	unless a date specified by that section falls within the time
34	34	permitted by this section. At the election, the ballots shall be
35	35	prepared to permit voting for or against the
36	36	proposition: "Approving the ad valorem tax rate of $_____ per $100
37	37	valuation in (name of taxing unit [school district]) for the
38	38	current year, a rate that is $_____ higher per $100 valuation than
39	39	the [school district] rollback tax rate of (name of taxing unit),
40	40	for the purpose of (description of purpose of increase)." The
41	41	ballot proposition must include the adopted tax rate and the
42	42	difference between that rate and the rollback tax rate in the
43	43	appropriate places.
44	44	(d) If the proposition is not approved as provided by
45	45	Subsection (c), the governing body may not adopt a tax rate for the
46	46	taxing unit [school district] for the current year that exceeds the
47	47	taxing unit's [school district's] rollback tax rate.
48	48	(d-1) If, after tax bills for the taxing unit [school
49	49	district] have been mailed, a proposition to approve the taxing
50	50	unit's [school district's] adopted tax rate is not approved by the
51	51	voters of the taxing unit [district] at an election held under this
52	52	section, on subsequent adoption of a new tax rate by the governing
53	53	body of the taxing unit [district], the assessor for the taxing unit
54	54	[school] shall prepare and mail corrected tax bills. The assessor
55	55	shall include with each bill a brief explanation of the reason for
56	56	and effect of the corrected bill. The date on which the taxes
57	57	become delinquent for the year is extended by a number of days equal
58	58	to the number of days between the date the first tax bills were sent
59	59	and the date the corrected tax bills were sent.
60	60	(d-2) If a property owner pays taxes calculated using the
61	61	originally adopted tax rate of the taxing unit [school district]
62	62	and the proposition to approve the adopted tax rate is not approved
63	63	by the voters, the taxing unit [school district] shall refund the
64	64	difference between the amount of taxes paid and the amount due under
65	65	the subsequently adopted rate if the difference between the amount
66	66	of taxes paid and the amount due under the subsequent rate is $1 or
67	67	more. If the difference between the amount of taxes paid and the
68	68	amount due under the subsequent rate is less than $1, the taxing
69	69	unit [school district] shall refund the difference on request of
70	70	the taxpayer. An application for a refund of less than $1 must be
71	71	made within 90 days after the date the refund becomes due or the
72	72	taxpayer forfeits the right to the refund.
73	73	(e) For purposes of this section, local tax funds dedicated
74	74	to a junior college district under Section 45.105(e), Education
75	75	Code, shall be eliminated from the calculation of the tax rate
76	76	adopted by the governing body of a [the] school district. However,
77	77	the funds dedicated to the junior college district are subject to
78	78	Section 26.085.
79	79	(h) For purposes of this section, increases in taxable
80	80	values and tax levies occurring within a reinvestment zone under
81	81	Chapter 311 (Tax Increment Financing Act), in which a school [the]
82	82	district is a participant, shall be eliminated from the calculation
83	83	of the tax rate adopted by the governing body of the school
84	84	district.
85	85	SECTION 3. Section 26.16(d), Tax Code, is amended to read as
86	86	follows:
87	87	(d) The county assessor-collector shall post immediately
88	88	below the table prescribed by Subsection (c) the following
89	89	statement:
90	90	"The county is providing this table of property tax rate
91	91	information as a service to the residents of the county. Each
92	92	individual taxing unit is responsible for calculating the property
93	93	tax rates listed in this table pertaining to that taxing unit and
94	94	providing that information to the county.
95	95	"The adopted tax rate is the tax rate adopted by the governing
96	96	body of a taxing unit.
97	97	"The maintenance and operations rate is the component of the
98	98	adopted tax rate of a taxing unit that will impose the amount of
99	99	taxes needed to fund maintenance and operation expenditures of the
100	100	unit for the following year.
101	101	"The debt rate is the component of the adopted tax rate of a
102	102	taxing unit that will impose the amount of taxes needed to fund the
103	103	unit's debt service for the following year.
104	104	"The effective tax rate is the tax rate that would generate
105	105	the same amount of revenue in the current tax year as was generated
106	106	by a taxing unit's adopted tax rate in the preceding tax year from
107	107	property that is taxable in both the current tax year and the
108	108	preceding tax year.
109	109	"The effective maintenance and operations rate is the tax
110	110	rate that would generate the same amount of revenue for maintenance
111	111	and operations in the current tax year as was generated by a taxing
112	112	unit's maintenance and operations rate in the preceding tax year
113	113	from property that is taxable in both the current tax year and the
114	114	preceding tax year.
115	115	"The rollback tax rate is the highest tax rate a taxing unit
116	116	may adopt before requiring voter approval at an election. An [In
117	117	the case of a taxing unit other than a school district, the voters
118	118	by petition may require that a rollback election be held if the unit
119	119	adopts a tax rate in excess of the unit's rollback tax rate. In the
120	120	case of a school district, an] election will automatically be held
121	121	if a taxing unit [the district] wishes to adopt a tax rate in excess
122	122	of the unit's [district's] rollback tax rate."
123	123	SECTION 4. Sections 31.12(a) and (b), Tax Code, are amended
124	124	to read as follows:
125	125	(a) If a refund of a tax provided by Section 11.431(b),
126	126	26.08(d-2) [26.07(g)], 26.15(f), 31.11, or 31.111 is paid on or
127	127	before the 60th day after the date the liability for the refund
128	128	arises, no interest is due on the amount refunded. If not paid on or
129	129	before that 60th day, the amount of the tax to be refunded accrues
130	130	interest at a rate of one percent for each month or part of a month
131	131	that the refund is unpaid, beginning with the date on which the
132	132	liability for the refund arises.
133	133	(b) For purposes of this section, liability for a refund
134	134	arises:
135	135	(1) if the refund is required by Section 11.431(b), on
136	136	the date the chief appraiser notifies the collector for the unit of
137	137	the approval of the late homestead exemption;
138	138	(2) if the refund is required by Section 26.08(d-2)
139	139	[26.07(g)], on the date the results of the election to reduce the
140	140	tax rate are certified;
141	141	(3) if the refund is required by Section 26.15(f):
142	142	(A) for a correction to the tax roll made under
143	143	Section 26.15(b), on the date the change in the tax roll is
144	144	certified to the assessor for the taxing unit under Section 25.25;
145	145	or
146	146	(B) for a correction to the tax roll made under
147	147	Section 26.15(c), on the date the change in the tax roll is ordered
148	148	by the governing body of the taxing unit;
149	149	(4) if the refund is required by Section 31.11, on the
150	150	date the auditor for the taxing unit determines that the payment was
151	151	erroneous or excessive or, if the amount of the refund exceeds the
152	152	applicable amount specified by Section 31.11(a), on the date the
153	153	governing body of the unit approves the refund; or
154	154	(5) if the refund is required by Section 31.111, on the
155	155	date the collector for the taxing unit determines that the payment
156	156	was erroneous.
157	157	SECTION 5. Section 33.08(b), Tax Code, is amended to read as
158	158	follows:
159	159	(b) The governing body of the taxing unit or appraisal
160	160	district, in the manner required by law for official action, may
161	161	provide that taxes that become delinquent on or after June 1 under
162	162	Section 26.08(d-1) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032,
163	163	31.04, or 42.42 incur an additional penalty to defray costs of
164	164	collection. The amount of the penalty may not exceed the amount of
165	165	the compensation specified in the applicable contract with an
166	166	attorney under Section 6.30 to be paid in connection with the
167	167	collection of the delinquent taxes.
168	168	SECTION 6. Section 130.016(b), Education Code, is amended
169	169	to read as follows:
170	170	(b) If the board of trustees of an independent school
171	171	district that divests itself of the management, control, and
172	172	operation of a junior college district under this section or under
173	173	Section 130.017 [of this code] was authorized by [Subsection (e)
174	174	of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
175	175	this code] to dedicate a portion of its tax levy to the junior
176	176	college district before the divestment, the junior college district
177	177	may levy an ad valorem tax from and after the divestment. In the
178	178	first two years in which the junior college district levies an ad
179	179	valorem tax, the tax rate adopted by the governing body may not
180	180	exceed the rate that, if applied to the total taxable value
181	181	submitted to the governing body under Section 26.04, Tax Code,
182	182	would impose an amount equal to the amount of taxes of the school
183	183	district dedicated to the junior college under [Subsection (e) of]
184	184	Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
185	185	in the last dedication before the divestment. In subsequent years,
186	186	the tax rate of the junior college district is subject to Section
187	187	26.08 [26.07], Tax Code.
188	188	SECTION 7. Sections 281.124(d) and (e), Health and Safety
189	189	Code, are amended to read as follows:
190	190	(d) If a majority of the votes cast in the election favor the
191	191	proposition, the tax rate for the specified tax year is the rate
192	192	approved by the voters, and that rate is not subject to [a rollback
193	193	election under] Section 26.08 [26.07], Tax Code. The board shall
194	194	adopt the tax rate as provided by Chapter 26, Tax Code.
195	195	(e) If the proposition is not approved as provided by
196	196	Subsection (c), the board may not adopt a tax rate for the district
197	197	for the specified tax year that exceeds the rate that was not
198	198	approved, and Section 26.08 [26.07], Tax Code, applies to the
199	199	adopted rate if that rate exceeds the district's rollback tax rate.
200	200	SECTION 8. Section 140.010(e), Local Government Code, is
201	201	amended to read as follows:
202	202	(e) A county or municipality that proposes a property tax
203	203	rate that exceeds the lower of the effective tax rate or the
204	204	rollback tax rate shall provide the following notice:
205	205	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
206	206	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
207	207	"A tax rate of $_____ per $100 valuation has been proposed for
208	208	adoption by the governing body of (insert name of county or
209	209	municipality). This rate exceeds the lower of the effective or
210	210	rollback tax rate, and state law requires that two public hearings
211	211	be held by the governing body before adopting the proposed tax
212	212	rate. The governing body of (insert name of county or
213	213	municipality) proposes to use revenue attributable to the tax rate
214	214	increase for the purpose of (description of purpose of increase).
215	215	PROPOSED TAX RATE$______ per $100
216	216	PRECEDING YEAR'S TAX RATE$______ per $100
217	217	EFFECTIVE TAX RATE$______ per $100
218	218	ROLLBACK TAX RATE$______ per $100
219	219	"The effective tax rate is the total tax rate needed to raise the
220	220	same amount of property tax revenue for (insert name of county or
221	221	municipality) from the same properties in both the (insert
222	222	preceding tax year) tax year and the (insert current tax year) tax
223	223	year.
224	224	"The rollback tax rate is the highest tax rate that (insert name of
225	225	county or municipality) may adopt without holding [before voters
226	226	are entitled to petition for] an election to ratify [limit] the rate
227	227	[that may be approved to the rollback rate].
228	228	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
229	229	FOLLOWS:
230	230	property tax amount = (rate) x (taxable value of your property) /
231	231	100
232	232	"For assistance or detailed information about tax calculations,
233	233	please contact:
234	234	(insert name of county or municipal tax assessor-collector)
235	235	(insert name of county or municipality) tax
236	236	assessor-collector
237	237	(insert address)
238	238	(insert telephone number)
239	239	(insert e-mail address)
240	240	(insert Internet website address, if applicable)
241	241	"You are urged to attend and express your views at the following
242	242	public hearings on the proposed tax rate:
243	243	First Hearing: (insert date and time) at (insert location of
244	244	meeting).
245	245	Second Hearing: (insert date and time) at (insert location
246	246	of meeting)."
247	247	SECTION 9. Section 1101.254(f), Special District Local Laws
248	248	Code, is amended to read as follows:
249	249	(f) This section does not affect the applicability of [any
250	250	rights district voters may have to petition for an election under]
251	251	Section 26.08 [26.07], Tax Code, to the district's tax rate, except
252	252	that if district voters approve a tax rate increase under this
253	253	section, [the voters may not petition for an election under]
254	254	Section 26.08 [26.07], Tax Code, does not apply [as] to the tax rate
255	255	for that year.
256	256	SECTION 10. Sections 1122.2522, 3828.157, and 8876.152,
257	257	Special District Local Laws Code, are amended to read as follows:
258	258	Sec. 1122.2522. ROLLBACK TAX RATE PROVISIONS APPLICABLE.
259	259	[(a)] If in any year the board adopts a tax rate that exceeds the
260	260	rollback tax rate calculated as provided by Chapter 26, Tax Code,
261	261	[the qualified voters of the district by petition may require that]
262	262	an election under Section 26.08 of that code must be held to
263	263	determine whether or not to approve [reduce] the tax rate adopted by
264	264	the board for that year [to the rollback tax rate].
265	265	[(b) To the extent a conflict exists between this section
266	266	and a provision of the Tax Code, the provision of the Tax Code
267	267	prevails.]
268	268	Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
269	269	PROVISIONS. Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
270	270	not apply to a tax imposed under Section 3828.153 or 3828.156.
271	271	Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
272	272	(a) Sections 26.04, 26.05, 26.06, and 26.08 [26.07], Tax Code, do
273	273	not apply to a tax imposed by the district.
274	274	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
275	275	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
276	276	78th Legislature, Regular Session, 2003, applies] to the district.
277	277	SECTION 11. Section 49.107(g), Water Code, is amended to
278	278	read as follows:
279	279	(g) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
280	280	not apply to a tax levied and collected under this section or an ad
281	281	valorem tax levied and collected for the payment of the interest on
282	282	and principal of bonds issued by a district.
283	283	SECTION 12. Section 49.108(f), Water Code, is amended to
284	284	read as follows:
285	285	(f) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
286	286	not apply to a tax levied and collected for payments made under a
287	287	contract approved in accordance with this section.
288	288	SECTION 13. Sections 49.236(a) and (d), Water Code, as
289	289	added by Chapter 335 (S.B. 392), Acts of the 78th Legislature,
290	290	Regular Session, 2003, are amended to read as follows:
291	291	(a) Before the board adopts an ad valorem tax rate for the
292	292	district for debt service, operation and maintenance purposes, or
293	293	contract purposes, the board shall give notice of each meeting of
294	294	the board at which the adoption of a tax rate will be considered.
295	295	The notice must:
296	296	(1) contain a statement in substantially the following
297	297	form:
298	298	"NOTICE OF PUBLIC HEARING ON TAX RATE
299	299	"The (name of the district) will hold a public hearing on a
300	300	proposed tax rate for the tax year (year of tax levy) on (date and
301	301	time) at (meeting place). Your individual taxes may increase or
302	302	decrease, depending on the change in the taxable value of your
303	303	property in relation to the change in taxable value of all other
304	304	property and the tax rate that is adopted.
305	305	"(Names of all board members and, if a vote was taken, an
306	306	indication of how each voted on the proposed tax rate and an
307	307	indication of any absences.)";
308	308	(2) contain the following information:
309	309	(A) the district's total adopted tax rate for the
310	310	preceding year and the proposed tax rate, expressed as an amount per
311	311	$100;
312	312	(B) the difference, expressed as an amount per
313	313	$100 and as a percent increase or decrease, as applicable, in the
314	314	proposed tax rate compared to the adopted tax rate for the preceding
315	315	year;
316	316	(C) the average appraised value of a residence
317	317	homestead in the district in the preceding year and in the current
318	318	year; the district's total homestead exemption, other than an
319	319	exemption available only to disabled persons or persons 65 years of
320	320	age or older, applicable to that appraised value in each of those
321	321	years; and the average taxable value of a residence homestead in the
322	322	district in each of those years, disregarding any homestead
323	323	exemption available only to disabled persons or persons 65 years of
324	324	age or older;
325	325	(D) the amount of tax that would have been
326	326	imposed by the district in the preceding year on a residence
327	327	homestead appraised at the average appraised value of a residence
328	328	homestead in that year, disregarding any homestead exemption
329	329	available only to disabled persons or persons 65 years of age or
330	330	older;
331	331	(E) the amount of tax that would be imposed by the
332	332	district in the current year on a residence homestead appraised at
333	333	the average appraised value of a residence homestead in that year,
334	334	disregarding any homestead exemption available only to disabled
335	335	persons or persons 65 years of age or older, if the proposed tax
336	336	rate is adopted; [and]
337	337	(F) the difference between the amounts of tax
338	338	calculated under Paragraphs (D) and (E), expressed in dollars and
339	339	cents and described as the annual percentage increase or decrease,
340	340	as applicable, in the tax to be imposed by the district on the
341	341	average residence homestead in the district in the current year if
342	342	the proposed tax rate is adopted; and
343	343	(G) if the proposed combined debt service,
344	344	operation and maintenance, and contract tax rate exceeds the
345	345	rollback tax rate, a description of the purpose of the proposed tax
346	346	increase; and
347	347	(3) contain a statement in substantially the following
348	348	form:
349	349	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
350	350	"If operation and maintenance taxes on the average residence
351	351	homestead increase by more than eight percent, [the qualified
352	352	voters of the district by petition may require that] an election
353	353	must be held to determine whether to ratify [reduce] the operation
354	354	and maintenance tax rate [to the rollback tax rate] under Section
355	355	49.236(d), Water Code."
356	356	(d) If the governing body of a district adopts a combined
357	357	debt service, operation and maintenance, and contract tax rate that
358	358	exceeds the rollback tax rate, [would impose more than 1.08 times
359	359	the amount of tax imposed by the district in the preceding year on a
360	360	residence homestead appraised at the average appraised value of a
361	361	residence homestead in the district in that year, disregarding any
362	362	homestead exemption available only to disabled persons or persons
363	363	65 years of age or older, the qualified voters of the district by
364	364	petition may require that] an election must be held to determine
365	365	whether [or not] to ratify [reduce] the tax rate adopted for the
366	366	current year [to the rollback tax rate] in accordance with the
367	367	procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and
368	368	26.081], Tax Code. For purposes of Sections 26.08(b)-(d)
369	369	[26.07(b)-(g)] and this section [subsection], the rollback tax rate
370	370	is the sum of the following tax rates:
371	371	(1) the current year's debt service tax rate;
372	372	(2) the current year's [and] contract tax rate; and
373	373	(3) [rates plus] the operation and maintenance tax
374	374	rate that would impose 1.08 times the amount of the operation and
375	375	maintenance tax imposed by the district in the preceding year on a
376	376	residence homestead appraised at the average appraised value of a
377	377	residence homestead in the district in that year, disregarding any
378	378	homestead exemption available only to disabled persons or persons
379	379	65 years of age or older.
380	380	SECTION 14. The following provisions are repealed:
381	381	(1) Section 1063.255, Special District Local Laws
382	382	Code;
383	383	(2) Section 26.07, Tax Code;
384	384	(3) Section 49.236, Water Code, as added by Chapter
385	385	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
386	386	2003; and
387	387	(4) Section 49.2361, Water Code.
388	388	SECTION 15. (a) The change in law made by this Act applies
389	389	to the ad valorem tax rate of a taxing unit beginning with the 2017
390	390	tax year, except as provided by Subsection (b) of this section.
391	391	(b) If the governing body of a taxing unit adopted an ad
392	392	valorem tax rate for the taxing unit for the 2017 tax year before
393	393	the effective date of this Act, the change in law made by this Act
394	394	applies to the ad valorem tax rate of that taxing unit beginning
395	395	with the 2018 tax year, and the law in effect when the tax rate was
396	396	adopted applies to the 2017 tax year with respect to that taxing
397	397	unit.
398	398	SECTION 16. This Act takes effect immediately if it
399	399	receives a vote of two-thirds of all the members elected to each
400	400	house, as provided by Section 39, Article III, Texas Constitution.
401	401	If this Act does not receive the vote necessary for immediate
402	402	effect, this Act takes effect on the 91st day after the last day of
403	403	the legislative session.