Texas 2017 - 85th Regular

Texas House Bill HB1146 Compare Versions

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

Old	New	Differences
1	1	85R2163 SMH-D
2	2	By: Davis of Harris H.B. No. 1146
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the calculation of the ad valorem rollback tax rate of a
8	8	taxing unit and voter approval of a proposed tax rate that exceeds
9	9	the rollback tax rate.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 26.012, Tax Code, is amended by adding
12	12	Subdivisions (2-a) and (10-a) to read as follows:
13	13	(2-a) "Consumer price index" means the average over a
14	14	calendar year of the index that the comptroller considers to most
15	15	accurately report changes in the purchasing power of the dollar for
16	16	consumers in this state.
17	17	(10-a) "Inflation rate" means the amount, expressed in
18	18	decimal form rounded to the nearest thousandth, computed by
19	19	determining the percentage change in the consumer price index for
20	20	the preceding calendar year as compared to the consumer price index
21	21	for the calendar year preceding that calendar year.
22	22	SECTION 2. Section 26.04, Tax Code, is amended by adding
23	23	Subsection (b-1) and amending Subsection (c) to read as follows:
24	24	(b-1) By August 1 or as soon thereafter as practicable, the
25	25	comptroller shall determine the inflation rate for the current year
26	26	and publish the rate in the Texas Register.
27	27	(c) An officer or employee designated by the governing body
28	28	shall calculate the effective tax rate and the rollback tax rate for
29	29	the unit, where:
30	30	(1) "Effective tax rate" means a rate expressed in
31	31	dollars per $100 of taxable value calculated according to the
32	32	following formula:
33	33	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
34	34	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
35	35	; and
36	36	(2) "Rollback tax rate" means a rate expressed in
37	37	dollars per $100 of taxable value calculated according to the
38	38	following formula:
39	39	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
40	40	OPERATIONS RATE x (1 + INFLATION RATE) [1.08]) +
41	41	CURRENT DEBT RATE
42	42	SECTION 3. Sections 26.041(a), (b), and (c), Tax Code, are
43	43	amended to read as follows:
44	44	(a) In the first year in which an additional sales and use
45	45	tax is required to be collected, the effective tax rate and rollback
46	46	tax rate for the unit are calculated according to the following
47	47	formulas:
48	48	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
49	49	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
50	50	SALES TAX GAIN RATE
51	51	and
52	52	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
53	53	OPERATIONS RATE x (1 + INFLATION RATE) [1.08]) +
54	54	CURRENT DEBT RATE - SALES TAX GAIN RATE
55	55	where "sales tax gain rate" means a number expressed in dollars per
56	56	$100 of taxable value, calculated by dividing the revenue that will
57	57	be generated by the additional sales and use tax in the following
58	58	year as calculated under Subsection (d) [of this section] by the
59	59	current total value.
60	60	(b) Except as provided by Subsections (a) and (c) [of this
61	61	section], in a year in which a taxing unit imposes an additional
62	62	sales and use tax the rollback tax rate for the unit is calculated
63	63	according to the following formula, regardless of whether the unit
64	64	levied a property tax in the preceding year:
65	65	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
66	66	OPERATIONS EXPENSE x (1 + INFLATION RATE) [1.08]) /
67	67	([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
68	68	(CURRENT DEBT RATE - SALES TAX REVENUE RATE)
69	69	where "last year's maintenance and operations expense" means the
70	70	amount spent for maintenance and operations from property tax and
71	71	additional sales and use tax revenues in the preceding year, and
72	72	"sales tax revenue rate" means a number expressed in dollars per
73	73	$100 of taxable value, calculated by dividing the revenue that will
74	74	be generated by the additional sales and use tax in the current year
75	75	as calculated under Subsection (d) [of this section] by the current
76	76	total value.
77	77	(c) In a year in which a taxing unit that has been imposing
78	78	an additional sales and use tax ceases to impose an additional sales
79	79	and use tax the effective tax rate and rollback tax rate for the
80	80	unit are calculated according to the following formulas:
81	81	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
82	82	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
83	83	SALES TAX LOSS RATE
84	84	and
85	85	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
86	86	OPERATIONS EXPENSE x (1 + INFLATION RATE) [1.08]) /
87	87	([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
88	88	CURRENT DEBT RATE
89	89	where "sales tax loss rate" means a number expressed in dollars per
90	90	$100 of taxable value, calculated by dividing the amount of sales
91	91	and use tax revenue generated in the last four quarters for which
92	92	the information is available by the current total value and "last
93	93	year's maintenance and operations expense" means the amount spent
94	94	for maintenance and operations from property tax and additional
95	95	sales and use tax revenues in the preceding year.
96	96	SECTION 4. The heading to Section 26.08, Tax Code, is
97	97	amended to read as follows:
98	98	Sec. 26.08. ELECTION TO RATIFY TAX RATE [SCHOOL TAXES].
99	99	SECTION 5. Sections 26.08(a), (b), (d), (d-1), (d-2), (e),
100	100	and (h), Tax Code, are amended to read as follows:
101	101	(a) If the governing body of a taxing unit [school district]
102	102	adopts a tax rate that exceeds the taxing unit's [district's]
103	103	rollback tax rate, the registered voters of the taxing unit
104	104	[district] at an election held for that purpose must determine
105	105	whether to approve the adopted tax rate. When increased
106	106	expenditure of money by a taxing unit [school district] is
107	107	necessary to respond to a disaster, including a tornado, hurricane,
108	108	flood, or other calamity, but not including a drought, that has
109	109	impacted the taxing unit [a school district] and the governor has
110	110	requested federal disaster assistance for the area in which the
111	111	taxing unit [school district] is located, an election is not
112	112	required under this section to approve the tax rate adopted by the
113	113	governing body for the year following the year in which the disaster
114	114	occurs.
115	115	(b) The governing body shall order that the election be held
116	116	in the taxing unit [school district] on a date not less than 30 or
117	117	more than 90 days after the day on which it adopted the tax rate.
118	118	Section 41.001, Election Code, does not apply to the election
119	119	unless a date specified by that section falls within the time
120	120	permitted by this section. At the election, the ballots shall be
121	121	prepared to permit voting for or against the
122	122	proposition: "Approving the ad valorem tax rate of $_____ per $100
123	123	valuation in (name of taxing unit [school district]) for the
124	124	current year, a rate that is $_____ higher per $100 valuation than
125	125	the [school district] rollback tax rate of (name of taxing unit),
126	126	for the purpose of (description of purpose of increase)." The
127	127	ballot proposition must include the adopted tax rate and the
128	128	difference between that rate and the rollback tax rate in the
129	129	appropriate places.
130	130	(d) If the proposition is not approved as provided by
131	131	Subsection (c), the governing body may not adopt a tax rate for the
132	132	taxing unit [school district] for the current year that exceeds the
133	133	taxing unit's [school district's] rollback tax rate.
134	134	(d-1) If, after tax bills for the taxing unit [school
135	135	district] have been mailed, a proposition to approve the taxing
136	136	unit's [school district's] adopted tax rate is not approved by the
137	137	voters of the taxing unit [district] at an election held under this
138	138	section, on subsequent adoption of a new tax rate by the governing
139	139	body of the taxing unit [district], the assessor for the taxing unit
140	140	[school] shall prepare and mail corrected tax bills. The assessor
141	141	shall include with each bill a brief explanation of the reason for
142	142	and effect of the corrected bill. The date on which the taxes
143	143	become delinquent for the year is extended by a number of days equal
144	144	to the number of days between the date the first tax bills were sent
145	145	and the date the corrected tax bills were sent.
146	146	(d-2) If a property owner pays taxes calculated using the
147	147	originally adopted tax rate of the taxing unit [school district]
148	148	and the proposition to approve the adopted tax rate is not approved
149	149	by the voters, the taxing unit [school district] shall refund the
150	150	difference between the amount of taxes paid and the amount due under
151	151	the subsequently adopted rate if the difference between the amount
152	152	of taxes paid and the amount due under the subsequent rate is $1 or
153	153	more. If the difference between the amount of taxes paid and the
154	154	amount due under the subsequent rate is less than $1, the taxing
155	155	unit [school district] shall refund the difference on request of
156	156	the taxpayer. An application for a refund of less than $1 must be
157	157	made within 90 days after the date the refund becomes due or the
158	158	taxpayer forfeits the right to the refund.
159	159	(e) For purposes of this section, local tax funds dedicated
160	160	to a junior college district under Section 45.105(e), Education
161	161	Code, shall be eliminated from the calculation of the tax rate
162	162	adopted by the governing body of a [the] school district. However,
163	163	the funds dedicated to the junior college district are subject to
164	164	Section 26.085.
165	165	(h) For purposes of this section, increases in taxable
166	166	values and tax levies occurring within a reinvestment zone under
167	167	Chapter 311 (Tax Increment Financing Act), in which a school [the]
168	168	district is a participant, shall be eliminated from the calculation
169	169	of the tax rate adopted by the governing body of the school
170	170	district.
171	171	SECTION 6. Section 26.16(d), Tax Code, is amended to read as
172	172	follows:
173	173	(d) The county assessor-collector shall post immediately
174	174	below the table prescribed by Subsection (c) the following
175	175	statement:
176	176	"The county is providing this table of property tax rate
177	177	information as a service to the residents of the county. Each
178	178	individual taxing unit is responsible for calculating the property
179	179	tax rates listed in this table pertaining to that taxing unit and
180	180	providing that information to the county.
181	181	"The adopted tax rate is the tax rate adopted by the governing
182	182	body of a taxing unit.
183	183	"The maintenance and operations rate is the component of the
184	184	adopted tax rate of a taxing unit that will impose the amount of
185	185	taxes needed to fund maintenance and operation expenditures of the
186	186	unit for the following year.
187	187	"The debt rate is the component of the adopted tax rate of a
188	188	taxing unit that will impose the amount of taxes needed to fund the
189	189	unit's debt service for the following year.
190	190	"The effective tax rate is the tax rate that would generate
191	191	the same amount of revenue in the current tax year as was generated
192	192	by a taxing unit's adopted tax rate in the preceding tax year from
193	193	property that is taxable in both the current tax year and the
194	194	preceding tax year.
195	195	"The effective maintenance and operations rate is the tax
196	196	rate that would generate the same amount of revenue for maintenance
197	197	and operations in the current tax year as was generated by a taxing
198	198	unit's maintenance and operations rate in the preceding tax year
199	199	from property that is taxable in both the current tax year and the
200	200	preceding tax year.
201	201	"The rollback tax rate is the highest tax rate a taxing unit
202	202	may adopt before requiring voter approval at an election. An [In
203	203	the case of a taxing unit other than a school district, the voters
204	204	by petition may require that a rollback election be held if the unit
205	205	adopts a tax rate in excess of the unit's rollback tax rate. In the
206	206	case of a school district, an] election will automatically be held
207	207	if a taxing unit [the district] wishes to adopt a tax rate in excess
208	208	of the unit's [district's] rollback tax rate."
209	209	SECTION 7. Sections 31.12(a) and (b), Tax Code, are amended
210	210	to read as follows:
211	211	(a) If a refund of a tax provided by Section 11.431(b),
212	212	26.08(d-2) [26.07(g)], 26.15(f), 31.11, or 31.111 is paid on or
213	213	before the 60th day after the date the liability for the refund
214	214	arises, no interest is due on the amount refunded. If not paid on or
215	215	before that 60th day, the amount of the tax to be refunded accrues
216	216	interest at a rate of one percent for each month or part of a month
217	217	that the refund is unpaid, beginning with the date on which the
218	218	liability for the refund arises.
219	219	(b) For purposes of this section, liability for a refund
220	220	arises:
221	221	(1) if the refund is required by Section 11.431(b), on
222	222	the date the chief appraiser notifies the collector for the unit of
223	223	the approval of the late homestead exemption;
224	224	(2) if the refund is required by Section 26.08(d-2)
225	225	[26.07(g)], on the date the results of the election to reduce the
226	226	tax rate are certified;
227	227	(3) if the refund is required by Section 26.15(f):
228	228	(A) for a correction to the tax roll made under
229	229	Section 26.15(b), on the date the change in the tax roll is
230	230	certified to the assessor for the taxing unit under Section 25.25;
231	231	or
232	232	(B) for a correction to the tax roll made under
233	233	Section 26.15(c), on the date the change in the tax roll is ordered
234	234	by the governing body of the taxing unit;
235	235	(4) if the refund is required by Section 31.11, on the
236	236	date the auditor for the taxing unit determines that the payment was
237	237	erroneous or excessive or, if the amount of the refund exceeds the
238	238	applicable amount specified by Section 31.11(a), on the date the
239	239	governing body of the unit approves the refund; or
240	240	(5) if the refund is required by Section 31.111, on the
241	241	date the collector for the taxing unit determines that the payment
242	242	was erroneous.
243	243	SECTION 8. Section 33.08(b), Tax Code, is amended to read as
244	244	follows:
245	245	(b) The governing body of the taxing unit or appraisal
246	246	district, in the manner required by law for official action, may
247	247	provide that taxes that become delinquent on or after June 1 under
248	248	Section 26.08(d-1) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032,
249	249	31.04, or 42.42 incur an additional penalty to defray costs of
250	250	collection. The amount of the penalty may not exceed the amount of
251	251	the compensation specified in the applicable contract with an
252	252	attorney under Section 6.30 to be paid in connection with the
253	253	collection of the delinquent taxes.
254	254	SECTION 9. Section 130.016(b), Education Code, is amended
255	255	to read as follows:
256	256	(b) If the board of trustees of an independent school
257	257	district that divests itself of the management, control, and
258	258	operation of a junior college district under this section or under
259	259	Section 130.017 [of this code] was authorized by [Subsection (e)
260	260	of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
261	261	this code] to dedicate a portion of its tax levy to the junior
262	262	college district before the divestment, the junior college district
263	263	may levy an ad valorem tax from and after the divestment. In the
264	264	first two years in which the junior college district levies an ad
265	265	valorem tax, the tax rate adopted by the governing body may not
266	266	exceed the rate that, if applied to the total taxable value
267	267	submitted to the governing body under Section 26.04, Tax Code,
268	268	would impose an amount equal to the amount of taxes of the school
269	269	district dedicated to the junior college under [Subsection (e) of]
270	270	Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
271	271	in the last dedication before the divestment. In subsequent years,
272	272	the tax rate of the junior college district is subject to Section
273	273	26.08 [26.07], Tax Code.
274	274	SECTION 10. Sections 281.124(d) and (e), Health and Safety
275	275	Code, are amended to read as follows:
276	276	(d) If a majority of the votes cast in the election favor the
277	277	proposition, the tax rate for the specified tax year is the rate
278	278	approved by the voters, and that rate is not subject to [a rollback
279	279	election under] Section 26.08 [26.07], Tax Code. The board shall
280	280	adopt the tax rate as provided by Chapter 26, Tax Code.
281	281	(e) If the proposition is not approved as provided by
282	282	Subsection (c), the board may not adopt a tax rate for the district
283	283	for the specified tax year that exceeds the rate that was not
284	284	approved, and Section 26.08 [26.07], Tax Code, applies to the
285	285	adopted rate if that rate exceeds the district's rollback tax rate.
286	286	SECTION 11. Section 140.010(e), Local Government Code, is
287	287	amended to read as follows:
288	288	(e) A county or municipality that proposes a property tax
289	289	rate that exceeds the lower of the effective tax rate or the
290	290	rollback tax rate shall provide the following notice:
291	291	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
292	292	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
293	293	"A tax rate of $_____ per $100 valuation has been proposed for
294	294	adoption by the governing body of (insert name of county or
295	295	municipality). This rate exceeds the lower of the effective or
296	296	rollback tax rate, and state law requires that two public hearings
297	297	be held by the governing body before adopting the proposed tax
298	298	rate. The governing body of (insert name of county or
299	299	municipality) proposes to use revenue attributable to the tax rate
300	300	increase for the purpose of (description of purpose of increase).
301	301	PROPOSED TAX RATE$______ per $100
302	302	PRECEDING YEAR'S TAX RATE$______ per $100
303	303	EFFECTIVE TAX RATE$______ per $100
304	304	ROLLBACK TAX RATE$______ per $100
305	305	"The effective tax rate is the total tax rate needed to raise the
306	306	same amount of property tax revenue for (insert name of county or
307	307	municipality) from the same properties in both the (insert
308	308	preceding tax year) tax year and the (insert current tax year) tax
309	309	year.
310	310	"The rollback tax rate is the highest tax rate that (insert name of
311	311	county or municipality) may adopt without holding [before voters
312	312	are entitled to petition for] an election to ratify [limit] the rate
313	313	[that may be approved to the rollback rate].
314	314	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
315	315	FOLLOWS:
316	316	property tax amount = (rate) x (taxable value of your property) /
317	317	100
318	318	"For assistance or detailed information about tax calculations,
319	319	please contact:
320	320	(insert name of county or municipal tax assessor-collector)
321	321	(insert name of county or municipality) tax
322	322	assessor-collector
323	323	(insert address)
324	324	(insert telephone number)
325	325	(insert e-mail address)
326	326	(insert Internet website address, if applicable)
327	327	"You are urged to attend and express your views at the following
328	328	public hearings on the proposed tax rate:
329	329	First Hearing: (insert date and time) at (insert location of
330	330	meeting).
331	331	Second Hearing: (insert date and time) at (insert location
332	332	of meeting)."
333	333	SECTION 12. Section 1101.254(f), Special District Local
334	334	Laws Code, is amended to read as follows:
335	335	(f) This section does not affect the applicability of [any
336	336	rights district voters may have to petition for an election under]
337	337	Section 26.08 [26.07], Tax Code, to the district's tax rate, except
338	338	that if district voters approve a tax rate increase under this
339	339	section, [the voters may not petition for an election under]
340	340	Section 26.08 [26.07], Tax Code, does not apply [as] to the tax rate
341	341	for that year.
342	342	SECTION 13. Sections 1122.2522, 3828.157, and 8876.152,
343	343	Special District Local Laws Code, are amended to read as follows:
344	344	Sec. 1122.2522. ROLLBACK TAX RATE PROVISIONS APPLICABLE.
345	345	[(a)] If in any year the board adopts a tax rate that exceeds the
346	346	rollback tax rate calculated as provided by Chapter 26, Tax Code,
347	347	[the qualified voters of the district by petition may require that]
348	348	an election under Section 26.08 of that code must be held to
349	349	determine whether or not to approve [reduce] the tax rate adopted by
350	350	the board for that year [to the rollback tax rate].
351	351	[(b) To the extent a conflict exists between this section
352	352	and a provision of the Tax Code, the provision of the Tax Code
353	353	prevails.]
354	354	Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
355	355	PROVISIONS. Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
356	356	not apply to a tax imposed under Section 3828.153 or 3828.156.
357	357	Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
358	358	(a) Sections 26.04, 26.05, 26.06, and 26.08 [26.07], Tax Code, do
359	359	not apply to a tax imposed by the district.
360	360	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
361	361	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
362	362	78th Legislature, Regular Session, 2003, applies] to the district.
363	363	SECTION 14. Section 49.107(g), Water Code, is amended to
364	364	read as follows:
365	365	(g) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
366	366	not apply to a tax levied and collected under this section or an ad
367	367	valorem tax levied and collected for the payment of the interest on
368	368	and principal of bonds issued by a district.
369	369	SECTION 15. Section 49.108(f), Water Code, is amended to
370	370	read as follows:
371	371	(f) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
372	372	not apply to a tax levied and collected for payments made under a
373	373	contract approved in accordance with this section.
374	374	SECTION 16. Section 49.236, Water Code, as added by Chapter
375	375	335 (S.B. 392), Acts of the 78th Legislature, Regular Session,
376	376	2003, is amended by amending Subsections (a) and (d) and adding
377	377	Subsection (e) to read as follows:
378	378	(a) Before the board adopts an ad valorem tax rate for the
379	379	district for debt service, operation and maintenance purposes, or
380	380	contract purposes, the board shall give notice of each meeting of
381	381	the board at which the adoption of a tax rate will be considered.
382	382	The notice must:
383	383	(1) contain a statement in substantially the following
384	384	form:
385	385	"NOTICE OF PUBLIC HEARING ON TAX RATE
386	386	"The (name of the district) will hold a public hearing on a
387	387	proposed tax rate for the tax year (year of tax levy) on (date and
388	388	time) at (meeting place). Your individual taxes may increase or
389	389	decrease, depending on the change in the taxable value of your
390	390	property in relation to the change in taxable value of all other
391	391	property and the tax rate that is adopted.
392	392	"(Names of all board members and, if a vote was taken, an
393	393	indication of how each voted on the proposed tax rate and an
394	394	indication of any absences.)";
395	395	(2) contain the following information:
396	396	(A) the district's total adopted tax rate for the
397	397	preceding year and the proposed tax rate, expressed as an amount per
398	398	$100;
399	399	(B) the difference, expressed as an amount per
400	400	$100 and as a percent increase or decrease, as applicable, in the
401	401	proposed tax rate compared to the adopted tax rate for the preceding
402	402	year;
403	403	(C) the average appraised value of a residence
404	404	homestead in the district in the preceding year and in the current
405	405	year; the district's total homestead exemption, other than an
406	406	exemption available only to disabled persons or persons 65 years of
407	407	age or older, applicable to that appraised value in each of those
408	408	years; and the average taxable value of a residence homestead in the
409	409	district in each of those years, disregarding any homestead
410	410	exemption available only to disabled persons or persons 65 years of
411	411	age or older;
412	412	(D) the amount of tax that would have been
413	413	imposed by the district in the preceding year on a residence
414	414	homestead appraised at the average appraised value of a residence
415	415	homestead in that year, disregarding any homestead exemption
416	416	available only to disabled persons or persons 65 years of age or
417	417	older;
418	418	(E) the amount of tax that would be imposed by the
419	419	district in the current year on a residence homestead appraised at
420	420	the average appraised value of a residence homestead in that year,
421	421	disregarding any homestead exemption available only to disabled
422	422	persons or persons 65 years of age or older, if the proposed tax
423	423	rate is adopted; [and]
424	424	(F) the difference between the amounts of tax
425	425	calculated under Paragraphs (D) and (E), expressed in dollars and
426	426	cents and described as the annual percentage increase or decrease,
427	427	as applicable, in the tax to be imposed by the district on the
428	428	average residence homestead in the district in the current year if
429	429	the proposed tax rate is adopted; and
430	430	(G) if the proposed combined debt service,
431	431	operation and maintenance, and contract tax rate exceeds the
432	432	rollback tax rate, a description of the purpose of the proposed tax
433	433	increase; and
434	434	(3) contain a statement in substantially the following
435	435	form:
436	436	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
437	437	"If operation and maintenance taxes on the average residence
438	438	homestead increase by more than the inflation rate, [eight percent,
439	439	the qualified voters of the district by petition may require that]
440	440	an election must be held to determine whether to ratify [reduce] the
441	441	operation and maintenance tax rate [to the rollback tax rate] under
442	442	Section 49.236(d), Water Code."
443	443	(d) If the governing body of a district adopts a combined
444	444	debt service, operation and maintenance, and contract tax rate that
445	445	exceeds the rollback tax rate, [would impose more than 1.08 times
446	446	the amount of tax imposed by the district in the preceding year on a
447	447	residence homestead appraised at the average appraised value of a
448	448	residence homestead in the district in that year, disregarding any
449	449	homestead exemption available only to disabled persons or persons
450	450	65 years of age or older, the qualified voters of the district by
451	451	petition may require that] an election must be held to determine
452	452	whether [or not] to ratify [reduce] the tax rate adopted for the
453	453	current year [to the rollback tax rate] in accordance with the
454	454	procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and
455	455	26.081], Tax Code. For purposes of Sections 26.08(b)-(d)
456	456	[26.07(b)-(g)] and this section [subsection], the rollback tax rate
457	457	is the sum of the following tax rates:
458	458	(1) the current year's debt service tax rate;
459	459	(2) the current year's [and] contract tax rate; and
460	460	(3) [rates plus] the operation and maintenance tax
461	461	rate that would impose [1.08 times] the amount of the operation and
462	462	maintenance tax imposed by the district in the preceding year on a
463	463	residence homestead appraised at the average appraised value of a
464	464	residence homestead in the district in that year, disregarding any
465	465	homestead exemption available only to disabled persons or persons
466	466	65 years of age or older, multiplied by the sum of one and the
467	467	inflation rate.
468	468	(e) In this section, "inflation rate" means the rate
469	469	determined by the comptroller and published in the Texas Register
470	470	as provided by Section 26.04(b-1), Tax Code.
471	471	SECTION 17. The following provisions are repealed:
472	472	(1) Section 1063.255, Special District Local Laws
473	473	Code;
474	474	(2) Section 26.07, Tax Code;
475	475	(3) Section 49.236, Water Code, as added by Chapter
476	476	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
477	477	2003; and
478	478	(4) Section 49.2361, Water Code.
479	479	SECTION 18. The change in law made by this Act applies to
480	480	the ad valorem tax rate of a taxing unit beginning with the 2018 tax
481	481	year.
482	482	SECTION 19. This Act takes effect January 1, 2018.